All Forum Posts by: Steve Vaughan

I get what you're saying and certain occupations are or should be viewed more closely for sure. But I always describe the property, not the people.  I don't even say 'walk' to schools and shopping anymore.  I say 'close to'.  Learned that one years ago when I was still placing ads in the paper!  

Thanks for the article, @William Byers .  Personally I am reducing a bit because prices are approaching replacement costs and also (mainly) because of emotional support this and comfort animal that.  Glad to see more buyers may be viewing my properties!

If pests and termites are an issue, I'll fourth the hardiplank siding vote. Order it in the color you want! You can do it lap-style or panel.

As a 'business' with an EIN, could you use a different form than a Schedule E?  Rental income/expenses for my business-owned property is on Form 8825. They only want your EIN or TIN.   

Thanks for sharing @Nasar Elarabi ! Sorry that happened to you.  Yeah, if they do share that in the flippin shows, the guys have the money to pay no problem once the drama clears.  We should all share more struggle stories!

Here an official 'seller disclosure' need only be complete with the sale of a 4-unit or smaller.  That doesn't mean the seller is absolved from not disclosing something so materially significant!  Thank you for the warning @Albert Hoffman .  I always talk to tenants a little when viewing a property.  Now I will also call the city to see if any pending action is involved as part of my due diligence! Please keep us posted.

25% down with 5% rate and 5-yr call/rate adjust is what I have seen in commercial lending as well.  15 or 20-yr terms.  In my 5-unit+ buildings I like to see at most 100x monthly rent for a purchase price.  Your area may have lower w/s/g costs? Lower taxes?  Also, I generally buy going off of current rents unless the vacant unit is being kept that way specifically to show prospective buyers.  As for the rest, ditto what @Jonathan Wilks says!

@Zach Cropsey welcome to the site!  With your finance degree, already having a rental or two and working with a PM/development firm, I'd say you have a great foundation for where you want to go!

Hi @Marci Stein . Is the area so rustic/rural that you will have a hard time finding good renters? If not, the numbers look good.  Make sure you calculate for a realistic vacancy factor.  I know what you mean having a unique property when time to sell.  With these numbers, you could have a paid off house in no time.  What is your holding timeframe? >5 yrs? >10yrs?  The longer it is, the less re-selling would factor into my buying decision.  Congrats and good luck!

Your state website should have a link or info for establishing a business with the secretary of state. Formation costs should be outlined there. Most states require you to do quarterly tax reporting. Sure you need an LLC to wholesale?