All Forum Posts by: Edward Burns

My advice would be to build up your cash reserves. While you do not need 6 months of living expenses as a emergency fund, you do need some put back.

The only exception I can see for the time being, is if you were able to find a turn-key duplex, triplex or 4plex where the mortgage payment (PITI) would be $700 or less and live in one of the units. That way you have not increased your monthly expenses, and can utilize the rent from the other unit(s) for repairs, expenses with the property and savings.

While it depends on the level of service, 10% is about an average figure across the country.

@James Ramsey

In your figures, it appears you have not included maintenance, vacancies, or property management. So your profit will be less than what you believe. Yes, you are a contractor and can do the maintenance and probably the property management yourself, but it still costs time and money.

I am assuming the PM is using a contractor to do the work. If so the cost estimate is probably fair. Figure $30/hour (12 salary for employee, 12 overhead, 6 profit for the contractor). So $20/ material and $90 labor (3 hours) sounds reasonable.

The lending officer is correct. Changing jobs will raise a big red flag right now. Banks look at assets, salary and stability when making a loan. I would suggest you hold off until after the property is bought and the loan papers signed and finalized. Then you can change jobs without any problem. It is not necessarily that the bank will automatic deny the loan, but does increase the possibly, so why risk it.

Big regional and national banks are more fixed in their ways and therefore less flexible to the needs of some of their customers. This does not mean that they are bad at what they do, just that some people prefer more individualized service. Also local banks, usually have better feel for the local community. Whereas big banks try to fit it rules to a greater area.

I do not think you can blame tenant. I do not go down the stairs into my basement frequently (maybe once every 2 weeks).

I assume the property does not have central air. If it has central air, why has not the furnace filter been changed at least every 3 months? If you replace the furnace filter regularly, you can inspect the property. If you have the tenant replace the filter (you provide the filter) you would still have someone in the area that might spot problems (HW heater, busted window, dripping pipe, etc.) and prevent or mitigate problems such as this, and help your HVAC live longer too.

I'm not sure if he can act without written permission but, He definitely should be able to providing you give him a written limited power of attorney to handle the problem. This essentially gives him to right to act on your behalf.

I do not know if a copy would have to be included when lawsuit is filed or just at the hearing. But I would make several certified copies for him and make it general (i.e. give him the power to act as the owner in all events surrounding the property located at ****** until otherwise rescinded.) Wording can be obtained from locations on the internet, and have the copies notarized.

Should have been listed as a 1-bedroom with bonus/party room.

Like Shaun, I can not recommend a book geared towards 15y.o. on the topic, however if your son has a good relationship with one or more of his high school teachers, they might be able steer him in the right direction. Also depending on the 15y.o., he may do very well understanding books and topics geared more towards adults. There are many teenagers that greatly surpass many adults in maturity, they just have a tendency to be more impatient than adults.

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