All Forum Posts by: Account Closed

I've had experience with both Roofstock (bought 2, sold 1) and HomeUnion (bought 4) 

Hands down I'd go with Roofstock. 

I would have done all my business with Roofstock in the past, but did not know about them until late.

The 0.5% commission is the main reason, plus they pay for the home inspection, have a 12-month guarantee on 90% of the rent 45 days after closing if the property has not leased. 

HomeUnion is good as well but the 3.5% commission is a killer on the expenses.

My insurance premiums for my Alabama properties. 

Pinson House - $611.26

Fultondale House - $635.56

Grayson Valley House - $716.56

I only do bare min. on the liability that my PM requires.

Also, the insurance company I use grants me up to 4 landlord policies and I can bundle for a discount as I do my auto and residential insurance with them as well. 

And finally I pay in full for more discounts.

Memphis currently has 1,120 rental listings, while Birmingham has 1,055 listings. 

I like your plan Nathan! Thanks

I'm planning on retiring from my current career in 2023 when I turn 53. That year also is the year when our residential property and car will be all be payed off.  

I'll have a pension of about $3,000 a month and our properties after expenses (and when there are no repairs or surprises) bring in $2,610 a month. 

So, $5,610 a month to live on, which is way more than enough for our lifestyle. (We are very frugal). I also have over $100K in stocks and MF's as well that I will not touch until I have to.

Again, that is if all goes to plan as the rental income is not very consistent in my experience. 

I'll probably never fully retire as I plan on working part time, just looking to downsize on the work load and hoping my rentals can even things out on income for expenses.

So, I hear many times, I will live off of the rent from my properties.

That seems to be the goal for many.

It’s such a variable income with repairs, vacancies, rising cost of insurance and taxes, declining rents, etc. I know you set aside percentage amounts to cover such expenses, but do you make enough on the rent to have the lifestyle you want?

You add more properties to make more income, but with that comes more expenses and chance.

I’d like to hear stories about those of you actually living off the rent right now and what your experience has been.

Do have plenty of cash reserves for repairs and emergencies 

Do have your properties with the same insurance company as your residential and auto for a bundle discount. Some insurance companies allow up to 4 landlord policies (used to be 5 until COVID)

Do pay your rental property insurance premiums off for the entire year instead of in escrow payments for possible insurance discount.

Do at least 25% down (if financing) to find a loan, and buy the credits for the lowest interest rate.

Do have property management from a well vetted PM as they know the housing laws and can save you many headaches. Check their rates, lease fees, lease renewal fees etc.

Do direct deposit of your rent collection and contributions to your PM for repairs from that bank account you just opened and never touch the income as you save for the next property.

Do a spread sheet on all your properties as you accumulate more to keep up with passwords for log in to lenders, PMs, insurance, etc. keep track of cash flow, property taxes and insurance (the fluctuations of these benchmarks will give you the information you need to make decisions on raising the rent or not.

All 3 of my Alabama properties have been occupied and rents paid in full, no problems.

I would look for a pre existing performing (good payment history) note from a bank or CU or a web company platform that services this niche.

Basically just become the bank and take over the collection of the loan.

Just be aware that the forbearance period is trending upward in 2020 where people can file for extensions up to 12 months on making payments, so like anything else when investing, there are risks.

Credit score or FICO score can get you approved. No big deal getting approved, the real fun starts after you find a property and then they want...

W2 tax returns

Pay stubs for two full months

Two months of statements for the accounts you will use to fund the loan.

List of assets and debts 

Statements from the accounts to be used to fund the loan

Money in accounts need to be seasoned, showing no large deposits that will be questioned.

Cash reserves 

Property appraisal 

You’ll need to do at least 25% down to even find a conventional loan.

Then pay more for the credits to get a low interest rate on the loan.