All Forum Posts by: Account Closed

All properties should require at least $5k in repairs. Then, estimate $10 per sq ft for cosmetic damage, $15 per sq ft for moderate rehab, and $20 for significant rehab. The cost to completely paint the interior of a house (walls/ceilings/doors/trim) will run you $3k to $5k alone.

Wow @Dennis M. dropping some truth bombs with fury. 

But all joking aside, always have an 'out' in your lease agreements. I.E. "It is understood and agreed that a single violation shall be good cause for termination of the residential lease. Unless otherwise provided by law, proof of violations shall not require criminal conviction, but shall be by the preponderance of the evidence." I am not a lawyer, but in my opinion, a strong odor of Marijuana is preponderance enough, even better if you have a witness smell it too. 

@Sean O'Lone Tricky situation you are in here. On one hand, you can realize an additional $2,400 per year with a new tenant ($1850 versus $1650). On the other hand, since your tenant has been in the property for so long, you will likely have significant turnover costs (all new repaint and flooring likely). Rising rents indicate you may be in a Landlord's market so I would be inclined to go all in and raise the rents to Market. If it means losing a good tenant, so be it. 

@Jason Brown Looks great! I have a question about the Tiling in the Shower Enclosure. I've seen a lot of rehabs lately with large 12 x 12 tiles opposed to subway tile or something else. Was your decision to go this route cost based or is this a new trend?

I agree with @Costin I. here. The only way to find true cash flow is via value add rehabs that you find off-market. Last I checked the, least expensive single family dwelling for sale I viewed was listed for $200k (north-west suburbs) and the market rent for such a place varied between 1200 and 1400. Definitely not a smart cash flow play. 

@Matt Heerwald if you are accredited and have $100k plus to invest, then reach out to @Bruce Petersen - he is the Apt Guy and works predominantly in Austin and San Antonio. Great Guy too. 

If you are not accredited or have less than $50K to invest, then you may be hard pressed to find an opportunity you can just walk into because of SEC regulations. Although, I heard Grant Cardone now has a fund for unaccredited investors. Not sure what the preferred rate is but if I had to guess probably 4-6%. 

I got excited... then I noticed the Pro "Annual" requirement. 

@Vijaianand Thirunageswaram Regarding your returns, I notice that you are a broker, do your returns include the commission you earn on the sale?

Our Ocean's are rising so keep that in mind when investing near the coast. If you are in too low lying of an area, it may not be the wisest long-term play (unless we start building dwellings under water!)

@Dave Kansagor Like you, having owned a SFH Rental already, I am also looking at MFH now. The way I look at these deals are, first and foremost, what are current rents compared to the market? Can I raise rents immediately or should I rehab to a certain degree to justify the rent increase. Since the owner bought it in the same year, he likely has the rents maxed out. How many doors on the property? If it is 5 or more, then it is a true MFH so you should ask for the rent roll as well as the T12 (or what he does have of it) to gauge the expenses. Since you are inheriting tenants you will want to know if they are consistently late or behind on rent. Good Luck!