All Forum Posts by: Steve Vaughan

@Jon Holdman  well said.   Buyers will be there for a good deal.  Please answer me this with a double close and transfer taxes.  I have listened to wholesalers on podcasts over and over and never heard this addressed (except once from Sharon V where she has to pay $300 or something). In WA state, we have to pay excise transfer taxes equal to 1.58% to 1.87% for every title transfer, even if it's for 2 seconds.   Double-close a $200k deal and we're talking $3740.  Twice!  Is my state different than every other state?  Do 'normal' states only charge a flat fee in transfer tax? I'm thinking so since I haven't yet heard it addressed. In WA I do assignments obviously.  Please, experienced double-closers chime in about how you handle excise transfer taxes with double-closings!

@Daniel Francis good point from the lender's perspective.   In addition, most properties being wholesaled need major repairs and permit/condemnation corrects don't they?  Not bankable anyway in other words. I am not a wholesaler, but imagine they want the cash quick and move on? Not wait 30 days for something that very well won't pan out.  I would love to hear a few wholesalers weigh in on this!  

I own. It is feasible here where it may not be in other markets like Cali, NY, DC, HI. If I was only factoring in ROI, I would rent my house out and buy something smaller. It is a 2-family of sorts anyway (separate mother-in-law apt). Life is not just the ROI, and we like the house and location so we will stay. It would be nice at times to call someone else when the water heater goes out or whatever, but I don't think I could ever rent again. If I want to paint or get a pet, I couldn't imagine having to ask a LL first!

Ok.  I see what you're saying @Account Closed .  Thanks for the feedback!

Holy cow.  Scanning and indexing and dropboxing, clouds...  What do you do with the paper after you've scanned it? I've been managing over 20 rentals (over 30 the last 7 yrs) a while and like to keep things simple.  Like @Jean Bolger  says, keep property purchase files separate from current leases and expense/repair ppwk.  Old tenant files are kept in a  ... wait for it.... old tenant file. (for 7 yrs)  The only thing in a specific unit / property file in my locked file cabinet is the current tenant lease ppwk on one side and relevant dates I replaced appliances and that, appliance warranty stuff, paint color swatches maybe on the other side of the folder.  My repair receipts are in envelopes marked 123 Main St 2014 or for multi's I have 4 envelopes per property for the same year marked maintenance/cleaning, repairs, utilities, taxes/ins.   They all go into my tax file box at the end of the year and I start over the following year.  Throughout the year I use a basic rental property mgt software to enter rents and expenses as I go, before I put them in their envelope.  My plan is far from perfect and I enjoy seeing what others do.  Thank you for this discussion!

@Jennifer Roberts , thank you for introducing yourself.  By FS Houses, do you mean SF houses or is that something different?  I like the idea of the PM also being an investor that owns rentals themselves.  That's critical!

@Account Closed  , I agree. It's identifying where the expansion cycles are vs the peaks that's the tough part, right? Do you mostly look at macro economic factors for your area of interest?  Job growth, population growth, businesses coming and going?  Thanks  

All commercial (5 units +) loans I know of have a max of 20-yr term with 5 year call / adjustment in rate.  If you have to get a 30-yr to spread the payments out more to maybe break even, no way.  Sounds like a deal for someone seeking losses or without knowledge.   You can earn 5% about anywhere without the hassles of tenants and buildings.   Figure out what will work for you, educate the seller and see if they come down.  Otherwise definitely move on.

I wouldn't be too worried about 0 checks being in there on a Saturday.  Hopefully the previous owner provided you accurate rent rolls so you kind of know what to expect.  Definitely be on them the day after the late date.  My late date is after the 5th.  I had a drop box at one of my multi's once.  Someone fished em out one month about 2 yrs in.  No $ lost except for a few stop pmt re-imbursements to banks but what a pain.  Changed to giving the residents deposit slips to put in the local little bank down the street.  Small town, small bank that doesn't mind even if the tenant doesn't have a deposit slip.  If that's possible for you, it's working great for me.  They can use cash if they want to and they get a receipt from the bank directly.  I see online who deposited what basically in real time.  17 less units of pick-ups, cash, envelopes, receipts and deposits to make!

I would go ahead and place the craigslist ad with an anticipated available date of mid-Dec.  Congrats on having a paid-for house @Jason Krawitz ! That allows you to have a key ingredient to finding a quality renter - patience!  A couple things.  Pre-screen your craigslist inquiries via anonymous e-mail. Ask them to tell you how many folks in their household, if they have pets, etc in your ad.  People that don't follow basic instructions in their initial e-mail and answer the ?s are red flags.  Get to know them and their situation a bit thru e-mail and later phone calls then schedule a specific showing time.  Do a couple more in 15 or 30 minute increments if you like.  I don't do open house showings.  You never know who will walk through and it can be a massive time-waster.  Thing 2 is, I don't think you can accept applications and place them in a big pile waiting for the best one to come along.  Normal practice is to accept the first applicant who meets our minimum qual criteria.  Goes back to pre-qualifying before the showing.  If all else fails, you do your move, get through the holidays and worry about it in January.  You have patience, remember?! Good luck and pls keep us posted!

@Steve Salvatore congratulations on owning several properties with no debt!  Can you share a little bit how you did that one?  The peace you must feel having that.  The CF!  I owned a house free and clear for a little while once and it was amazing.  I might just save up via my cashflow and pay cash for other investments.  I understand having the bug and wanting to buy buy buy at current favorable rates also, though.  If you really want debt to accomplish your goals faster, I have also looked into portfolio lines of credit.  It looks hard to untangle and unburden specific properties when you want out to sell or do something else. Please try and convey a little bit about what it's like to own RE free and clear! That's something most of us have no experience with.