All Forum Posts by: Derrick Aragon

@Melissa Dorman DM me so we can chat I can also help you with the remodel. 

@James Forester you don't have a relationship with her where you can just ask her to leave? 

Has she received mail at your property? If not then I don't think she can be considered a tenant but check that to be sure.

90 days and you will have to check the no cause eviction ordinance because you might have to give her moving fee... 

I would try to find a more one on one way to resolve instead of the legal way first...

@Melissa Dorman if you are rehab and refinancing you will want to push the product to match a higher comparable property... So, if your place is old 70s and the rents are low, the remodel will need to be such that the new rehab will allow an appraiser to use new construction or remodeled units that receive the higher rent. They look at comps, not financials...

Sub-metering can me expensive but what you should do is a flat charge back for utilities with the new tenants. 

DM me if you are interested in talking further or need some contracting advice. 

@Kevin Jorgensen I am not following you 100% but I think I understand what you are saying... I would focus less on the year and more on the housing starts vs home ownership numbers...

yes, if you are actually going to be in the house for the extended amount of time then yes locking in low-interest rates for the long term is a great idea. If you are doing that idea for your own home it is not really an investment... I don't look at your live in home as asset unless it is duplex and you have a way to turn into an asset.. Who knows where it will be in 15 years....

I would ask myself, why do you need a big home??? A 4 bedroom 2.5 bath 2-3k sq ft home will be plenty of room i am assuming and you could invest and possibly 1/3 rd of the mortgage of your new house. you have lived in a small house now.. 

I don't know your situation you might be stacking cash making a bunch of money and buying big home is your dream... 

In the highest point of the last cycle, rates were at 6-7%.... Paulsen, i don't know anything about but I know he has access to a lot more information and opportunities than probably 99.9% of the world...  he is not sharing that info with you or I...Greenspan said the housing market is rock solid right before it crashed... everything comes in cycles... when builders can build they will build until they can't...

when it goes down, the bottom will be around the same prices were in 07', and we are at that point now and the housing starts are not enough to fill demand, i think we have a few more years of run up... things will also be affected locally if we still have 10k people moving here year after year they have to live somewhere... who knows intel might not be around in 15 years and drain the local economy... 

I think it is cool you are questioning these things... I don't have the answers I am just expressing what I see in the numbers... All i know is I want to be ready for the next downturn to take advantage...  Every 6 months or so the banks have been loosening their underwriting. I just did a loan a year ago and they would only take in consideration 75% of rental revenue as a part of my income. one year later same bank same loan they allowed 100% to be considered... 

@Kevin Jorgensen pull national absorption rate for single family.. look at the housing start ie new construction numbers... you will see they are off.. not enough supply... so, the gap is being filled with foreclosures... look at the national foreclosure it is almost all gone.. so you will have a run up in price until starts outpace demand... then once you have a period of more starts to absorption rates then you will have a deep..  

it has been the national trend for the last 3 cycles for SFR... you can look it up a couple guy on youtube broke out the charts really simple but it is what the hedge funds been using for a long time.

@Steven W. 

 If  $1,800 will make you whole on the remodel and you will then be ok with renting out in a year at the $1500-$1,600 than it sounds like a no-brainer. 

I would charge a large rent deposit on the air b&B guys.... 

@Ed Perez I am not in Ohio so you might be dealing with different tenants and tenant charge back but if you put in the hardwoods you can take great pics and whenever someone moves out you can have your hardwood guy come fix anything doesn't to the floor and you can charge back to the tenant.  Really straight forward carpet is always hard to recoupe especially for longer term tenants. 

@Steven W. are you having trouble finding a tenant at the price you are looking to rent?

The upside is - ideally the place will have less wear and tear and probably pretty clean turn back over to you. 

Downside - is there is no real upside in investment to you. 

Test - If you are interested in do air b and b yourself you could have him do the first year but make sure you own the air b and b page for your property so if you stop the lease you can keep the value of the year of renting thought those platforms so you can leverage that for yourself later down the road. 

People do this all the time...

usually, this only works in new construction A+ because people want the lease-up rate so they will make them rent a whole floor. 

If you have no interest in doing air b and b yourself, and you don't have problem leasing it to a market rate tenant since it is in a nice area.. The air b and b offer should be higher rent than market rate tenant. 

Good luck. 

@Mike Biewer ok lets do it! 5037406917 shoot me a text 

@Chris Parrish respect... good luck