All Forum Posts by: David Hines

No, the monthly payment should not count toward the purchase price. Under a lease option, you are leasing the property for that period of time and then have the option to purchase it at an agreed upon price. The monthly payment is the owner's compensation for leasing the property to you.

Check out Mysmartmove.com. Landlords can use it, not just realtors and property managers. I like that it is easy to have the applicant pay the fee, then the reports are sent to you.

Your best bet is to call local property management companies (your competition) and ask what they charge. This also gives you a chance to assess their competency level.

Usually the 2% rule is talking about the monthly rent amount, not the return on investment. I've found the 2% rule to be totally unrealistic in Texas on anything but C or D class properties.

Look into mysmartmove.com. This is a great system that allows you to have the prospective tenant pay for the report and it is sent to you. We do this in lieu of an application fee.

It depends on the repair. If it was caused by the tenant and is not normal wear and tear, I would think they are responsible for it.

The insurance the HOA buys will provide liability coverage for common areas like tennis courts or pool, but not homeowners insurance. If you want coverage for fires or storms, etc you'll need to buy your own policy.

My understanding is that material participation or not doesn't apply in this situation. That is only a concern if you want to deduct losses against your wages from your full time job. You can always deduct current passive losses from current passive income and then carry any excess loss forward to future years.

@Account Closed Let me know if you decide on Katy, Tx. I am a local property manager and real estate broker. I would be happy to help you in anyway I can.

If you are going to be using the tools infrequently, you should buy corded and NOT cordless. The real cost of cordless is in replacing the batteries, which always seem to die between projects if they aren't being used regularly. Although, if there is no power on at your flip, then cordless may be necessary.