All Forum Posts by: Britt Abbey

I wouldn't because that $1,000 saved would only pay for a few hours of my attorney's time in the event of a catastrophic event.  If you're entirely self-insured and you don't have a mortgage, there's no reason that you COULDN'T do it... but I would highly suggest you discuss the decision with your accountant and attorney canceling the policy.

I'd say as long as there is a timeline and endpoint for the negative cashflow known ahead of time, it's appears to be a reasonable strategy.  If you know that in X number of months your existing leases terminate and you'll boot the tenants to rehab, it's really no different than any other fix and hold strategy.  You simply add the negative cashflow for X number of months into the cost of the project.  If you can afford to lose $700/month in the interim with the anticipated reward being far greater in a year, there's nothing inherently wrong with the thought process.

does the landlord pay for heat?  What are the anticipated taxes and insurance costs? What are vacancy rates in the area?

Personally, if you are self managing, I'd look for at least a 20% cash on cash return when factoring everything for what I consider a C neighborhood. If your definition of C varies from mine (ie I wouldn't feel safe walking in myself) that number could vary to the point I might not touch it.

Why wont the utility company allow a second meter?  I'd think as long as you have a new entrance installed meeting local inspector's requirements and you've properly disconnected from the residence's main panel... it shouldn't be an issue.

The next step would be to install a submetering system similar to:

http://www.amazon.com/Leviton-2N208-21-Sub-Meter-Series-Element/dp/B004KS0KYY/ref=sr_1_3/180-3176918-8953704?ie=UTF8&qid=1402513645&sr=8-3&keywords=leviton+submeter

Unfortunately, you're going to be stuck having to calculate out how much you'll need to pay your tenant on a monthly basis. (I assume that you won't want to keep the power entirely in your name and bill back the tenant each month for their portion).

I have it in my lease and move-out instructions. Repairs are billed at $25/hour plus cost of materials.

private or hard money without points might beat bank loans with closing costs.

leaking trap under sink... Tenants shove anything and everything in the base cabinet because of lack of storage and too much junk.

It really doesn't make a lot of sense (or cents) for a burglar to steal laminate counter tops and low end cabinetry.... especially considering how much damage they did to the cabinets and counter top on the way. The appliances are the only thing of value that they made away with.

I tend to look at my properties as income streams. If somebody is willing to pay a premium for one of my income streams, and I could pay all transactional expenses and replace the income stream with a larger income, it'd be foolish to be emotionally attached to property.

The key is reinvesting the equity and not pulling out to spend on depreciating assets. I think most of those people in the original post that said they wish they never sold their property chose to put the proceeds into cars, boats, braces for the kids, vacations, renovations of their primary residence, etc.

translation: foreclosure = more work and less pay for your agent. Dump them if they can't see the forest through he trees. Building/fostering a long term relationship with their client should come before short-term gains.