All Forum Posts by: Eric L.

@Kat Hughes I would return the refrigerator for a full refund if possible and get a cheaper one suitable for this space. Chances are no one will want to pay to have it moved when the lease ends and it can’t be split 4 way.

I hope these kids learned something from this; always read agreements before signing and due your due diligence before renting or buying a property (talk to the neighbors).

@Gregory Schwartz - no problem. I would add that Mom and the aunties should qualify for the loan on their own and not name your grandfather on the mortgage if possible.

The remaining 20% could be gifted as well as a down payment or gifted over time (possibly held as a 2nd lien (?)), or your grandfather keeps the 20% share.

Since this is a 2nd home try to avoid commercial loans that some larger banks will try to push on you. They should be able to get a conventional loan with a low interest rate.

Alternatively, how would your grandfather like to be a AirBNB / VRBO landlord ;)?

@Gregory Schwartz - would he be open to cash out refinancing 80% of the home's value and adding the ladies to the deed and mortgage? The ladies can pay the PITI moving forward.

@Syed Hussain - Did you or your tenant opt not to extend the lease or did the lease extend automatically for another year or month-to-month? If your tenant is now a squatter then an unlawful detainer may be the appropriate filing in your state. Consult with your real estate attorney. If the lease extended for another month then your tenant owes you a rent payment.

@Nicholas Fisher. It’s a sanding nightmare probably because you’re using the wrong tools for surface preparation. Use a handheld belt sander to remove the paint and stain. Use the orbital sander to remove any scratches or gouges from the belt sander. Use a detail sander or sandpaper wrapped around a wood block for areas the other sanders could not reach. This should be fairly easy since you have removed the rails.

@Anthony Wick, I was totally kidding about the use of duct tape. But I would question if a $200 charge is appropriate for the damages since this estimate was just a guess. Is it a glued down mirror or a clipped on mirror? I don’t know, there’s not enough info.

My #1 goal is to make the home tenant ready and so the furniture needs to be fully operational and safe for use. I would consider permanently removing the mirror to prevent this from happening again if that is possible without ruining the furniture and is easy to do. I would also replace the vanity if that was necessary and deduct the exact cost of materials and labor from the security deposit.

Regardless of the number of homes, I wouldn’t be furnishing each home with vanities with mirrors inside them. This seems like the wrong product for the home. Then again maybe I’m picturing something totally different than the subject vanity.

Out of curiosity (I’ve only had 1 tenant turnover with no damages and don’t have the experience), do you make up your own repair estimates or do you charge actual repair costs to you? Bc you suggested charging the $200 (which I understood to be the landlord’s guess) when the actual cost to fix can be very low or far exceed $200.

@Jim Morris $200?!? A roll of duct tape to fix the mirror doesn’t cost $200. If it’s inside the cabinet, I would remove it and not replace it (this costs $0), write a check for the full deposit, stink palm it, and send it to your ex-tenant.

@Elenis C.

Good read and congratulations on your success. On property 1, is your cash on cash return more like 14.6% (cashflow x 12 / (down payment + closing cost + rehab). Am I missing something? Were closing costs excluded in the after rehab evaluation?

I’m continuously working on my before and after purchase evaluations and often find an oversight in my calculations. What expenses make up your operating costs for your homes?

@Philip Abbey

There is no reason anyone should be paying interest on a CC. There are plenty of CCs that offer a 0% interest rate for 15 or 18 months and you can transfer your balance to the new card at 3% interest. There are a few cards that would allow you to transfer at 0% interest. Double digit interest rates are designed to keep you in debt.

Interest from school loans is tax deductible to a limit. Also if you were to file for bankruptcy, the CC and car debt would go away but the school loans likely can’t be wiped out. This is why I think student loans are dangerous.

If your car’s interest rate is low, I would make the minimum payment. For high interest, I would sell the car and buy something cheaper leaving you no car debt. Leasing might be a better option for you keeping the payments low.

Work with a mortgage broker to get a pre-approval. If you do not quality then focus on debt pay-down per the broker's advice. If you qualify, create REI goals based on what you can afford and learn how to analyze deals. If you can't find RE deals then find another investment or focus on paying off your debt. I try to chase the highest return on my investment without putting myself at high risk. Always look for multiple ways to buy a deal or exit a deal. Good luck.

@Kyle Glasgow

Delayed financing will have closing costs and won't work with numbers you've just shared. So a HELOC may be a better option since closing costs are insignificant and the LOC will be based on your appraised value. Univest offers a LOC on investment properties up to $100k.