All Forum Posts by: Account Closed

Agree with @Dawn Brenengen.  Put yourself in the tenant's shoes.  I don't think it's unreasonable to have someone visit for a few days - an extra car (motorcycle) parked in the area isn't going to do anyone any harm.  From her perspective, she may be thinking you are asking her to commit to a relationship she isn't ready to commit to.  Go month to month, or extend the lease another term and go from there.

My thoughts -

If this is a house you are buying to move into, and to move your Mom into, then this is your home...it's not an investment property.  It's your home.  I would move in, fix up the main house, then work on the duplex out back a little at a time so you can move your Mom in.  Once you two are settled and doing OK, then work on the third place and get it fixed up.

I look at things a little differently...home is where the heart is...especially if you're moving your Mom in with you.  Take care of the family first, get things cleaned up, then look at the next house for an investment and move up.

You could move other folks in, but your Mom is going to want the best for you and she's going to be more stressed out about your tenants than you will be (I know my Mom would be).

Yes, they are still relevant.  Sometimes I deal with out of state attorneys or contractors or service providers that send me a bill.  I'll slip a business card in the envelope with the check and copy of invoice when I'm paying them.  Most of these folks I've never met in person - I need to build that relationship.

LinkedIn is used for my W-2 job and networking.

Facebook is used for family and friends.

I don't need an attorney (or banker as Facebook has recently suggested I "friend") I do business with on the real estate side of things to know my personal life.  Business is business.

@Chris Armstrong  I have tried "European" sized business cards in order to "stand out".  They are a pain - they don't fit in standard credit card holders.  They end up in the trash next to the magnetic football/basketball/baseball home team schedules that realtors send me.  Calendars are nice though - I have a calendar from the guy that repairs my truck next to me at my desk...it's of outdoor images by Jim Hansel.  Very classy, very nice.  His son that works for him at the shop explained to me he was disappointed his dad didn't choose hot rods and girls in bikinis for the calendar...I wouldn't be able to hang that anywhere outside of my garage at home.

 That's great news.  I had heard it was challenged last summer.  If the POS inspections go away, I may look into foreclosures out there.  I can do my best to get things done in 6 months, but sometimes I need a little more time and I wouldn't want to get fined for it.

Every day during the week, I take an hour walk at lunch. There are trails here that go through the neighborhood. Every house in the area is about $1.2 million plus. I constantly see work getting done on these houses - rehabilitating the tennis court, tearing out and replacing the back "sitting area", etc., etc. I don't know if this is something the HOA makes them or not. It's an awesome area.

I keep asking myself "how can I?"

Ten or 15 years ago, these were $300,000 homes.  I suspect since Denver (and the Bay Area) has been such an appreciating market, a lot of these folks "catch the wave".  They start with a smaller home, then they trade up, trade up, trade again, and keep at it that way.

Then there are the folks that are in occupations where they need to entertain so they buy these homes to entertain and try to get ahead.

Then there are the folks that have the money and always have.  They're the ones I see walking around in Rockport shoes, faded jeans, and t-shirts.  These are the folks I wonder about...and always ask myself - "how did they?"

Talk to either a financial planner or a CPA.

I'm never an advocate for spending XX amount of dollars so you can save X amount on taxes.  Usually, it's a losing proposition.

What I would do is exhaust all other options first.

• Are you maxing out your 401(k) or IRA every year? That's $18,000 right there.
• Have you created a §529 plan for your child?
• Have you considered a revocable trust for your child's college expenses?

There are a ton of options out there.

I think you have a chance.  I constantly see house boat "time shares" and offers for rentals at Lake Powell in my area.  I grew up in Southern California and have spent a TON of time on the water.

In your area, a six pack type deal might work out for you.  Maintenance would be higher - if the boat only sits for an AirBnB rental (not allowing the renting party to take it out) that could be a good deal - you don't want to be in a situation where you're replacing props after every rental.  With relation to engine maintenance, it depends on a few things. That estimate is what I would expect on an outboard.  For an inboard or inboard/outboard, I would also look at the cost for replacing the rubber seals, I would look at maintenance for hydraulic steering (if applicable), I would count on replacing electronics every couple years (sonar, radar, marine radio), gauges, etc.  If it's self contained, don't forget about pump out fees for gray and black water.  You will need to pay for fresh water as well.  I'm also surprised the boat uses propane for heat & cooking - usually boats use alcohol.  Propane fumes are heavier than air and can settle in low places on a boat - could be an explosive situation.  You're also going to need to repair/replace gel coat and carpet every few years.

Aramark runs the concessions at Lake Powell, Lake Mead, etc.  Do they have a similar operation near you?  I know this is also pretty common in Michigan and on the Great Lakes.

I don't really see this as passive income but from a business perspective, you might be on to something.

 Congratulations!

This market is just mind boggling to me.  I just don't understand the buyer mentality.

I helped my Mom buy and fix up her first rental over the last couple months.  2 bed, 2 bath condo in the area of Havana and Alameda (technically Denver but borders Aurora).  She paid $140,000 cash for it and her tenants moved in yesterday at $1,400 per month.

Same condos were selling for $70k or less about 5 years ago.

It's insane.

I don't know if it's the exact same model but I had a Rinnai installed in an older home I bought.  The heater is on the outside wall of the front room - the main bedroom and bathroom are in the back of the house.  This is an area where I personally have experienced -17 degree temperatures.  This is a one story, 625 sq ft home.

There is a difference in temperature that (to me) is noticeable - probably about 5 or 10 degrees in the back bathroom.  The house has all new windows (installed right after the furnace) and I've placed ceiling fans throughout the house to keep the air moving.  I haven't had any complaints about the furnace or distribution of heat from the tenant.

Not sure if that helps but thought it might give you ideas.

If we're talking income taxes, the simple answer is what's your net taxable income and what's your effective rate of tax?

Income taxes aren't due based on cash flow.  They are based on net taxable income.

If we're talking property taxes then go to the county assessor's office and look up with the property tax bill was in the prior year.