All Forum Posts by: Chris Sukala

I'll be honest with you, do not know if I quite understand @Brent Coombsand @Patrick Liska So what you are saying is take 25% (7500) and put down on a 30k house and 25k into the house 32500 leaving 20k available to pay off remodel from previous home. Right? sorry if I seem naive I just want to understand completely. Is this what your guys are referring too.?

What do you mean about if cash flowing I would not have to pay back 20k completely? 

After loan of the 52k, which we included mortgage, taxes, insurance, plus the water it looks like about a 20% cash flow about 150.00

We did find a house hopefully ,still available, that if I can get for 30k when done will be able to get around appox. 28% and if I can get taxes reduced would be hopefully upwards of 35%.

@Joshua Dorkin will do 

Ok so we bought our 2nd SFR 2/1 dec31 2014. We bought it for 30k for cash and we put approx. 25k into it. I waited a full year to get an appraisal done. It came in at 74500. Bank will give us 70% so approx 52k. Ok so we owe about 20k from remod and looking at buying a turnkey for around 50k, they want 60k. It's a for sale by owner but asking for cash buyers only. I haven't contacted them yet waiting to get our money in hand. Option 1: pay off 20k remod and wait to build up more cash to buy additional SFR but could lose out. Option 2: take full 50k purchase, if they will accept offer,then refi that one to pay off the 20k remod from second SFR. Granted only get 70% of sale price but should be enough to clear all debt off of myself and rentals will pay for each other. Option 3: pay off 20k take 32k from refi and empty out our cash reserves to buy home. Option 4 once I receive cash call them and if it's still available see if they are willing to sell us with 32k down and finance the 18k Thoughts?

I have farmers insurance and both of our SFR are around 550 a year

Welcome to BP

Well about month ago I had time to listen to one of BP podcasts. I finally got around to downloading them on my phone. I have the first 30 on here now. So I decide to start with podcast 1 and work my way up. These podcasts are so educationally I would like to say thank to Josh and Brandon. I have learned quite a bit in just these 15 episodes. I am like a sponge that cannot get enough. I have been listening to them every break and lunch at work. After finding you guys I just have be stoked on getting ready for our next buy and hold property. Thank you again.

I would install a better toilet. I am a firm believer in u get what you pay for with toilets. I put the environmental Kohler in ours. They were like 225.

Bridget D. I would also focus on rental units. Go under rentometer.com and see what is the going rate in the area. We went for middle of road not extremely high. We figured keep riff raff out but not so high a couple has to stretch finances to make it work. We gutted are second SFR completely choose laminate over granite and black appliance over stainless steel. Do you stainless steel yourself. If so you know how easy it is to scratch and ding up. Ours sucks I would never buy stainless again unless I wasn't going to use it. Good luck. Oh our house is in shambles for about 2 years now. Haha. Tenants live in better conditions then we do.

@Sarah Larbi I saw the sister in law today. she mentioned that they had to be out be March 11th. We may move forward and do a sit down and see what they are looking for and go from there.

@Jim Adrian we do not have a PM but I also was thinking the same thing. Possible talking to some and see what kind of charge they are wanting for this situation.

@Douglas Snook I agree totally with you. Supposedly they tried the loan mod and they would not work with them. So with that being said something else is going on. I saw her today and she said someone bought there house, which is weird because I didn't see it come over auction list. Must have more title companies doing auctions. They received a letter in the mail box introducing themselves as the new owners and if they wanted to rent it they could otherwise need to be out by March 11th. I think that is what we will do is buy what we want and if something is available it is if not, we will head them in the right direction

@Jeremiah B. We would definitely need to sit down with them and talk this out. In fact We had a Friend get separated, she sold her house and moved into our rental. We went over the lease agreement, had her look over the house, mark anything that may be wrong. She rented quite well at first. Then started being late, from there she could not make rent,  she was going to school full time and no child support. Of course she had no where to go and guess what she owes us 2k. She has moved out in June 2015. She did however make a payment to us last month. Because her daughter has a good relationship with my wife, our emotions got the best of us. I kept every text I sent her so in case I had to go to court I would have something. I hope it never gets to that point. She finally has a job and keeps telling me she will pay me. I am not counting on it. 

I would hope sister in law would now have a better understanding of why things should be paid on time. I would love for this to work out and strengthen our relationship but part of me seems like this is not going to be the best situation. First things first is to sit down and see what they need.

@James Ehrig They are hard workers both have jobs, I think though they may be lacking financial know how. From my understanding somewhere down the line they missed 3 months of house payments. Supposedly they were back making payments. But they never repaid the 3 months they were late. I tried to explain it to her but she just didn't get that she is still 3 months behind. I told her just because you started paying again doesn't mean you are current. She sometimes believes its always someones else fault, similar to your friend. I like your idea of 3 months of cost, getting back on their feet, then goes to regular rent.

@Marcia Maynard Thank you for the comment. Well they did not seems to lack self esteem at all, at least when they are around us. Im sorry I meant My wife and I. The reason we have not mention anything to them is in the past there has seems to be a misunderstanding for us being nice for having a get together with friends and family all our treat verses being showy. Granted we only have 2 tenants but we also try to be Friendly, Firm, Fair, and Flexible. I think I will take your suggestion, be upfront, tell them and let the chips fall where they may. We are looking to add another SFR and a MFR this year whether they want to rent one or not.

@James Wise you are 100% correct, we bought our second one and a friend was having a rough marriage and wanted to move out, so I told him well if you want to rent this fine. He was helping me working on it and was going to pay us for cost. I came to the property and he blew up for no reason. It was my fault and wasn't even there, I work 7 days a week and lost a good friend over who knows what.

@Matthew Paul Good question, We all need to be open and honest. They should respect us and we in turn should respect them.

@Michaela G.I think the whatever attitude came into play. From my understanding somewhere down the line they missed 3 months of house payments. Supposedly they were back making payments. But they never repaid the 3 months they were late. I tried to explain it to her but she just didn't get that she is still 3 months behind. I told her just because you started paying again doesn't mean you are current.