All Forum Posts by: Cole Oliver

Hello Everyone, 

I am interested to see what credit cards you all have used for your business that have the best perks/rewards. In my real estate business, I have been fix n flipping houses or using the BRRRR method. In both cases I spend a lot of money rehabbing a house and then pay myself back either through a sale or refinance of the property.

Up to this point, I have primarily just paid for everything through my business checking account. However, I figured if there was a good credit card with good cash back options, I may as well use that and then pay the bill in full each month while rehabbing. I have thought about getting a card through a box store like Home Depot but don't want to be limited to the benefits of just one store, as I buy multiple materials from many different vendors. Any of you have a card you'd recommend?

Really like that Feedback Greg and John. I have the issue of a high mortgage and taxes and insurance. Currently the property brings in $4,775/mo but they have the potential to bring in around $8,000/mo if rented correctly. My estimated monthly expenses including taxes and insurance will be somewhere around $6,300 so I will no doubt have to raise rent significantly to pay the bills but I am thinking about raising them to bring in at least $7,000/mo for now and then make more subtle rent increases over the next year or two unless I have a turnover. 

I really like the idea of letting tenants know how much their unit will be marketed for if they don't renew their lease to help them realize the deal they will be getting.

That is interesting. However, there are tenants that have lived in at least one of the units that have been there for over 20 years. I felt like it would be better to take a couple hundred dollars less for the first year to try and keep them because they had been great tenants for the their current landlord. Would you still non-renew them?

The units are in a small tourist town in SW Missouri and are in great shape. A little dated perhaps but they are located in one of the best places in town and otherwise very attractive. There are much smaller homes in worse parts of town renting for $1600+ currently.

There is not a cap on how much I can raise rent here in SW Missouri, and my thought process was to keep the rent a few hundred dollars under the market rate so that if they decided to look around, they’d realize they can’t find anything comparable with the new increased price and stay anyways. If one or two tenants decide to leave that’d be okay, but I wouldn’t want all 4 at once. 
Also, there is a shortage of housing and a very high demand for rentals due in part to being a tourist town, but also because of an influx in people on coming from the west coast. 

Hello! I am curious to get feedback from everyone about this situation I have found myself in. I am currently under contract on a property that has 2 duplexes (4 units) and shop buildings on it. The seller of the property built them back in the 90's and paid in cash for them. 

When running my numbers I got the current rates that he is charging, and they are 30-40% less than the fair market rent value in my area. He has two 3B 2.5B units rented out for $1,050 and $1,100, and 2B 2B units rented for $975 and $1,000 each month.

Based on my experience in my market the 3B 2.5B units should be renting for $1800-2000/mo and the 2B 2B units should go for $1300-1500/mo.

Tenants are currently on a month to month lease so raising rents won't be a problem, but how much would you raise it to?

Our contract states that I will give the current tenants 60 days notice from the day of closing that rents will be raising, but would it be too much of a jump to raise rents to $1600 for 3B units, and $1300 for 2B units? I figured I would give current tenants a better rate for a year, but if they decide to move then I'll market at the top rent rate. What are your thoughts?