All Forum Posts by: Al Pat

@Dante Pirouz, My strategy is to count how much all my properties are bringing in each month and how much I retain after all expenses. If 15 properties meet your goal then that’s it. If 15 PAID for properties allow you to meet your goal of monthly, let’s say $16,000 income goal then you work towards it. All depends on your WHY and HOW. Set your monthly or yearly income goal and work towards it. There are more than one way to skin a cat. 😄

@Michele Sidney This being your first deal and how you presented numbers, you need to reconsider. If you stumble on very first project then getting back would be hard. No remodel goes smooth. As soon as you open walls and ceiling, more issues come to light such as water damages, old out of code plumbing and electrical etc. at stated rent, it’s not recommended to pursue this property. In real estate you make money when you buy it at right price.

@Josue Vargas for about $50 cash flow? That would be way up with single incident of roof replacement or HVAC replacement. Even a water heater replacement will more than one year’s cash flow. Unless you are getting over 15% cash on cash return, withdrawal from 401k would be unwise decision.

I would advise against touching 401k for RE investment even though it may be tempting. You want to create multiple streams of income and they may not produce equally but provides safety net. Leave your 401k alone.

@Tina Jenkins your first stop should always be your local bank or credit union until you reach the point in your investing career where you have amassed enough properties that disqualify you for traditional loan options. You should be good for first four without any issues if you have good credit and income. 

I screen and accept tenants with 650 or above with monthly income of 3X the rent Gross or 2.5X net. No eviction on the record.

 And that is correct - Only one partner on the loan but name of both on the deed (title). So ONLY one is on the loan but BOTH on the deed is what I have done as explained in my first response. Person on the deed signs the paper at the closing for warranty deed.

@Abhishesh Acharya At the time of closing, you can have your partner’s name added to the deed. The same goes at refinancing. S/he doesn’t have to be on the loan. Speak with the closing attorney, it can be done. I have done it twice. This way, when time come to sell the property, both of you will have to sign at closing. Even at this closing, both of you will have to sign the papers. Hope this helps, I’m sure some attorneys preferably in GA will chime in to offer more guidance.

@Samantha Oakley You should report it now. Those glass tops are pretty strong so I am not sure what caused it to break. Technician will have to take a look at it and evaluate. Often time replacing those cost just as much as buying a new one depending on a brand. Also, if you have been good tenant and has been living there for a while he may cut you some slack but it is going to cost someone so you both will just have to figure it out. 

 The goal is to bring the rent to as close as you can get to market rent. $400 in this case. Thank you @Thomas S.

@David VanWinkle I personally don’t like estoppel, like you said if they are month to month then let them know of your intentions well in advance, let’s say by February and give them 60 days (more than usual 30 days). However if they choose to stay then raise rent by $200. Give them time to think like a week or so. If they agree then raise the rent by following month. You can say if you stay then instead of $1200 per month, you will sign month to month lease for 1100 with annual review of rent in each September (time of property tax review).