All Forum Posts by: Dillon Dale

@Marvin Rios yes but if you go that route, I still would recommend separate bank accounts as it's easier to track income and expenses that way

@Kyle Weinapple either option is good! Personally I'd prefer brrrr since you're already living rent free that way you can make your money go farther

@Travis Oakes usually they will leave when you increase rent, and that is usually a good thing. After 15 years they will likely feel some entitlement to the property and that is a long time to develop bad habits from the previous landlord mismanaging or otherwise not managing as well as you intend to. I'd bet more times than not they'll be a headache but you can always give them notice to vacate and get your own tenant in there. Whatever you do, make sure you eventually get it to market rent whether it's with them or a new tenant. But I'd hold out on any increase or notice to vacate until I'm ready to renovate their unit

@Travis Oakes yes, asking around in your local market is a great way to learn that info both for the rent difference and rehab cost!

@Travis Oakes for example, say you would make an additional 100 per month in rent by adding a bedroom and the renovation costs you 5000. Your annual ROI would be 24% (1200 per year in rent increase/ 5000 reno cost). I'd do that all day!

@Travis Oakes that's going to be more market specific, but you can run the numbers and see. Compare the difference you would get in rent versus the cost to do the renovation. I bet the ROI would be pretty high but definitely run the numbers for your specific market

@Eduardo Cruz you can still use a low downpayment option like FHA if you will occupy the new place. That is what I would recommend based on what you're saying in your post. Use your 20k as a downpayment on a 4plex and live in one of the units. Good luck!

@Gary Oconnor live where you wanna live. If you want to live in the house then refi. If you no longer want to live in the house sell. Good luck!

@Travis Oakes yeah man, you're on the right track. If you can live in the unit while rehabbing that is awesome. Then in the unit you want to rehab next, give that tenant notice to vacate. Move in and repeat! Good luck!

@Manmath D. I would leave the heat on to at least 55