All Forum Posts by: Al D.

It does not matter what any of us would pick. What matters is that you know what the pros and cons of each scenario you are looking at are, and - once you have compared all data - you pick the scenario that works with your goals. In general terms: 15% down is great - compared to 20% - if you are looking to leverage as much as possible. Is that your goal? But: 15% down compared to 20% down probably comes with a higher interest rate and (perhaps?) additional origination/points. That would mean coming up with more money than just the 15% at closing anyway, AND paying more per month for the term of the loan - make sure you’ll still have positive cash flow. But this point is where I do not have enough data. I presume that your 15% down loan will come with Private Mortgage Insurance payments - I expect that it would. Again, you must make sure that you will be able to cash flow with your monthly obligations. But since you asked: if I had the full 20% on hand and would avoid PMI and get a lower fixed rate for the next 30 years, I’d go with 20% down. It’s just me. Other people are all about leverage.

There is useful information about Wisconsin security deposits refunds from page 8: https://datcp.wi.gov/Documents/LT-LandlordTenantGuide497.pdf I am not familiar with Wisconsin law by heart, am not a lawyer in any state, and the following is my general advice to anyone in your situation: 1. Assuming you followed the law, you should not have anything to worry about. I trust that you can back up all claims with proper evidence. 2. If you did not follow the law, the tenants may have a claim to their security deposit - but that should be it, as I did not see any penalties prescribed in the link above. 3. If the tenants decide to sue you - I mean, if they actually sue you, and regardless of either 1 or 2 above being the case - counter-sue them for the actual amount of your “damages.” That includes what sounds like breaking the lease, if I understood your post correctly. Of course, your case would be much stronger if you followed all laws in the first place. (a) Your state may/may not allow additional (per diem) damages for the time that the property was out of service specifically to deal with the damages, but not if the tenants left before the expiration of the lease and you are already including that in your “damages” - no double-dipping. It sounds like you have a case where you directly lost a potential tenant due to the conditions of the property. Hopefully, you have something from that prospect in writing about their “disgust” with the property that you could show in court. (b) Unless you are otherwise employed in “construction,” I do not see how you would be able to quantify your own hours of labor in terms of a dollar figure. But, assuming your state allows for this, add your labor cost. (This is where hiring a contractor is beneficial if you intend to go after your “damages” in court - you have an invoice with a dollar figure on it.) (c) If you “overstate” the amount of your “damages,” you may p*ss off the judge - this part is not at all scientific. 4. Once in court the day of, there will typically be a chance for both of you to peacefully reconcile before going in front of the judge/commissioner. That is where the amount of your countersuit may give the tenants the final pause to settle with you - they may lose more than they expected to get back. Just mind 3.(c) above. 5. It is my understanding that it does not matter what - if anything - your lease says about conflict resolution between yourself and the tenant. I am talking “small claims” type of court, not a jury trial here. But, as is often the case, they may be blowing smoke in your face with their threat to sue you. However, if you did not follow the law, their smoke may be toxic to the security deposit you are holding. Again, in my non-legal opinion, this would be the most they’d get back. Also, you can try bringing up a suit first. If you win, you must consider the chances of collecting against these tenants - you know their employment situation, etc. If you cannot afford to speak with an attorney, the small claims’ clerk may be of assistance about court procedures - they cannot give legal advice, tho. None of this is legal advice. You should always speak with an attorney for legal advice.

If all you actually have is $20k, I don’t know if you should be buying investment real estate, unless it’s also for you to live in. I think that’s just risky. 1. Your first scenario of “DP for multiple 50k apartments.” Judging from some of the podcast guests’ stories on BP, I guess it’s possible. I’ve never done it. And I am presuming that you mean apartment buildings, rather than multiple properties that would be SFRs - different financing options. 2. “DP for a single family home.” If I were to do anything RE related in your shoes, this would be it (from your own options.) But you’d probably have to look out of state. 3. Since you also asked for suggestions: I’d suggest looking at “house hacking,” where you buy a 1-4 unit property in which you’d live as your primary residence and either: (a) get tenant-roommate(s) if it’s an SFR or (b) “real” tenants if it’s a duplex, triplex or quad. This option may allow you to use a low DP, lower interest rate than for an investment property, and - depending on your income-to-debt ratio - may help you qualify for the loan by using 75% of the current/existing rental income from the subject property. I believe there would be PMI payments, though. But, depending on the specifics of all details, you should still be able to cash flow (positively) - otherwise, I’d still advise against this. The reason I said that it’s risky if $20k is “all” you have is that you have to make sure that you can come up with funds for unexpected repairs in a hurry. That’s just my take. Others certainly have different risk tolerance.

My apologies, Diane G. , for appearing to not get your joke. Thank you for pointing out that issue in me. But please learn to read critically: I asked you what exactly there was to LOL about. That should suggest to you that I at least understood that your comment was intended as a joke - if only to yourself. If I were the OP, I would have found your (joking) comment condescending - and certainly not helpful. But I am not the OP. Perhaps the OP actually appreciates your comment. I spoke for myself. And then you answered (me) in another condescending way. I can take it - just clarifying for you how your retort looks to me. I don’t know how many of your over 900 comments are jokes, facts, or in any way useful to the topic at hand. Perhaps you’ve helped some people here with incredible advice - I have no idea. I simply did not find your original comment in this post anything but a condescending joke - I hope this part is now clear to you. And considering that the OP (clearly, for anyone with a conscience) needed support, I decided to provide it, again, now “thanks” to you. I love this forum. I am at a point where I seem to put in more than I get from it. And I am ok with that. I am still learning something. I did not know about BP for years after becoming an investor. Sometimes I - with my experience - will still need advice from others here. I expect that when I ask for it, I won’t be laughed at. None of us knows what’s really, fully behind the name and the story when a poster asks for help. Let’s try to be part of a solution, please.

