All Forum Posts by: CJ M.

@Wayne Brooks

It was recorded. I understand the person who filed the lien has to release it. I'm more asking how payment typically works? For example, do I just pay the contractor directly?

Long story short, I tested a new contractor on a rehab. The project had massive scope creep so it was difficult to pin him down on a final price when he was in the middle of working. Anyway, he recently sent me his final invoice. I very politely questioned a few items on it, which made him upset. I still told him however that I would 100% pay if he felt that was fair (I've never shorted anyone in my life!). He then said he would not charge me for X, Y, and Z items. I thanked him, and paid up in full. 

I guess he thought about it more after the fact (and got upset) as when I came to the property today, he posted a Mechanic's Lien for the amount he said he was not charging me for. Anyway, I'm going to pay him but my question is, is there a standard way to get the lien removed? Do I just send him a check? Does it need paid to the Recorder's office? 

The crazy thing is, if he would have just reached out and asked me to pay, I would have without the need for a lien (albiet still would question some of the charges). What I don't want to happen is, I pay him and he doesn't release the lien...or he then files another one for a different amount (doubtful...but who knows with spiteful people). Lots of lessoned learned with this experience but looking for any experience from folks who had to have a lien released. I'm in Ohio btw. 

@Parker Fairfield

That's difficult to say as there is not one thing/metric I look at. That said, I usually need to cashflow $250+/mo with a min of a 15-20% return (if Im planning to do a cashout). Purchases range from $25,000-$65,000 on average and rents average around $900-$1000/mo. I may take a lesser deal if it's in a better neighborhood. I also pay close attention to my "time." A good ROI is great, but usually not worth it (to me) if the project will take 6 months and tie up a bunch of capital.

Hope this helps!

@Jennah Sontag

I cannot personally confirm as I've had some sort of 1099 or W2 income since I started investing. That said, I do remember early on a couple lenders saying to me "Do not quit your job yet! We need at least 2 years of rental income before considering it part of your income." I asked why at one point and was told something like "risk." They (lender) are taking more risk loaning to a new(er) investor without a "job" so they want to not only make sure they can sustain/grow their rental income, but they can succeed in real estate in general.

Not sure if this helps you but just what I remember.

@Jin Zhang

Interest rates and property values are sort of irrelevant to me. Don't get me wrong, I won't buy a property that is way over priced, but at the end of the day, I could care less what the interest rate is and the purchase price is so long as the deal meets my cash flow goal/need. And so what if property values drop in the next year or so. We're talking buy-and-hold so no plan to sell it anyway.

Lastly, I have never heard a highly successful Real Estate Investor say "Gee I'm so glad I timed the market and waited..." 😀

Hello everyone,

Haven't posted much in a while, but was thinking about the ups and downs I've personally experienced in REI and how I stayed motivated when financial freedom seemed so far away in the beginning.

I remember my first BRRRR...I spent every dollar in the bank (I was also working a 1099 job to cover personal bills after getting laid off from a W2 job). After the refi was completed, I thought "Wow, that's cool I got all my money back, but my estimated 'net' cash flow is only like $250(ish)! Was all the stress and sleepless nights worth it for so little?? That's nowhere close to the income I need to 'retire'!!" Then my logical brain kicked in and changed the way I thought... I said to myself, "You know what, $200 covers my car payment every month! So now it's like having a 'free' car!" I was a bit happier! After the next rental (duplex) I thought "Sweet, this now pays for all of my personal utility bills! So now I have a free car AND I don't have to pay utility bills!" The next rental covered my personal HOA fee, the one after that my car insurance, gym membership, and a couple other bills. Finally I got to the motherload...my personal mortgage payment! That took a few properties to cover lol, but it happened! So eventually all of my "must pay" bills were covered along with living expenses (food, gas, etc.). The reality is, it takes time, with risk and stress levels (varying by ones tolerance) that can de-motivate you along the way. If you find yourself losing faith, try to break each success/rental down into small chunks like "123 Robin avenue now pays for my car," etc. Also, still to this day, I make it a priority to go out to a nice dinner or have a couple drinks to celebrate anytime I purchase, sell, or refi a property. You must celebrate the wins, because you deserve it!

Now, all that said, reaching financial freedom isn't even where it gets even more fun! (imho)...

Once you have enough rentals paying for your basic necessities, your subsequent purchases can then help pay for some "fun" things you've always wanted in life...vacations, a nice watch, your dream car, extra donations to your church/charity, pay off mortgages (if you choose), or maybe you just continue to re-invest. You'll find yourself asking "how many rentals do I need if I want to buy <INSERT FUN THING>?  It's a blast knowing the cashflow from each property purchased going forward, can be used on whatever the hell you want!...because you are already living financially free.

So those are some quick thoughts and hope they help motivate someone out there. Hope everyone is doing well and finds their own version of success, whatever it may be! Cheers!

@Mike Nowa

There are many successful out of state investors, but my feeling, take it or leave it, is invest in your backyard. You know the market, can inspect things to your standard, and can be at the property in case of emergency.

There's already soooo much risk in this business, why add more risk by investing somewhere you can't even get to quickly?

So I decided to rip 2 fireplaces completely out and drywall over. It freed up a bunch of space in LR and BR addition  (since it'll be a rental) I don't have to worry about tenants catching the house on fire, cleaning chimney, etc.

I'm also adding a window where the living room fireplace was (there was one previously years ago). My logic is because since I'm not installing central air, there is no "common" window for a tenant to put a window unit AC as it's a 1 story house

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Hey everyone,

I have to make a decision today on a rental property I'm working on.

There is a wood-burning fireplace in the living room (not sure if chimney is clean/clear). Anyway, the stack coming out of the roof if a big metal rusty mess that has been staining the shingles over the years. I have a new metal roof going on Monday.

My question, should I remove the stack and seal the flue and just make the fireplace decorative? Should I use some heat resistant paint and spray the stack so it doesn't drip rust on the new metal roof? I really don't want to replace the stack but will if needed...and barring my GC has time.

I'm leaning towards removing stack altogether. Thoughts? I'm thinking it might be better not to have a liability like a fireplace in a rental.

Thanks in advance.

@Charlie Miner

Always go by what the lease says. My experience has been most tenants don't pay the balance when there are moultiple months they owe...and it's oftentimes not worth chasing them down for. Personally, my leases just state they forfeit their SD and owe 1 extra month of rent. Seems to be easier to collect in my area.

All that said, I would still try and collect the money. Just be tactful, professional, and reference the lease agreement. See how they respond and if they don't favorably then reference lease again, perhaps mention sending balance to collections which would impact their credit (if you can). Others can chime in, but usually priority 1 for me is to just get my asset back!

Best of luck