All Forum Posts by: Andrew S.

Andrew S. has started 51 posts and replied 1006 times.

Take him to small claims court and see what the judge says. I bet that you will NOT be on the hook for the entire bill. Some of that will be judged "normal wear and tear". Especially in NYC...

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That is pretty much market rent around here for a place outside of the Wolfline service, unless you have a brand new place with some amazing amenities. How much are HOA fees - those will likely make or break the deal for you. If they are low, 139 k for a 4/4 could be a steal, but I'm guessing you'll find them to be significant

1 Vote

3.9% - BB&T

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Originally posted by @Avi Garg:

Will Gaston some these were owner financed properties, I am guessing the owners are the ones holding the notes. So you want them to take less money on the property they sold? Why should they? They are sitting in a comfortable position that if you default, their is good equity in the property.
Obviously they don't need the money right away and that's tree reason they owner financed it in the first place. I think if you bring up taking less money with them, you will just annoy them.
Instead as one of the posters mentioned, be friendly with them and let them know you are going to refinance and maybe they will become your private money lender.

I agree. While it won't cost anything to ask, I'd be very surprised if they were interested unless they have, say, an urgent and unexpected need for cash. After all, lenders usually attach pre-payment PENALTIES wherever they can (especially for commercial loans), rather than rebates.

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Norman Praet in Raleigh

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Originally posted by @Max T.:

I like Lowes.

Better customer service.

5% off everything with the credit card. No minimum.

I used to find customer service better at Lowes too, but in my experience (and for our area stores), this has clearly shifted back in favor of HD over the past 5 years or so. Now, Lowes stores seem understaffed with employees trying to hang out "in the back" and away from customers, if they can help it. Also, I find many of their shelves a total mess. Items not in the right place, out of stock, etc. etc. I'm moving back to HD more and more, after 20 years as a loyal Lowes customer.

1 Vote

Originally posted by @Joshua Hollandsworth:

I know the title is awesome. I would like to hear from all of you, the professionals! Though I am a newbie, please don't assume that I haven't done my due dilligence. I have been studying real estate for a few years. But you guys are in the field, and I ALWAYS want to learn. SO HERE WE GO!

I am about to sound like an amateur, prepare to laugh at me....

For the first time, I am thinking about not including CapEx in my Cash Flow Analysis. I do not think it makes sense to put away 30% (Vacancy, Repair, CapEx) For "What If" scenarios.

Here is what I got....

1. I do understand that it is a bad idea to invest in real estate without being aware of these expenses. A couple experienced investors have said that these expenses are so you don't "Get caught with your pants down" Right? Well... that makes sense! BUT, you are going to pay out of pocket regardless. Because it is deducted from your Cash Flow, so regardless of where the money is, or when it is there, it is being taken out of your pocket.

2. Vacancy and Repairs are a controllable factor. If you screen tenants correctly and find GREAT long term tenants, vacancy and repairs should be minimal. But let's put aside 10% to be safe! I am ok with that!

3. Isn't that what reserves are for? If i have say, 5k in reserves for a small SFR, (50-90k) then I shouldn't have to save half of my "would-be profit" for these repairs.

4. "BUT NEWBIE, IN 5 YEARS A NEW ROOF COULD COST YOU ALL OF THE CASH FLOW YOU HAVE MADE THUS FAR.." Think about that.... so will you? Say I have a duplex renting for $1000/mo. My PITI is $500. If i don't include CapEx, let's just say I take home $500, for the sake of simplicity. **I AM NOT SAYING IT IS OK TO SPEND ALL OF THIS, IT WILL ALL GO INTO THE BANK TO REINVEST/RESERVES** Say you also have a duplex for $1000/mo PITI $500. CapEx+Vacancy+Repairs leaves you with $200 cash flow, but you have $300 going in the bank for "What If's" ( I am making these numbers up. ) SO. 5 years later both of our roofs need replaced. I pay out of pocket. You fix the roof with your CapEx money! If you claim, I just lost all of my cash flow for the past 5 years, ($500/mo) Then you definately lost your $200. Even though you had $300/mo to fix this, it is stil $500/mo either way.

