All Forum Posts by: Alecia Loveless

@Mahender Bist Just get a good umbrella policy and forget the additional LLCs and the headache associated with them.

My state is relatively inexpensive in these matters and charges $102 annually for an “Annual Report” which is nothing more than paying to verify your contact information annually. Then I have to file a tax return for my LLCs. Which is another added cost.

I had a legal team suggest I move all my properties into a much more complex structure for estate planning but I think that’s a total waste of time and money.

Simple is often better, especially when starting out.

@Jed Butikofer You need to find a market that has decent cash flow (think $200/unit/month) and become an EXPERT on that location. Then you should be able to do ballpark calculations as soon as you identify a potential property.

There are still many markets this may work in, just not necessarily the ones you have already lived in.

You may find secondary or tertiary markets work for you. I invest in small markets where the largest town has about 8000 people.

A more urban market doesn’t always mean the best returns. Anywhere that has consistent or slightly growing population and a decent job supply may be a good fit.

@Jonathan Greene Buy 10+ more units of multi family.

Complete two heating system renovations moving from me paying for the heat to tenants paying their own heat.

Complete a bathroom renovation in my personal residence.

@Gustavo Delgado With $75K invested I can get a 4-6 unit apartment building that will cash flow $200/unit every month. So $800-$1200. I will get tons of tax benefits and the tenants will pay down my mortgage each month.

I will get great appreciation growing my equity over time.

Yes, I do invest in other things but I still think real estate is superior and has better benefits.

@Greg P. Hi Greg, I’m still relatively new at this, only being involved in real estate investing about 6 years this go round. I’ve been doing fairly well with my purchases and they are appreciating nicely.

That being said I’m only averaging about $225/door.

Maybe in different markets you could find $300/door but I think it is going to be difficult as a beginner.

It’s going to take you a considerable amount of time and effort to reach $350,000 per year.

My average rent is about $1100/month.

You might be able to find a lower price point per unit than I’m at but it’s a LOT MORE WORK to have low quality properties as opposed to nicer ones.

I’d recommend starting slow with one 2-4 unit using leverage and see if you even like being a landlord.

Then buy a second. And after a couple of years if you are enjoying it start to scale bigger or faster or both.

@Jackie Liu I have a table in my lease that lists all the utilities and then they are marked as to if the tenant pays them or the landlord pays them. This includes, water, hot water, heat, air conditioning, cable, security system, snow removal, lawn care.

In my area it is not customary for the tenants to pay for either the water or the sewer. It is just a cost of doing business for the landlord. I always account for this expense when I analyze a property.

@Raju Penmatcha I agree with Kerry. My appreciation markets do not cash flow as well as my non-appreciation markets.

Once you find a market that works for you I suggest you become an expert on the market and the area. This will help you determine which deals are best.

@Trevor Davis Serve the notice and then get help.

Make sure if you’re allowed to post it on the door (assuming the tenant doesn’t answer when you knock) and take photos for evidence of the notice posted on the door. When applicable I try to get the picture with the unit number right next to the document.

In New Hampshire there’s two notices you have to post prior to the start of actual court proceedings, several days in between notices. I’ve done the two postings but haven’t yet had to go to court.

Depending on your state you may or may not be allowed to accept a partial payment during the process. It doesn’t sound like your guy is even going to try.

@James Harryton I have been filling up a building with high quality grade materials and amenities. My prices are a bit higher than market value.

Every time I have listed a unit I get tons of Facebook trolls stating that I should be ashamed of myself and that my price is too high.

When I rented the first unit in March I landed a quality tenant in the first 2-3 days.

When I just rented the final unit about a month ago it took about 20 days to land a solid tenant.

I think if your property has upgrades that make it worth more you may just have to wait a little longer as it seems the overall rental market is taking longer.

If your property does not have additional upgrades that make it worth more on the market then you likely need to drop the price.

@Andre Brock My contractor has been bringing me leads. He works with many investors and hears about things they want to sell way before they’re ready to list them with a realtor.

My last deal was a 6 unit. I put 20% down through my local bank on the first mortgage. I needed $35,000 for a new heating system so the bank gave me $28,000 (80%) in a business loan for 60 months which has no prepayment penalty. I took a 3rd loan of $45,000 from a family member on a 36 month non-recorded loan to help with the down payment costs.

The deal cash flows minimally initially then after the second and third mortgages are paid off it becomes a cash flow cow.

Network, network, network.