All Forum Posts by: Al Pat

I would recommend to NOT do that. This basically ties you down, no matter how enticing it may feel. people will move when they are ready to move, with lease or no lease - there is not much you can do. But on the flip side, you cannot make them move while they are in lease, you technically can do but will have to jump through hoops. Now the main point, you can not raise rent unless you out 3-5% rent escalator in your lease. I would say keep renewing lease when it is up for renewal with normal increase to offset your property tax and insurance increase every year. I am changing mine to a month to month lease for most part for flexibility and seeing how it all went with COVID, even though I didn't have non-paying tenants.

@Al Pat haha...disregard, didn’t realize it was an old thread.

@Johnny McKeon this is actually a great deal. Typical bridge financing is 25% or more down payment and about 9-12% interest rate with tons of other fees and it’s interest only.

@Mark Gaskins Don't take the ARV from wholesellers, they inflate the numbers to a degree that it doesn't even make sense. Most pry on out of state people because good properties don't stay in a market as local investors snatch them up quickly. House in "C or D" neighborhoods are often presented and compared with the ARV of "A" class. You will never get that.

Now regarding your property, can’t provide accurate advise since you didn’t mention pertinent information on price, size of the units (bedrooms/bathrooms), build year and town or county where it is located. I stopped buying site unseen in this market because all you end up getting is bottom of the barrel properties in this hot market.

@Supada L. Also need to be careful buying site unseen. I’m not sure if you aviaries the property before purchasing. Drive way fix is need but enough ppl said it on this thread so you got that. What other expenses are making this negative cash flow? What was your targeted free cash flow after all expenses?

Keep all security deposits in one account separate from their rent accounts. However, it also depends how your properties are held, like different LLCs?

@Julia Thompson send me a DM.

I own properties in Douglasville, they are always in demand and have appreciated decently. Since you are out of state investor, go where you get good return. Atlanta is booming and it's only going to get better.

I have been contemplating this myself for a while. Every time when I have a midnight emergency, its about leaky water heater that is about 6+ years old. Do you wait to replace water heater till it fail or you have a system of replacing it when it is about 6-7 years old to avert an emergency and treat it more like a planned maintenance? On the other hand, some of my units are still going strong after 11 years with the old water heaters. The ones that are failing were put in service by me about 5-6 years ago. Some must have changed in how they make them these days, but I don't like getting these calls, I rather do it on my own schedule before it fails. How do you all with multiple properties deal with this for peace of mind? I have multiple properties so, will have to plan carefully.

What is the best app to keep track of expense receipts and images of it for rentals?