All Forum Posts by: Dale Carlson

Boone, Iowa

My sister and I own a triplex in Iowa with NO mortgage.  we paid cash.  we have renovated the apartments, and have them rented out with year leases.  We would now like to take a $50,000 loan out (15 year loan), to go buy another apartment.  We believe the value would be around $90k. Can anyone refer a lender to me that would be interested in this?  Thanks.

Vinyl Plank Flooring.  You can get Trafficmaster Allure for $1.69/sf.  it comes with a 25 year residential warranty, and it will hold up to moisture and water spills way better than a typical laminate.  You can also use it in kitchens and bathrooms, and it is super easy and quick to lay down, and tear up.  It will last ten times longer than anything else.  

As Judge Judy would say - "you cant order a steak, eat the entire steak, and then not pay for the steak".  If she lived there, she owes you rent.  If she doesnt like where she lives, she should move.  BUT, i am not a lawyer or Judge, just my two cents.  

I dont know about kicking out a tenant, just to kick them out and start fresh.  I would recommend taking several looks at the apartment and see how the place is kept.  It will tell you how they treat the place.  Then you should look at the history.  Have they paid every month?  Why would we kick out a paying tenant that takes good care of the property?  BUT, if they are constantly late, and the place is beat to hell - well yea, start over.  As far as the overall deal, i would say you have to ask yourself how many repairs will i need to make over the next 5 years?  If the roof and siding are newer, and furnace and AC were just replaced - then you may be able to squeek out a little more cash flow, since you wont use all that capex and repair.  

If you like everything and the numbers dont work out, just work the numbers in reverse.  What asking price would it take before this is a 2% property? Then offer that amount.  If it needs to be at $60k, then let that be your offer. 

Can i vote for C)  Vinyl Plank Flooring?  It floats, it is durable, it is easy to install, rated for bathrooms and kitchens, as well, and best of all it is $1.69/sf at HD.  I would say it is perfect up to a B+ property. 

Bottom line is - you have to go check it out.  You dont know if its a good deal until you investigate it.  And neither does anyone else on here!!!!  Anyone who tells you its a terrible deal or a great deal are giving out terrible advice.  They havent done their due diligence either.  Investigate it!!!  If it doesnt work out, then you have learned a ton by just looking at it with the investor goggles on.  

Dont be afraid of the people that say something isnt right.  They just live or invest in a part of the country that you cannot find these deals.  They are out there.  I just closed on a 35k property, put 7k in to fix up, and rented the first 2 units in 3 days.  So i spent a total of 42K and the 3 apartments will bring in 20k per year (Cash flow a little less than 9k)

 Just do the comparisons - what are other duplex or 4plexes going for?  Then what are they renting for?  If they compare well, then it should tell you if something is "off".  

If there are already renters in it, let them stay as long as they want and collect the rents.  When they move out, rehab, and up the rent if you would like.  

Run ALL the numbers through the deal analyzer that is on the files page.  It is priceless.  it will tell you what your cashflow will be after you factor in taxes, capex, maintenence, etc.  

If i am understanding this correctly, it doesnt seem like the property you inherited is the problem.  33-44k on 9 doors is pretty sweet actually.  It is the 1 mil in equity that you dont know what to do with.  I would be very, very careful about soliciting advice from strangers on this.  Take your time and feel out your options.  If you put that money back into RE i would say you should get another 100k per year.  Find a mentor!!!

Its exactly what Mike R. stated - you have to flip it upside down, but it is still 45 degrees.  You can cope all you want, but the walls and ceilings never are square, so you still get gaps.  And that is nothing compared to a person's inability to hold the piece straight throughout the cut.  Therefore, i have one simple rule if i do crown molding - it has to be WHITE.  then you can use painter's caulk, and you never see a seam.