All Forum Posts by: Account Closed
Account Closed has started 23 posts and replied 927 times.
Post: Inherited Tenants- Existing Contract, Old Landlord on contract
- Rental Property Investor
- Central, fl
- Posts 950
- Votes 821
Edited below
Post: HOW to handle partner with MONEY💰 , no time or knowledge
- Rental Property Investor
- Central, fl
- Posts 950
- Votes 821
Originally posted by @Mo Muigai:
@Jeff Cichocki I asked them what they want they have no idea and kicked the ball back to me more like, what do you want us to do 😰😰
Ok well ask these types of questions.
What is your current rate of return on the money you could possibly invest?
What % return would you like to see?
Whatever number he says, follow up with Is that the internal rate of return you are looking for over how long?
The number he says is the goal you need to make happen via the split. So if he says he wants 8% return and your cash on cash is 10% you are going to have to give up 80% of the cash flow to get him there. Again equity kicker is a additional item.
Does he want to buy for cash then fix it up and brrrr it out? He could then get a percentage of the monthly cash flow and some equity...
this may sound childish. But take 10 pennies and 10 quarters.
split the pennies up for cash flow and the quarters up for equity. Problem solved.
Let us know...
Post: Buying first home, active duty with va loan and housing allowance
- Rental Property Investor
- Central, fl
- Posts 950
- Votes 821
Originally posted by @Tyler Burgan:
I am active duty and moving to AZ, My wife and I have 2 kids and are looking to buy our first home when we get there. I figure buying would make more sense because my housing allowance over the next 4 years would pay off about $54k off the home. I can either sell and make that money that back if housing market stayed the same or more if it goes up. If it goes down i can hold it and rent it for cash flow. If i sell i would like to use that chunk of cash to get started on owning rentals. I was hoping some smarter people would be able to give me some advice of what they would do under similar circumstances. Thank you
Trying to get my math right. So your BAH is 1,125 a month?
If you do a VA loan it takes extra time to pay down since you don't have a down payment requirement and also have a VA funding fee that adds to the debt.
Depending on what bass you are moving to I think the best bang for your buck is a 2-4 unit using the VA. That allows you to live for essentially free. You could then take the BAH and save that and invest in more properties as rentals.
There’s a million ways to do it but either way make sure your spouse is on board with the plan.
Post: What is the best way to collect the application fee?
- Rental Property Investor
- Central, fl
- Posts 950
- Votes 821
Originally posted by @Brentin Trent:
@Account Closed that seems laborious and time intensive given I will want the fee prior to processing the application. Any online alternatives?
Mysmartmove you can make the applicant pay for it. But are you talking about charging above and beyond the cost of the background check? If so you can use zelle, PayPal, or any online payment processing system.
I only charge the amount for the background check so it’s a wash for me. I don’t make money off of people applying.
Post: What is the best way to collect the application fee?
- Rental Property Investor
- Central, fl
- Posts 950
- Votes 821
@Brentin Trent for everything I only take money orders.
Post: All my casflow is going toward utilities
- Rental Property Investor
- Central, fl
- Posts 950
- Votes 821
Originally posted by @Gina Nicolas:
Hello everyone, I have 2 rental properties, 2 units each in PA where I am paying for water, sewer and heat and these bills are eating my cashflow, I am a new investor, one of my rentals, water, sewer and heat added to 600 dollars for this month, one of the reasons might be that one of my tenant is keeping her windows open all the time claiming that the apartment is too hot and when I lower the heat, she claims she is too cold. I came to conclusion to make thing better, I will be separating utilities meaning get a new boiler and new water heater for each unit so each tenant can be responsible for their own utilities, it will be costly to get a new boiler and new water heater but I think it will pay off in the long run
Any advice on separating utilities, what type of boiler and how big should it be for each unit? Each house is a 3 bedrooms unit and a one bedroom unit. Does anyone know what the best place to get water heater and boilers?
Why a boiler? Why not rip it out and put in floorboard heating in and put it on the utilities to the tenant.
Post: HOW to handle partner with MONEY💰 , no time or knowledge
- Rental Property Investor
- Central, fl
- Posts 950
- Votes 821
Originally posted by @Mo Muigai:
I’m doing due diligence on a triplex and duplex that owner prefers to sell together! I don’t have $100k to put 25% down. A family friend is interested in going in with me, he has the $$$$$ to put down. What is the best way to set up this “partnership “ in the deal? I do all the work and manage he does down payment we split 50/50? Please advise from experience or knowledge. I appreciate
There’s nothing wrong with a partnership.
What are his goals? What are yours? Make it a win win. I am doing a partnership right now and looks like a 60/40 split (60 to the Limited partners) and 40% to myself for running the day to day and bringing a chunk of money and experience.
I could if made it 70/30 and it may end up that way to ensure my partners who put up the 100’s if thousands are paid. But then the end game with the equity kicker is the icing on the cake. Some people want more cake than icing. So each time it depends.
50/50, you bring some money and run it, he brings the majority of the money
Post: $250k to $5000 a month?
- Rental Property Investor
- Central, fl
- Posts 950
- Votes 821
Originally posted by @Terry N.:
@Eric C. Does that translate to approx $1,700/mo.
Not sure I’m understanding (not surprising). You are paying 8% for $250k...
I’m talking about starting with $250k of non-borrowed cash.
I do see what you are saying about the 24% return. I should have clarified I meant over a 3-5 year period. Thanks for your comments.
If you have 250k in cash to invest. You could do medium sized multi family up to a million purchase price that would allow you to immediately cash flow. You could reasonably make 5k a month after 3-5 years and some other investments using the cash flow.
Post: $250k to $5000 a month?
- Rental Property Investor
- Central, fl
- Posts 950
- Votes 821
Originally posted by @Terry N.:
Somewhat hypothetical question. If you had $250k to start with. Could you turn that into $5k+ a month? How (generally or specifically) would you do it? Thanks!
I mean that’s a 24% return on your 250k. If you are looking for passive then not so much. Flip things or strategic investments as a hard money lender and probably after 5-10 years.
I’m paying 8% for that amount of Hard money right now. So triple that seems unlikely out the gate.
Post: What Would You Do First: Rental Property or Primary Residence?
- Rental Property Investor
- Central, fl
- Posts 950
- Votes 821
Originally posted by @Da Shiek Woodard:
@Eric C. Multi family units are not common here unfortunately, at least not 2 - 4 units that would qualify for 3% down. House hacking is always an option, just a bit more challenging for families because of the security logistics involved. Great points though on your part.
There’s a million options for wealth generation. I agree with Buying versus renting. Might as well pay your own mortgage versus someone else’s.
Where there is a will there is a way, just need enough motivation to get out of the rat race and into the wealth generation game.