All Forum Posts by: Alex Cotton

If they are quality tenants I wouldn't rock the boat too much.  

That being said you can certainly require them to sign a new lease at the end of the month - the same month to month perk for the tenant works in your favor also in this instance. I would only look into this is you think it will take a while to get them rented back out. What are the vacancy rates in your area? They may be more apt to take a longer lease at a reduced monthly rent. 

Good luck!

@Brad Meyer, welcome to BP! I am starting out with a similar strategy in my area. Make sure to check out the podcasts and @J Scott's books on flipping houses and estimating rehab costs. I used his estimating rehab costs book to put together the scope of work on my first flip and get a line of credit from a local bank. Best of luck!

You will likely have better luck looking off market. Here are a few suggestions: call landlords looking to rent their properties on Craigslist, call a few property management companies in your area, and/or work with your city's assessor office to get a list of all the multifamily properties. Good luck!

@Dan Jones - $1250 seems a little high to me for that area. The rents don't jump up proportionally between a 3 to 4 bedroom. See if you can find any comparable properties on Craigslist or rentometer.com. I definitely agree with @Austin Davis on exit strategies. Best of luck, let us know how it goes!

I recommend checking Craigslist and rentometer.com for rental comps. As for if its a good deal, what do other investors use for the monthly rent/purchase price % rule of thumb? If 1% is common in your area, then it seems like a good deal. If investors are looking for properties on the 1.5-2% side, then it might not be a good deal. Try out the bigger pockets calculators for a more detailed analysis. Good luck!

Welcome to BP @Matt F.!  Renting out your old primary residence is a great way to get started. Best of luck!

As long as you've accounted for all the extra expenses (cap ex, vacancy, management), GO FOR IT! The biggest hang up for most people that want to get into real estate is pulling the trigger on their first property. Try out the BP calculators to verify your numbers with all of the possible expenses. A couple other thoughts... You're right about at the 1.5% rule (Monthly rent = 1.5% of purchase+rehab). Is that typical for other investors in your area? Are you comfortable with the area? I'd recommend a good area that will bring in good tenants for your first rental. Good luck! Let's us know how it turns out.

I agree with Sean - definitely don't discount the power of a local bank. I am having 100% of the rehab costs financed on my first flip. As for how much to expect to put down, pick up the phone, send some emails. Every area and lender is different. Bigger pocket has a directory or HMLs: biggerpockets.com/hardmoneylenders Good luck!

Welcome to BP @Susan Miller! I am originally from West Michigan and currently live in Iowa. Make sure to check out the podcasts. Let us know where you end up investing. Best of luck!

Welcome to BP @Cody Guhl! It sounds like you have a great knowledge base to get started. I invest down in the Cedar Rapids area. Best of luck!