All Forum Posts by: Blake Morris

Probably someone on here has a checklist, but I really think there are too many variables to consider. If you are renting in a low income area you wouldn't change all the doorknobs just to do so. But, if you are in a high income area and you need to make small changes to spruce up the place, then something along those lines would be appropriate.

I tend to hate brown trim and brown doors. It reminds me of a very old 80s home. But, if your home is in a more historical part of Louisville, then I would love it. It just depends on your homes current condition, price range, area of town, and what appeals to the biggest majority of the type of people you are probably going to be renting to.

I wouldn't have the ducts cleaned but that's just me. I tend to agree with Bill. Only do what you HAVE to do when you HAVE to do it. Other then that you would need to place yourself in the shoes of who will rent your home. Your perspective is to have your home be rentable for what you want to rent it for. Tour your home like you would as a potential renter.

For example: Do you have bi-fold doors that creak and are hard to open? If so, think about bible and cross slider closet doors or mirror slider doors.

Typically a tenant will inspect for cleanliness, and a fresh look. To achieve that you would normally just have the place cleaned really well, clean the carpets and have your place painted. The property manager who conducts the tours would say something like "the owners have lived here for 10 years and took very good care of this place, so you would be living here after the owner, not be the 4th or 5th person to lease this place in 5 or 6 years." If someone gives you feedback like "I am extremely allergic to blah blah blah and I really want to be totally sure that my kids aren't exposed to blah blah blah." Then your property manager, with your approval, would recommend that the owner would be willing to have the air ducts professionally cleaned if it would put them at ease.

The general moral of the story is to make money. There needs to be a balance for everything, but doing absolutely everything imaginable to your home before you rent it....at some point becomes wasted money.

Also, the 50% and 75% rule of thumb certainly applies in your scenario. 50% of gross can be counted on for income if owned free and clean and 75% if you have to pay debt service. These are definately rules of thumb, though, which means you would net approximately 325 per month on average.

If you want to look at it from a mortgage perspective. A lender will count income from a rental property after you have had it for a period of time, generally 2 years. They count 75% of the income above your mortgage payment. that takes into account vacancy and maintenance. If you use that calculation, then a lender would count $337.50. So, if you are excited about your conservative number of $220, then the average rules of real estate investing are on your side!

If you're looking for an experienced property manager, (I have my own lease and manage 235 units in southern Indiana) let me know. I manage privately for family members as well. Let me know if you want to talk further!

Not sure what to do on the SD since they didn't sign anything. But, here is some advice that you can use in the future.

Never accept a deposit to hold something without documentation on keeping it if they back out. Another thing you can do, which is what we do where I work, we do not let someone sign a lease until the unit, or home is ready. When they sign the lease they pay fist months rent and deposit and get keys all in the same day. It becomes effective the day they sign the lease and we prorate their second months rent payment. Also, DO NOT ACCEPT ANYTHING OTHER THAN GUARANTEED FUNDS AT MOVE IN. If someone bounces a check on you, you will spend months getting them out and could potentially never see a dime.

Hope this helps

thanks guys for your input

Why not purchase with cash to avoid closing costs and prepaid monies. Then get a HELOC (home equity line of credit). If you want to get cash out then get as much back out of it as you can to keep as much of your original capital in place. if you want to be more risk averse then only get back 20-30k from your HELOC. It allows you to leverage only how much you want to. Another stellar benefit of a HELOC is hardly any closing costs, if any at all.

hope that strategy helps give you yet another thing to think about.

All,

When getting a loan from a hard money lender I have some questions. First, let me apologize if this can be found on a past forum discussion.

When you get a loan from a hard money lender what is the purchase process like? Do they give you the money that you need and it then becomes a cash purchase using the services of a realtor (if desired)? I am assuming you would get title insurance? Do attorneys come into play to handle the amortization payments? What about escrow? Since you are the owner...someone has to record the deed so just not quite sure how that process would work. There seems to still be costs involved even if you were given all the cash to be a cash buyer.

Secondly, after you get the property and want to pay off the high interest from a hard money lender. do most of you all use a HELOC? or a traditional mortgage?

For some one who has little capital it still seems like you would have to come up with 20 percent either now or later. Because the refi or HELOC wouldn't loan up to 100 percent. I am just struggling to come up with a scenario where hard money lending makes sense.

this is a condensate line. that drip is supposed to happen. no worries as long as its dripping in the hole in the washer box.

Well put William. that's great advice.