All Forum Posts by: Ryan Xu

Just make sure to get their parents to co-sign the lease. This is the most guaranteed way to handle it. It is easy to do nowadays if you know how to use DocuSign or any other signing service.

"Beware of dog " works better than "no trespass". But at the end of the day, only do flips in a bad neighborhood (avoid if you can). Rentals are only in a good neighborhood. 

It is not only for avoiding people physically damage your property or occupy it. Also, to lower the chance of tenants not paying rent.

The easiest way would be to keep the invoices, number order them, then log them on a spreadsheet. Even accountants are still doing this instead of any apps. There are tons of temples on the internet, you can download them then modify one for your purpose.

After you build up a good habit of tracing records, an iPhone notebook can actually do the same work. Accounting is not hard.

It needs to be taken off from the profit amount as a capital gain.

However, if you put the money on the next project with a 1031 trade deal in a timely manner, the amount can defer as a long-term gain. Then you may be able to figure a way to lower it legally as the depreciation of a rental property in the future.

It looks awesome! Great job Kevin. 

 The lease option is one type of rent-to-own, the tenant has the option but not obligated to buy when expire. Rent-to-own also including another type of contract called lease purchase, that he/she has to buy it when it expires. Thus, option normally charge more than obligation. In a surely appreciate area, lease-purchase put the landlord at a disadvantage position, vise versa. 

Sound like a good project to work on. Take a good eye on the time frame for the reno, it can be critical.

Since you guys have 12 rentals already, I think flip, hold, and refi should be able to provide a better long term return. (Total cash flow is not a concern for you guys, and you all got the experience to make the numbers look good) 

As Tim calculated, you can also adjust the vacancy rate for your project. Regardless, it still seems like it'll give you negative cash flow.

Consider if there is any chance you can rehab for a higher rent (compare to the local rent rate) then redo the calculation. Or if by any chance it has a rapid appreciation potential. If your answer is no for both, go find another deal.

The short answer is yes you can consider. The key is to do the calculation for the profit margin.

Even though, IMO for a metro city like Chicago with a high population, the majority return is from using the leverage to increase the equity + appreciation. So the lease option is potentially more profitable than rent-to-own.

Aceable is the one I would recommend. I've used it for the TX license test, the UI and content are the best. They're available for MI and no expiration date.

I wish WA had it, then I wouldn't use the 1990s' style, Rockwell.