All Forum Posts by: Chris Svendsen

 Agree on cash flow every property.  Have a year until leases are up but positive side is if fill 3 remaining leases should cash flow a little, just over $200 a month.  Once turn property around to way I want it should cash floor $1000-1200 a month.  Downside is if not fill 3 open spots will be under about $1000 a month.

Mostly same thing many stated, Fear and over analyzing of deals. Right now have a property under contract, price decent, but cash flow not close to my other properties due to how leases configured by current owner with him covering utilities.  My Fear is that even though I know i can lower the existing expenses now with current tenants, and on new tenants can change utilities over to them, I fear it will not work as I have planned and will somehow end in negative cash flow.  That is what I have to overcome, the fear of failure.  If this was a sure thing everyone would do it and it would not be investing.  

Looking for cash flow and hold properties long term.  I been back and forth on this one.  Originally numbers were much better but now with current leases they about $800 a month lower than originally expected.

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*This link comes directly from our calculators, based on information input by the member who posted.

Have building under contract.  Did property inspection found a few small items that need addressed but nothing major.  Building owner currently pays utilities and with some unit using electric baseboard heat bills get pretty high.  Plans are to use existing hot water heating for other parts of building and update lighting to LED to lower bills.  Future would bill electric and water back to tenants but for first year they already signed leases with current owner with him paying bills.  I am self managing for now and doing repairs so techinicaly those expenses will be paid to myself.  What are your thoughts? Is this worth the risk to make money in future?  Student housing hard to come by and get approved through town so is more valuable in this area, plus is an apartment so falls under different set of rules in accordance to students.  But still 3 vacant rooms at $475 each to fill so as is now I could stand to loose money. Give me honest truth, should do this deal or not.

they're readily available at my local Lowe's and Home Depot in the hardware section and also available at the farm stores such as Southern States and Tractor Supply. Like other said they're used for attaching metal to metal, traditionally I've used them for attaching metal roofing on barns and sheds.

thanks people's.  Huge help and for sure not doing 2 year leases.  Inherited the tenants when bought house. Was good and bad.  

Thanks for input.

I have a single family home used as a student rental.  I have a tenant who signed a two year lease but wants out after the first year.  I had something pop up in my brain after talking to her as to whether I could actually let her out of the lease legally.  What I mean is that the lease is for two years.  If i let her out after first year is that setting me up to where if I do not let someone else out of lease I am breaking some fair housing law?  Reason I ask is I had another tenant before who wanted to get out of lease and told her no.  Now, I am possibly going to let this tenant out of lease with agreement that security deposit will be lost and she is responsible to assist in finding a replacement, however would not be responsible for any remaining rent due after the first years payments.  

If I allow her out of lease a year early do I now have to let anyone out of lease if they ask?  If so, while lease states tenant is responsible for remainder of lease if break would I be okay to have a lease breaking fee?  Maybe a quarter of the remaining lease amount due?  This is for a building in central Pennsylvania.  Any input you have be welcomed.  I don't want to let one tenant out then have another say they want out and run into legal issues when I tell them sorry but no.  Thank you.

well, based on the source of money for down payment and repairs I would assume you have about another $750-$1000 in expenses not accounted for. Not saying dont do it, just be honest to yourself in numbers. I used HELOC and 401k loan for 2nd property and now for a 3rd property so totally get it, i just made sure to include those in my numbers. Good luck, hope it works out for you.

oh, are you sure you can get 30 year financing at that rate?  Commercial properties get different terms and rate probably close to 6% or above.