All Forum Posts by: Michaael Carpenter

This is how we accept payments. It works flawlessly. We give this letter to all new tenants. Our local small town bank does not even charge us for the service.

In order to provide all our tenants with the best options to make delivering rent payments easier, we have partnered with our local bank to provide a system that will allow you, as the tenant, to choose the method easiest for you, as well as protect your handling of money and ensure a record of the transaction.

All rent payments are to be made directly to our account at Citizen’s State Bank. Rent is not to be paid through lockbox, personally to owners, or at our personal address. Tenants have four different convenient options to choose from:

• 1)Pay in person
• a.Take your check or cash in person to the Citizen’s State Bank branch locations in Moundridge (201 S. Christian Ave.) or Hesston (201 N. Main St.).
• b.Inform teller that you are making your rent payment to Carpenter Rentals, Inc. You will need to tell them your name as well as your residency address.
• c.They will record your rent payment on a deposit slip and give you a receipt for your records.
• 2)Mail your payment
• a.All Mailed payments must be made to the Moundridge branch. Mail your payment (please no cash via mail) to: Citizen’s State Bank
• PO Box 110
• Moundridge, KS 67107
• b.Place a note inside your envelope with the instructions that the payment is for rent due to Carpenter Rentals, Inc. along with your name and residency address clearly noted.
• 3)Night Drop Box
• a.Both Moundridge and Hesston branch locations make it convenient for you to make payments after hours if you are not able to make it to a branch during regular business hours.
• b.Place a note inside your envelope with the instructions that the payment is for rent due to Carpenter Rentals, Inc. along with your name and residency address clearly noted.
• 4)For tenants who currently hold accounts at Citizen’s State Bank you may make a transfer over the phone.
• a.Call the Moundridge branch at xxx-xxx-xxxx.
• b.Let them know your personal account number and then let them know that you are making your rent payment to Carpenter Rentals, Inc. You will need to tell them your name as well as your residency address.

This system is in place to protect you when handling money as well as to give you more convenient options to make your payments. Rent is due on the 1st of each month. Rent payments will be monitored by online banking and any payments made after the 5th of the month will incur a $25.00 late fee. Any checks returned due to insufficient funds will incur a $30.00 fee.

Don't. Have one owner and pay the others what they are worth. If he is an owner and you have a falling out with him, he is still an owner, even if he no longer works on the business. You would still owe him distributions of the corporate profits regardless of your relationship.

Fix it. They rented it with the understanding there is an ice maker in the unit. They expect to continue to have an ice maker in the unit. Happy tenants equals good tenants. It really is the small things in life.

Thanks for your thought guys. Experienced opinions mean a lot. I do not use debt in my primary business that cash flows very well. We also only owe about 85,000 on our personal residence that has a market value of 200,000. So I think utilizing a little bit of debt to speed up our acquisitions will be advantageous since we should have renters without too much trouble we hope that will cover the payments.

I paid $28,000 cash for a foreclosed property two weeks ago. The renovation is going well and our total material cost for renovation is going to be about $22,000. Making the purchase + renovation total +/- $50,000 (all cash).

Side Note: I own a construction company that is my primary business. Our crews were slow and this deal came up so I purchased the house to keep everyone busy for a few down weeks. Total real labor spent (although I would have been paying my employees anyway is about $10,000. This brings the real total to about $60,000.

Option 1: I'm pretty sure that I could flip the property for about $70,000 FSBO and profit about $6,000 after closing costs. Not a great deal, but this project will have served its purpose. $6,000 for one months work in a lower priced area.

Option 2: I could rent the property for $625 in a very good rental market and hold the property long term. The market is great for getting renters but it is located in central KS where the rent price and housing prices are very conservative (cheap).

Option 3: I could do a cash-out refi of $50,000 for 15 yrs at about 3.625% and continue to rent the property at $625. This option allows me to recoup most of my cash and use the equity as my down payment. Having the cash is not a big deal to me because I do have steady income from my construction business, but would allow me to pay cash for other properties that come for sale and then do the same process of renovate, refi, rent...

Thoughts please...