5. "Brandon Turner's book tells you to..." I believe that his CapEx chart was a little high.. great reference tool! But $5,000 for windows... what are the chances they break all at once? And a roof on a small home shouldn't cost $20,000..

6. $500/mo Profit vs. $200/mo Profit. Your cash flow is simply what YOU say it is. You could put $300/mo into an account... or you could consider that $300-Income.

I understand why people deduct it but do I really have to? I am not trying to sound smart... and I am not under-estimating anybody's intelligence. I just really want to learn! "Explain it Like I'm 5!" Right? Thanks, Guys! Please excuse my horrible grammar.

Looks to me like you are creating a problem where none exists! You are absolutely right:it doesn't matter what you "label" the money. At the end of the day, you have to fix your roof and spend that cash. Creating individual "buckets" for different expenses makes it easier for some people to keep track. Personally, I don't have different savings accounts for CapEx, maintenance, turnover, etc either. All comes out of one pot - but the important point is that the pot is large enough so you can withstand a series of unfortunate coincidences with roofs, pipes, appliances all breaking in one single month.

So what the experienced investors are really telling you is to MAINTAIN SUFFICIENT RESERVES. What you call them doesn't really matter

2 Votes

Originally posted by @Taz Patel:

We are in Florida so I have 30 days from March 20th

Not sure if today April 19th counts since this is the 30th day
I have pictures of the damages and receipts for work but they are only close to $1000
Receipts have handyman work
There lease expired on April 14 th and i gave them 6 days to repair damages
I have receipt for cleaning, pest control , Ac repairs , dish washer repairs
For some items i do not have receipts

I sent them a copy of notice via whatsapp
Is that admissible in court or can i send a new notice today ?

AC repairs, dish washer repairs and such are most likely going to be deemed "normal wear and tear" (unless the tenant somehow physically damaged the equipment on purpose). Cleaning and pest control may or may not be considered reimbursable, depending on your lease. If those are your only claims, then I would push back too, as the tenant.

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Uncle Sam wants you to determine land vs improvements with one of several methods that are based in reality (not based on what works best for you to maximize deductions). Usually, your local tax authorities (the ones that determine your property value/taxes) will have already done this and you can use it. Or you can challenge it to try to get readjusted, if you have reason to think it is off. Another way that I believe would be acceptable to the IRS is to use "rebuild value" for the improvements from your homeowner's insurance. Third, if you can come up with credible comps (I.e. recently sold similar land) for the lot, you can use that as the basis for your calculation. There may be other methods - the bottom line is that you need a credible way to back up whatever numbers you propose (how you arrived at the number and why).

@Steven Hamilton II will set me straight if I'm off....

3 Votes

Originally posted by @Andre Vitalis:

Hey all, An investment strategy i am pursuing are properties i can acquire under 'Sub-to' terms. I would then want to find tenants i could offer lease option terms to. I'm in the Raleigh, NC market. Besides my local REIA, who else could i contact for info on finding qualifying applicants i can offer rent-to-own options to? Craigslist maybe? I would want applicants would could qualify for a loan at the end of the lease agreement but I guess i would also want potential applicants would can't qualify for a conventional loan because of not so good credit. Does that make sense?

Reading through and recalling previous threads, your strategies are tricky in NC as laws have changed. Look for discussions by

@Karen Rittenhouse

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All Forum Posts by: Andrew S.

Andrew S. has started 51 posts and replied 1006 times.

Post: Hardwood floor damage

Post: Money down on 4/4 Condo in Raleigh? New investor.

Post: HELOC Interest Rates

Post: How should/could I ask my note holder for a discount?

Post: A good eviction attorney in Raleigh, nc

Post: Which is better Lowes or Home Depot

Post: Up for a debate? Prove me wrong.

Post: Tenants want to sue me over security deposit

Post: Land vs structure value

Post: Finding tenants for Subject 2 lease option financing?