All Forum Posts by: Chris Virgil-Stone

I plan to pull mine out soon. I was just completely vested after 3 yrs. Say I pay 10% penalty plus 20%, in my plan the 70% I will pull out is still more than I put in. My company matches the first 3% and then 50% of the next 3, and 5% for retirement in the same 401k account. So I contribute 6% and them, 9.5%, the 30% is worth it in having control of your investments, getting cash flow and debt paydown all at the same time.

Buying 7 townhouses in one HOA for your first investment is risky. How well do you know the area? It sounds like rents area very cheap but that is relative as well. Lower rents will typically attract drugs and crime. If you know the area is good or decent then ask the seller about lease details. Go and look at the units, typically a couple tenant will be home and you can get an idea of who they are. Also see what they were bought/sold for before. If it is drastically higher than they are asking that should raise red flags.

I agree with @Rosston Smith, don't wait. Read. Get out and get experience. Apply to be an admin for an agent. Talk real estate with everyone you know. You don't generally get a mentor by asking for one. You get one through interactions. If I was looking for a mentee, I would look for those taking action.

When you say cash flow $600/mo remember to account for maintenance, vacancy if applicable, capex and management even if some of these don't apply. If you know you will never manage, and you decide to sell to another investor they will likely factor that into what rent you're getting to get a IRR. I'm not sure if you factor those into your purchase offers but they should be considered. Good luck!

Check out Greg Stamper with Mark Spain Realty. He always put his clients first and knows the area well. He has helped me buy 2 properties this year. I went through 3 other agents before him because I had a hard time finding someone with good communication. He responds right away and is always reachable.

@Rick Bassett Why would it cost so much? Are you able to state in the lease the tenant is responsible for your attorney fees should the need for an eviction occur? I have used it and been able to use their deposit for the attorney fees. Fortunately I didn't have to go to court. This was in New York which required a 7 or 10 day delay for pay or quit notice. Currently in Georgia there is no set period to wait before serving it thankfully. Good luck!

I love the idea, however....Cheap weekly rentals in a drug ridden neighborhood will likely bring drugs and/or prostitution to your home. You can't require they give you drug tests weekly. I would say most do relapse some time, as I have known drug addicts and witnessed it personally, There may be some government programs to help with the cash flow aspect of it. With the correct processes in place I think it could work, but not for a first time investor (typically). It would require a lot of attention even with the processes/systems in place and would be more for the "giving back" than the income it provided. I suggest renting to non-addicts first and testing the landlording waters, you will find enough problems that way and go from there.

There are 100 percent loans for owner occupied homes. It takes time but if you buy under market value and provide forced equity through improvements, sell 2 years later (no taxes) you have money to start investing. I did this with a duplex except with 3.5% down. In the middle of 2 deals now and a 3rd within 6 months.

I would not decrease the rent. Especially for 36 months, unless there is an annual increase within the renewal. You are not just robbing yourself of $900/yr, its that plus any market increases in rent each year. If they are talking of hoping to buy the property in the future but cannot afford the current rent that should tell you immediately that they will not qualify, especially if older as they will have less control over changes in income. If they were a long term tenant I understand helping them out for a short period (maybe 3-4 months at most) with slight discount to avoid vacancy but you're talking of missing a grand or more per year which is hopefully more than your vacancy rate. Even if you did not increase the rent on renewal to avoid vacancy although the market rates justified it would be doing them a favor. Unfortunately it sounds like they cannot afford the home anymore, and with that large of a change in income, a change in lifestyle is in order meaning a cheaper home. Good luck with whatever you choose to do.

You cannot charge for a service animal pr emotional support animal. You can require the certification as well as a doctor's letter stating the need for one. You also can keep any of the deposit for any additional damage done by the animal during the tenancy, but this should be able to be proven. You can deny them I believe if you are able to prove that the animal will cause financial hardship for yourself or something like that.