All Forum Posts by: Billy Smith
Billy Smith has started 12 posts and replied 701 times.
Post: Do I buy more or buy in higher appreciation markets
- Shawnee Mission, KS
- Posts 711
- Votes 311
This topic is a common one buying class C properties some people like dealing with section 8 more risk staying really busy.
When dealing with more risk you should d be getting a higher cap rate.
You can get good at dealing with this type I am sure dealing with more moving parts. I would guess this is a young’s men’s game. There are plenty of folks that are not young who like this type of investing.
I like A and B areas with lower cap rate but still a good cap rate.
I still have issues just not as many usually, I am on a slow pace to wealth dealing with low debt in my circle of knowledge.
Post: How many rental applications will you accept in a hot market?
- Shawnee Mission, KS
- Posts 711
- Votes 311
I ask questions over the phone ,then have them do a back ground if they look like a winner based on a verbal general info .
I will do keep one more ready but not filling out a whole app with personal info .I guess some people harvest money from apps double triple the cost ?
I charge the tenant same they charge me I only do CASH to run back ground check .
Post: The best way to save money?
- Shawnee Mission, KS
- Posts 711
- Votes 311
Originally posted by @Jim K.:
Give up on the new car and the car payment. Before we got out act together, we bought three Toyota RAV4s in six years. Every two years, new car, new bumper-to-bumper warranty. We told ourselves the most idiotic lies to justify it. Well, we live right next to the service center. Well, my wife's job requires for her to make critical house calls. We NEED an absolutely reliable car.
Seven years later, we're still on the last RAV4. Platinum-grade batteries with a three-year warranty, brake pads guaranteed for life, windshield wipers changed every year, Michelin tires changed every 2 years, oil changed every 5000 miles. Triple-A tow-100-miles membership for $100/year. We have a long-term understanding with a local mechanic, we do business with a local service garage. We live just outside the 66th largest city in America, with full access to Uber and Lyft. Give up on the new car and the car payment.
Agree new cars a huge waste of money ,I did also buy a new Rav4 for the wife ,I drive a 10 year old F-150 I keep it Mechanical great shape, showing rust I don't care .
Post: Good Tenant for the past year. Would you raise rent?
- Shawnee Mission, KS
- Posts 711
- Votes 311
No I never do unless no other option ,you can lose a good tenant over the a small increase some may stay its a crap shoot .
Post: Tenants Who Pay a Full Year Upfront
- Shawnee Mission, KS
- Posts 711
- Votes 311
I had a church pay a years lease up front twice they tore up the deck on the first renter I kept the deposit fixed the deck .I did complete back ground checks on both renters .
Post: Water bill is very high and no visible leaks
- Shawnee Mission, KS
- Posts 711
- Votes 311
Turn off you main water shut off going into the house .Go back to the water meter see if it is spinning if so you need to dig up the water line .Lot of the time the pit with the meter is the leak .
Post: Having tenants 'manage' upgrades/repairs
- Shawnee Mission, KS
- Posts 711
- Votes 311
Once in while it will turn out ok ,the odds are against you turning out well so many ways it can go wrong .
Post: Tenants Who Pay a Full Year Upfront
- Shawnee Mission, KS
- Posts 711
- Votes 311
Originally posted by @Laura Marks:
Originally posted by @Billy Smith:
I have a SFH right now that was paid a year in advance.
The tenants both had a back-ground check, they were approved with a cosigner.
The cosigner was an aunt who is a real estate investor.
The aunt wanted to pay advance since she cosigned.
So, the yard is mowed, had 2 service calls.
I am not sure if I would do it again or not.
This is illegal in KS.
I had a real estate lawyer write up a lease to cover such a way to pay .
option A or B .
Post: Is SFR Cashflow a Myth?
- Shawnee Mission, KS
- Posts 711
- Votes 311
I would /will only buy a S.F.H in A ,B areas only do all the rehab up front .I have contacts to help in the rehab plus my own knowledge can get the job done on a tight budget .Then I fire it up start the rent I keep all my SFH in tight area . I am ready to buy a S.F.H near a property I own I am thinking a discount of 25% to 30%.I figure mortgage around $1100 to $1200 rent close to $1800 .
Post: Out of state investment property - Indiana and Kansas
- Shawnee Mission, KS
- Posts 711
- Votes 311
What part of Kansas the burbs of KC is a safe bet if they are not hosing you on numbers .