All Forum Posts by: Dan Shallcross

@Aaron Zimmerman I think 1 is at market rate or maybe slightly higher, the other two are well below. I'm negative by about $850 each month. Reserves are all out at this point, fortunately my rental in MT makes me $600 a month so out of pocket it is really only about $150-200 a month. The area is not great, fairly low income and not appreciating well. Built in 1940 but recently (2023) renovated. I would be willing to make it assumable but the rate is 7.25% so you would get a better deal getting a new loan. It would also leave me owing money at close which I would rather not, unless the VA is willing to let me do a short sale.

@Ken M. Yes, definitely exciting, I can say I have learned A LOT this year.  I am living in the same town however I will be leaving in late December for a few months then probably deploying in April then will PCS shortly after so doing my own PM isn't very feasible.  

@Rick Pozos I'm not sure about lying but I do believe the realtor I used didn't do an actual evaluation he was ready for me to pay full price without questioning it.  I should have done a better job evaluating the buy for sure.  The appraisal actually came in at $460K and indicated that my rent estimate of $1,500 per unit was on the low side. You are completely right about the 20-30 year hold.  I will admit I'm in panic mode now so I need to analyze my entire portfolio to see where I can trim the fat.  I'm honestly worried that if I increase the rent on my tenants that I will lose them, it will have to be baby steps for sure but you are right, I will eventually get there.  

@Elealeh Fulmaran Thank you, that is perfect. 

Hi all,

I bought a tri-plex in San Antonio, TX in December 2023 as a VA house hack for $450,000. The property had a prior renovation and currently has no problem tenants, but I've had a few unexpected expenses — $3,000 for a rat issue and $2,200 for damages left by a departing tenant.

I also experienced a bad property manager who left one unit vacant for 4 months while I was deployed. I had to fire them and hire a new manager who charges 10% of base rents (~$318.50/month).

I’m now cash-flow negative. At purchase, I expected rents of $1,500 per unit, but current rents only total $3,735/month across all units, and I also pay utilities. The property value has declined to around $430,000, and I owe $446,153.

I’m trying to figure out options for getting out from under this investment quickly without dumping more money in, or whether there’s a realistic path to stabilize and turn it around. Any advice, suggestions for exit strategies, or perspective on whether it’s salvageable would be greatly appreciated.

Thanks in advance!

Hello,

I bought a Triplex in San Antonio using a VA loan. I'm living in one unit and the other two are rented out. I just found out today that one of my tenants didn't pay rent and was sent a pay or quit notice but the notice provides them 30 days to pay or quit. I know federally backed loans are required to give 30 days notice but I believe that because it is a triplex and the other two units aren't owner occupied it allows me to do a 3 day notice. Should I be pushing my PM to send a new letter with a 3 day notice. Thanks in advance.