All Forum Posts by: Alexandre Marques dos Santos

@Robert Neal

My personal #1 factor is return. Fully paid what is the expected return?

Then IF the return is good i will look at other factors, appreciation, amount of investment, type of tenant, city, etc.

I do fully paid so its standard return. Leverage or not will be about my credit, so its easier to calculate without and later i will decide what to do

@Erik Donough

Heloc is a easy access for money while you prepare yourself for another acquisition. Although Retirement is giving you a better return, you cant access it easily without incurring in penalty.

So better off putting into Heloc, paying down until you make enough to buy another property. The money will save you interest and you will start saving more and more monthly. That said you will quickly pay it fully.

Good luck

@Marc Estepa

Theres a false statement by he landlords “ home must be returned in the same way he was received”. We all know about wear and tear. So not even law believe in that.

If you rent an apartment and keep it closed 36 months, even not living there, color will fade, carpet will smell and on...

On the other hand, i feel for the landlord. The 5-7 yrs is a tax depreciation process and not necessarily we change carpets in our properties that frequently. At least i have properties with 6 yrs and carpet is still holding very well.

I was curious about the cleaning process. Maybe the smell is not in the carpets. The fact the landlord allow you to have pets, i don’t believe its ok to leave it with smell. So i am curious about it. Have you thought about cleaning air ducts? Maybe the smell is there.

Anyway, even if the smell IS in the carpet, i don’t think its right to charge you fully the value of replacement, but if the smell IS there, then you could argue to contribute a bit of the replacement cost.

Sorry if i sounded confusing.

@Helen Hernandez

4000 doesnt get you into RE. You can start working for someone and save more. RE is a business you can definitely leverage others money, but at least you need reserves while some down money

@Mark Oliver

I always give 30 days service guaranteed to my new tenants. This gives them enough comfort that things are maintained well and gives me a inspection for free 🙂

I think some tune ups are necessary. Yes, you are right its annoying, but they are paying to have the service working. Put yourself on their skins.. would you complain?

All the complains i read above seems reasonable to have it fixed. Not sure the AC, but i would take a look to see.

Good luck

@Shannon Robnett

Very good description.

Would add the incentive i noticed in some cases...

Some prop managers rent and “give” 15 days incentive, 30 days, rent free. So, as they are paid by the rent value, the incentive comes out of landlords pocket.

@Juan Alvarez

Not necessarily. Sometimes he offers to pay buyers fee. He avoids full brokerage fee ( btw 5-6%), and accepts to work with buyers agent paying 1/2 of that. He saves the other half.

Only in the case he expresses he wont pay even buyers fee, the realtor should come to you to discuss the matter.

At this point i would believe he IS paying as the realtor did not disclose that to you.

@Ibrahim Yamini

The formula you are looking for is not accurate. The amortization grows over period, started small and year by year grows. Its not a linear growth. That happens cause the interest over debt reduces ( you have more equity) while you pay the same amount every year, resulting in a bigger part driven to amortize. So, for this reason, equity in the first year is smaller than in the 2 nd and so on.

More important, I noticed you are working with small downpayment. Doesn’t seem to be realistic.

Nowadays its quite hard to get less than a 20% downpayment in an investment property. Having said that, for every 250k property, you will need a 50k downpayment.

Not sure as well if you will be able to get 10k (rounded up) in every single house every year to get into a new deal. Interest will grow and you might need capital to pay for it. Unless your house that have enough free cash flow pays for it, it wont be feasible. Appreciation does not help on this item...

I think you twisted tour goals. Try to work looking at finance x cash flow and with it what can you achieve, not the way around.

@Chris Hadley

I live in NJ, but all my RE are in The woodlands and surroundings....

Does that counts? 😁

@Mason Jeffries

Have you thought of putting a sign in your car and park it outside the house?

Maybe a lemonade stand with balloons will also help. Thats just for weekend though