All Forum Posts by: Alexander Lang

I also use cozy and love it. My tenants love it as well.

Not sure if anyone has tried "Stessa"? I have heard @Brandon Turner on the podcasts refer to this software as a show sponsor, but I have not tried it myself yet

Personally I think it is fine. My rental is like that as well due to the gas line. Tenants didn't say anything nor really care (yet)

I'd maybe just leave it be and if it gets brought up inform them it is due to..... But I don't think this would be a deal breaker for finding or retaining a quality tenant. 

I second the method that @Cassi Justiz practices. I typically save around 15% or so to put towards reserves, but it really depends on the property. I didn't start keeping any cash flow until I built up around $6/7k. Even at that, I am now just saving the cashflow to put towards the next properties down payment or its reserves. 

Yeah I would include that as if it was another item to budget for. A very rough example below

A basic Example:

Rent: + $1000/month

Mortgage/insurance/tax: - $500/month

HOA: - $100

Vacancy, CAP EX, Maintenance, Property management: - $100

$1000 (rent) - $700 (budget/expenses) = $300 cash flow

That is nice if you have an HOA as those often do cover large exterior items like Roofs, driveways, siding, etc... That should lower your budget to save for those CAP EX items greatly.

Hi @Jose Huijon, Thats exactly how I started as well!

I would also make sure that you run your numbers for your budgets on Cap Ex, Maintenance, Vacancy, and Property management (even if you will self manage yourself) just to ensure your house will cash flow positive. Depending on the age and state of the current house will determine how much you should likely budget. 

I myself budget about 3% for vacancy, 6% Cap ex and Maintenance, and 10% property management (which I keep myself since I self manage) But these budget figures are for my own property, and may or may not work with yours. 

Best of luck!

Thanks for the info on HOAs @Amber Gonion. 

definitely good to know this when reviewing the HOA guidelines and budgets

Thanks so much for your insight @Corey Hawkinson. Yeah I have heard of folks getting burned on their numbers when the HOA decides to replace roofs, siding, driveways, etc... Ok that is good info to know since I am looking more into this lately as an alternative to my SFR' and small multi's

@Corey Hawkinson, how do you like investing in Condos? 

I've always been hesitant in dealing with HOA's since they can raise the fees at whim.

Are there certain things you look in an HOA that help you decide into your deal analysis?

I've looked into Condo's and Town-home's but keep getting wrapped up in the high costs of the HOA dues, as well as what really to look for in the HOA's financials.

I know when I was starting out I started by paying down my car loan aggressively then snowballing that into my student debt while taking then next year or two read a few real estate books and listen to all the BP podcasts and that has really helped me out. I am now paid ahead similar to @Adrian Rae, and now just make my minimum payments and just take my snowballed car/debt payments ($500/month) and put it into a new checking account each month for RE investing only. 

Also make sure if the company you work for matches any 401k contributions that you fully utilize that as well! Best to diversify so all your eggs are not all in one basket.

I agree with you @Keith A., this is looking really bad.

Minneapolis council passes limits on tenant screening by landlords