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All Forum Posts by: Eric Gutierrez

Eric Gutierrez has started 25 posts and replied 151 times.

Post: Should you take all the drywall out or leave the good bits.

Eric GutierrezPosted
  • Investor
  • Minneapolis, MN
  • Posts 155
  • Votes 41

I'm not seeing the road being higher than the house?  I'm surprised that place is drywall inside rather than plastter.  Any idea when it was built?  They should be able to skim that and make it look great, but if it smells and you're running new electric I'd consider just tearing it all out.  It sounds like youre going to have a fair bit of new rock going in so it probably wouldn't be too much more to do those areas.  

Post: Fence issue with neighbors. Rental home.

Eric GutierrezPosted
  • Investor
  • Minneapolis, MN
  • Posts 155
  • Votes 41

How are the dogs ruining the fence?  If they are digging under it I wouldn't consider it wrecked.  Honestly as long as the new fence would look good on your side of the property I wouldn't worry about it too much.  The fence getting rough looking on the otherwise would more so impact their view and value than yours.

Post: We bought a foreclosure and inherited tenants

Eric GutierrezPosted
  • Investor
  • Minneapolis, MN
  • Posts 155
  • Votes 41

The old landlord should turn their sd over to you

Post: Twin Cities, MN Property Management Companies

Eric GutierrezPosted
  • Investor
  • Minneapolis, MN
  • Posts 155
  • Votes 41

The one place I've bought that was "professionally managed" by a twin cities PM was an up down duplex with the bathroom stacked on top of each other.  Apparently for 6 months prior to me purchasing the duplex the upper shower dumped around 2-3 gallons of water through the 1st floors bathroom ceiling.  That was not the only thing they had someone not fixed/kept up with.  

I've also seen another huge player that advertises all time on the radios where they were trying to get top top dollar rent on a house that was in a specific submarket where if you're off the lease schedule you'll be lucky to get 65-70% of top dollar.  Watched them sit on that sky high top dollar rental rate for like 3 months before they reduced.  Just because they claim to be a "pro" does not mean that they are any good.  I'm sure there are some really good ones out there as well, but there are definitely some that aren't all that they claim.

Post: Favorite Lease Clauses

Eric GutierrezPosted
  • Investor
  • Minneapolis, MN
  • Posts 155
  • Votes 41

I just picked that clause up recently.  Were you by chance talking about that in another post I might have read?

Post: Favorite ways to find good contractors?

Eric GutierrezPosted
  • Investor
  • Minneapolis, MN
  • Posts 155
  • Votes 41

What are you favorite ways to find good contractors (google, networking, angieslist etc.)  Ideally before even getting estimates.  Any ways you filter through who to call or not?  

Post: Favorite Lease Clauses

Eric GutierrezPosted
  • Investor
  • Minneapolis, MN
  • Posts 155
  • Votes 41

So what are your favorite clauses you have in your lease?  The ones that help save you $ through avoiding damages or calling out specific things that you learned the hard way

Post: How would you turn 2 million in equity into cash flow?

Eric GutierrezPosted
  • Investor
  • Minneapolis, MN
  • Posts 155
  • Votes 41
20 years is a long time.  Look at how many major companies were around 20 years ago are not today...strong finacials today doesn't equate to strong financials in 20 years, 10 years, 5 years, or even 6 months in extreme circumstances.  

Originally posted by @Joe Villeneuve:
Originally posted by @Jack B.:
Originally posted by @Ali Boone:

Well I'll throw in a few different points. Take or leave any of them, they are just what pop into my head-

- I don't agree about the NNN option. Then you're just stuck with the 6% or whatever it is...not really any way of increasing the value or the return.

- For reference, you can get a great turnkey at 8-11% cap rates right now, with appreciation potential, and with tax benefits. Those %s beat a lot of the suggestions people have given, imo.

- Leveraging is key for highest cash flow, but you may not need to worry about it with your level of capital if you just pay cash. It all depends on how the numbers pencil out. If paying cash will get you to your cash flow goals, then cool. If not, leveraging will for sure but then you are talking about the loans. You could certainly and go ahead and do the loan route now while you have the W2 so you can take advantage of it without having to hang onto that job for too long if you want it. 

- You'll only need the W2 for residential loans though. If you go commercial, it's not as critical. 

- Where are you planning to buy? If it's local, the options will be limited by the numbers. If you aren't set on buying locally (sounds like you're not), then you can just pick what feels better and has the better numbers. 

- Residential rental properties (1-4 units) are the most tax-benefited asset class available. 

- Residential vs. commercial in general: This is a a crazy-basic article, but might trigger some pros and cons thoughts for you on which to go-

https://www.biggerpockets.com/renewsblog/5-SFRs-or...

- Ultimately, what would you most enjoy buying?

Ali didn't you start out in Seattle? I see you moved south...

Anyhow, the thing that scares me about NNN leases is demand. If a company goes out of business it can be very difficult to find a tenant. I like what Grant Cardone says about multi family: EVERYBODY needs a place to live.

Analysis is still the key...as always. NNN analysis involves the rating of the parent company...and the industry.

Post: Duplex or 4-plex? An analysis from a noob.

Eric GutierrezPosted
  • Investor
  • Minneapolis, MN
  • Posts 155
  • Votes 41

Id say the biggest if in your questions is whether you can actually find a duplex or a quadplex at those prices in your specific area?  I'd think a good step would be to start looking at and tracking sales prices of duplexes/quads in your area.  If nothing else its a good exercise to learn your desired market and help you spot a deal when it comes by.  I think its hard to buy anything and get a good deal (other than luck) if you haven't take the time to your specific geographic market whether its a duplex, quadplex, car, boat etc.  

Post: How do you "harden" your rentals?

Eric GutierrezPosted
  • Investor
  • Minneapolis, MN
  • Posts 155
  • Votes 41
Originally posted by @George P.:

kyle is correct. it's actually against code to have caulk around to toilet.

 They require it here for sanitary purposes.  I always leave a couple inch gap on the far back so it can still run out.