All Forum Posts by: Alexander Felice

usually new investors mis-estimate actual costs.

for isntance, you say you'll make $100 CF. is that rent - PITI or does that include all expenses. have you used the 50% rule? (rent x .50 - debt service = CF)

also, have you found comps for you house, or are you guessing its value? You should also calculate what it would cost you to sell (7-9%)

If you run these numbers properly then it'll be easier to decide what to do. $100CF when all expenses are calculated might make it ok to keep. If you rerun the figures and you're negative cash flow, AND you can make money by selling then the decision is made for you. 

Everything you see on TV is 100% accurate with no added fluff for entertainment factor. Everyone on BP makes 60k a month flipping houses. 

#sarcasm

It's a TV show Jordan. Its value is on par with Jersey Shore, and Honey Boo Boo. 

For future reference. I put in all my leases a clause for this specific situation. 

The lease is 12 months, rent will not change during this time, if tenant is asked to renew lease then rents will increase 3% at that time. This sets expectations between yourself and the tenant. 

for this instance, I might be inclined NOT to raise rent. If you have 1 month of turnover it'll eat away any increase in profits you may have. Especially since you say this tenant is good, and you know of some animosity. As Stephen mentioned you may be making the right business decision by raising rents, but tenants don't think in terms of business, emotions will come into play. 

I say take the guaranteed $15,600 (1300x12) over what could potentially be $14,740 (1340x11) or less. 

I take the security deposit and first months rent WHEN THE KEYS ARE HANDED TO THE TENANT and the lease starts.

I will hold a client for 1 week prior to that and the fee is equal to one weeks rent equivalent. it's non-refundable and is a separate cost. I will keep taking apps, but no credit/background checks if the unit is on hold. 

nothing gets held without cash in hand. The key is to be ethically/morally upstanding but preparing that the prospective tenant won't be. 

@Brian N. I'm just south of you in Fayetteville. I don't know much about your market, but I have some friends doing well with Buy and hold in Raleigh. They do tell me there is there is a lot of competition (duh) but they are making money!

Wish you the best!

Was really great to meet you my friend. 

As I said at dinner I think posting on BP and being active is so valuable. We never would have linked up had I just been lurking and not posting. Look forward to our paths crossing  again and hopefully sharing some profits in the future. 

using the match is essentially 100% ROI

most people are going to tell you to use the match, but no more. It's not liquid, the fund options are usually lousy, and they can be costly. 

I take the match and use the rest for REI

1. Cash flow 

2. Demand (Can I rent it fast and to a large pool of potential tenants)

3. Longevity (Will this still be a good property in 5 years)

Duane Gilliam is my guy. 

• (910) 485-8899

as far as mistakes go, this one is probably more embarrassing than costly. 

and you're def not the only moron here. I am also moron.