All Forum Posts by: Frank Geiger

Are you saying the total duplex rent is $1500 or $1500 per side?

Proceed with the same process you have for any tenant that does not pay rent in full or on time.

Depends on what's common for the area. If this is a college rental, I would look into letting the tenants splitting the bills. Sometimes peer pressure gets the bills paid. Otherwise, including services in the rent for fixed expenses is a good idea. Variable expenses like water or electricity can come back to bite you. 

Don't get hung up on the cap rate. Ask for proof of rent or leases and then perform your own analysis. Look at comps if there are any other MFH in the area.

No I don't. But I like the idea. It really does take a lot of time and a few trips back and forth.

Anything is negotiable. The cosmetic condition in an older house is obvious and wouldn't really impact an inspection report. Electrical not up to code and smoke detectors (not a big deal w/ battery install) definitely warrant some negotiation as they aren't obvious to the typical home buyer. The seller can probably fix these issues for 1-2k. What's the impact that has on holding the property for another few months? Is it worth it? You might find another buyer that wants that same issue corrected.

It all really depends. Other properties that are built in the same year are probably selling in a similar condition.

Find someone with credibility in the market (someone on BP with a good rep is a start), judge their integrity, leverage their team, and then visit areas they suggest. When you fly there meet with PMs, etc. 

Start with an investment that won't cost you your livelihood if it went south. For example, a 75K property over a 400k one. Then adjust as necessary. 

You can't sell or REFI the property and need to come up with 40k or pay 20% interest. If it's your first one, I would assume the worst. The high interest can extend the life of the advance for a long time.

Ultimately up to you. You will pay a lot in tax if you flip. But it may be the cost of doing business if it allows you to buy 2 or 3 more cash flowing rentals. 

They have cards for 0% APR for 12 months. I have used this technique before and found it rather stressful. I would make sure to have several exit strategies. 50% utilization for a few months will have little effect on your credit over the long term.