For those who may not remember, today is MLK Day.  “Life’s most persistent and urgent question is, “What are you doing for others?”  -MLK, Jr.  I was not planning to do anything for anyone but myself when I woke up today.

But I must ask: What exactly is there to LOL about here, @Diane G.?

I, for one, cannot see your comment being in any way helpful to this discussion.  In fact, to me, your words seem condescending to the OP.  You must know her personally, I guess.

I probably was not “landlord material” either when I first started in this business.  No one told me that, though - besides myself.  I dare anyone to tell me that now; I’ll LOL at them.  I had no mentors when I first started.  I did not inherit anything.  I jumped in.  I had fears.  And because of my professional background, I knew they were real.  I’ve since mentored others on this “mental obstacle.”  It’s real for many.  But one doesn’t have to be born a landlord.

@Kristy F., “Turn your wounds into wisdom.” -Oprah Winfrey.

Josh C. , our flip just west of the State Fairgrounds got hit three times in December. It was a death by a thousand cuts: 1. All kitchen appliances (did not have a refrigerator) and some staging stolen in the first one, along with vandalized furnace (what did the mother board do to deserve it?) and one kitchen cabinet. Majority of the staging was left behind in the back yard, and was put back after the first burglary. I had the project manager install dummy cameras. I also told him to get an alarm - whatever the cop who took the report suggested to him (the PM had allegedly wrote down the name of the system, and would order it.) I was not yet worried about replacing the furnace, as we went all pex in this major rehab. I suggested we take it off the market until all security is on - and return what’s left of the staging. The RE agent said we should stay the course. We did. 2. All staging stolen in the second one. They also stole the downstairs 1/2 bath’s toilet. They removed the electric meter (possibly because they saw the cameras) this time. The PM discovered that the meter was removed after the cops left. Days later, the cops came back to look for prints on the meter - none found, but I was impressed by the effort shown by the PD, as this was an exterior item, exposed to the elements, and, from my recollection, has a porous surface. I no longer waited for the project manager to get an alarm after this hit - I ordered a system myself to come to his house for him to install it - should have been simple. My partner and I again suggested we take it off the market. We stayed the course again, but did not replace the staging. 3. With the electric meter still off and the security system left in the house unconnected (reportedly, because it would not connect - though, under normal circumstances, it can work for a number of days without external power,) this time, the burglars stole the system’s base upon their entry (it was not hidden, as I had instructed the PM - but it was still useless, because it was not turned on.) It was also discovered then that the AC was gone. As additional proof of competency by the PM, he said it may have been gone during the first or second burglary - he volunteered that he didn’t check. I like honesty. The listing was taken off the market. The stager said that all of his area stagings have been hit multiple times in December. A neighbor got the license plate on the third burg - stolen vehicle. Each cut has been below our insurance deductible. The PM gets paid share of the profit - if any is left. Real bargain. Sorry, not an actual “property management” story, but since this post has gone into war stories, including in Indy, I thought I’d share.

I am not aware of any Ohio law that mandates that the landlord provide a stove or refrigerator. I provide both of these for all my Ohio properties. These Ohio properties are in good areas (B and A class. That is all I have in Ohio.) When I look at rentals comps in my area of Ohio, I am yet to see any listing that expects the tenant to bring any appliances beyond washer and dryer. However, I do not provide kitchen appliances in Memphis, for example. That’s in C areas of Memphis only. My B/A Memphis properties, on the other hand, do come with stoves and refrigerators. I’ve heard it said that Memphis tenants are used to moving with their own kitchen appliances. I have not heard this about any part of Ohio. But this does not mean that in some parts of Ohio it may not be typical. So, this begs the question: are your intended Ohio turnkeys in good areas? Are these areas where tenants expect to have certain appliances provided by the landlord? You can look on Zillow for rental comps to get an answer on this. Even if it is typical for landlords not to provide kitchen appliances where you are buying “turnkey” in Ohio, I’d bet that these are not even B class properties. I would strongly advise against buying anything less than a B for your first investment. And I presume that you already know that not all “turnkey” are created equal. Some should be ashamed of what they call “fully-rehabbed.”

If they want your money - and they do - they’ll likely answer all the questions you may currently have. I don’t know whether they’ll still answer questions you *should* have to those answers. From what I see so far, unless you have disposable phone number and email, I wouldn’t bother asking them questions. A good business concept should not be to put up a public investment opportunity website for five months in “beta.” There is nothing to test here other than people’s potential stupidity. Even if the people behind this site have legitimate goals, the state of their fundraising website tells me everything I need to know to not to invest with them.

What Christina Skinnell said. And the domain name is registered to one Brandon Washington as of 8/15/17, prepaid for one year.

Depends on what you may need. Try @Denise Evans.