All Forum Posts by: Account Closed

Birmingham, Alabama 35215 (Built 1975)

3 Beds; 2 Baths; 1 Car Garage; 1,200 Sq. Ft. (Class C Property)

Price: $70,000 Rehab: $9,700 Value: $93,000

25% Down

Interest Rate: 4.25%; 30 Year Fixed Conventional

Rent: $905

Cash Flow: $401 (100% into my business account)

Warrensville Heights, Ohio 44128 (Built 1952)

4 Beds; 1.5 Baths; 1 Car Garage; 1,568 Sq. Ft. (Class C Property)

Price: $60,000 Rehab: $9,000 Value: $72,000

25% Down

Interest Rate: 4.5%; 30 Year Fix Conventional

Rent: $950

Cash Flow: $466

Dallas, Georgia 30157 (Built 1987)

4 Beds; 2 Baths; 1 Car Garage; 1,448 Sq. Ft. (Class B Property)

Price: $107,000 Rehab: $7,500 Value: $155,000

25% Down

Interest Rate: 4.25%; 30 Year Fix Conventional

Rent: $1,300

Cash Flow: $497

East Point, Georgia 30344 (Built 2018)

4 Beds; 2.5 Baths; 2 Car Garage; 1,812 Sq. Ft. (Class B Property)

Price: $150,990 Rehab: None; Value: $189,977

25% Down

Interest Rate: 4.875%; 30 Year Fixed Conventional

Rent: $1,425

Cash Flow: $411

Chase Business Account separate from my checking account. Easier to keep track of and makes a separate statements for lenders.

 I opened a business account with my bank to track rent and keep reserves for all four of my properties.

 I wanted it separate from my personal checking account. It also makes it easier to show a lender your bank statements when it comes to buying another house.

All of it, 100%

I have a W-2 job that pays the way, so all the rent collected goes direct deposit into an account reserved only for my properties.

1,363 miles (20 hours 3 min) Texas to Ohio, never seen it in person and have no desire to make the trip lol

My goal is 10 SFH, as I'm just looking to supplement a $3,000 a month pension (inflation will slowly drain its buying power, so turning to real estate to combat that effect) that I'll start drawing from in 2023 at the age of 53.

I currently own 4 rental properties and looking for #5. (Planning on buying 1 a year until 2023)

Right now...

Collect $4,580 a month in rent.

Expenses are $2,298.01 in total mortgage/tax/insurance and $409.15 in total PM fees

Net $1,872.08

Of course other expenses come and go (gutters need cleaned out, lease fee on a new tenant, annual pest control, etc.) so that net is never a fixed income, but very variable.

Right now I don't touch any of that money, as it goes into a business account to be saved for the next one.

My primary residence's mortgage is also due to be paid off in 2023 as well freeing up even more loot. 

So, between $4K to $5K a month from the rentals, $3K on the pension, plus $2.5 from doing something else part time. 

I figure maybe between $8K to $10K a month when all is said and done.

My PM teams have really been a blessing as they vet tenants with great benchmarks to find the best, as well as property inspections, and keeping me informed.

I just got an e-mail the other day from my PM in Alabama telling me that they went to our property for its inspection and found it in great shape and commented that this tenant takes really special care of the house and the tenant told the PM while he was there that they would love to stay there for many more years (they will be resigning for their 4th straight lease.) 

Now that is music to a landlord's ear, a tenant who takes special care of your property and wants to stay for a long time. :)

I’m currently paying 7K out of pocket on my Dallas GA property for a new roof as the gutters were not cleaned out and the roof paid the price as rain water made its way inside from the water filled gutters that were not draining properly causing damage to the wood and leaking through the upstairs bathroom. 

So now I’m signing up all my properties to gutter cleaning twice a year. 

I was just wondering if I’m making a knee jerk move.

So what is everybody's opinion on being more proactive with your property and having scheduled services done throughout the year. 

Which ones would you do?

EXAMPLES

Fall & Spring Landscape Target Date: March/April and September/October

Your property’s landscaping will add to (or take away from) its value. Although tenants will take care of the routine lawn mowing, they will not care for the landscaping adequately. We recommend the following service twice a year: re- seed, fertilize, poison the pine islands, trim shrubs, inspect exterior of home and report any items that need attention.

Cost: $95 to $155 per season (depending on the size of the yard)

Please Note: The cost of landscaping may exceed $155. Usually this occurs during our first visit to the home when the landscaping is severely overgrown or neglected. 

Fall & Spring HVAC Service Target Date: April and October

This service can aid in early detection of costly problems and save the cost of expensive, emergency service.A/C Service Includes: Check condenser coil, adjust operating pressures, monitor safety controls and starter capabilities, clean or replace filter, adjust blower components, calibrate thermostat, measure for proper temperature differences, clean condensate drain, tighten electrical connections, measure voltage and amperage on motors, lubricate moving parts. Furnace Service Includes: Clean burners, check gas pressure, lubricate motor and bearings, calibrate fan limit controls, clean or replace filter, check wiring and connections, change belts, check pilot flame, calibrate thermostat.

Cost: $100 per system (each add system $50) 

Chimney Inspection/ Cleaning Target Date: June/July

We strongly recommend having the chimney professionally checked every year and cleaned every two or three years. This service will clean the fireplace of soot, sap buildup, bird’s nests and other combustible debris. Inspection/Cleaning the chimney will reduce the risk of chimney fires.

Cost: Inspection $150 Cleaning w/ Inspection $200 

Gutter Cleaning Target Date: January and July 

Failure to clean the gutters not only causes the gutters themselves to rust and deteriorate but it also begins to cause

problems with the roof, fascia boards and soffits. If you have trees near the house, you should invest in this service.

Cost: $125-145 per visit 

My Dad is a CPA and a former County Auditor, so I get this service free :)

I use PM on all my properties and it is my decision on who we pick. 

They send me detail reports on the applications and we do a comparison on each one based on their employment, credit score, rent history etc. and then I make the final decision. 

Of course I ask for their input as well as the PM is going to have more experiences with tenants than me.