All Forum Posts by: Charles Kao

@Nick Rose Nick you have put alot of thougt into it so I think you should make what you think is best decision because they all seem like viable options depending the quality of the property. My input is that with yor lofty goals I think you need to do more leveraging rather than focusing on paydown. For example if you are buying a house with no money down that is only making 150 bucks a month then you still have unlimited return on investment where as if you spend 120k on a downpayment but that takes 4-8 years to recoup what you invested you are still ahead for 4-8years with the first property. Ann Arbor is a strong market so if you hold onto a home for 15 years you will easily have alot of equity to create a nest egg for your kids. The income is never completely passive so it will give your kids flexibility to sell at a gain if they choose to or manage the portfolio you build for them. You can always be conservative and not take that equity if the properties appreciate.

@Robert Nason  I realize I did not buy any goodwill or benefit of the doubt with my first post, but if you saw my properties they are in way better condition to start than most rentals people are buying for their renters.  Reason why is because I started out doing live in flips or househacking so I lived in these places myself and/or I purchase from owners that lived in the place themself.    It is my experience that renters do not take care of something nearly as well as you will I and I will not get the return on replacements in my market because if someone is going to pay 2-300 more for upgrades then they may as well buy their own house for the same money.  With that being said prior to relocating, most of my tenants who moved out for pets did not move out because of the lease but rather because they got married, relocated for job and other things.  I am also quick to respond to tenants while in their lease so I am not sure why you would take offense to something you or any other landlord would do, if it required.  I don't see it as being unethical to not upgrade unless required or horribly aesthetic and I would say that I percieve I am in the majority when buying turnkey properties. Now if I am buying a foreclosure, I am not upgrading, I am replacing.   If the foreclosure is 85 years old then naturally that is going to be an upgrade over existing cabinets even if I go to home depot and get stock cabinets in most cases.  For purpose of this thread I think there is confusion on whether we are talking about replacement vs upgrades now.

Ok that was now what I meant by that posting. First of all the main reason I rent to pet renters is because I am a pet owner so I like to give that opportunity to other renters. Secondly, I also know being a pet owner that there are certain things that always seem to be replaced not necessarily upgraded when a pet renter leaves, for example flooring. I go in with this assumption so I don't upgrade but my preference is always for the renter to stay so I don't have vacancy and also offer the opportunity for pet owners. With that being said, being a pet owner I know it's difficult to find housing for pet owners because of the things I have outlined. I am not pinning payments on pet owners, I am just saying it's a high reality that there will be things replaced because of a pet, more specifically a dog and often times repairs often exceed that of what the pet deposit is, but if you intend on wanting to replace anything there is no harm done because it is better to do what you need to do rather than want at least in my area.

I don't upgrade anything generally unless I have to or its a complete stopper. I just clean and paint and charge a high security deposit by allowing a pet. Once person moves out I generally I am able to find cause because of the pet to keep all of security deposit so I use that to upgrade place. So basically I use the pet to get me market rent or higher and rented quickly then I renovate with OPM to get the same market rent and stop marketing to pet owners.

@Rafie Ahmed  This is a great source but as a heads up make sure you utilize real estate professionals such as a lower and a CPA.  I am actually fine with sharing both of mine with you if you'd like but I also think there needs to be a personality fit as well.  I am in Rochester all the time so maybe we can have a meetup!  I already met @David Rawls

250-275 a square is what I normally pay a square for roofing shingles for a job that size but maybe as much as 300 if you have a steep pitch, and or lots of fire and ice.  I just look at home depot to see what that runs.  This does not include tearoff and dumpster but that price still sounds kind of high. Shoot me a PM and I can see if my roofers will go out that far @Brad Starks

welcome!

Erick Caffarello George P. I agree with my friend George. He has a way of being to the point haha. My question for you is if there is a guy that does all this. Do you think he would prefer to work with a newbie investor or a list of experienced investors that I'm sure already know of him. Lastly if he does all this he probably does not want to work for you but is competing against you. I would suggest investing more time into this yourself as you said you are in it for the long haul before aiming for the holy grail of agents we all want. I found that agent finally ....its my wife. More than likely you will become that agent or have a team of people that want to do all this. If someone does know somebody like this I honestly am not sure they would want to share. Its like my contractors, I refer them to a buddy once and all of a sudden I am stuck trying to find new contractors because my guys are not available because they are busy with work for someone else.

PM me

Curt Frieden I invest in manufactured homes and what kills me most is lot rent. If there is no lot rent, I would consider it but I only buy manufactured homes if they can pay itself off in 2-3 years. You will not be able to sell it in most cases and if the park does not like your home if it is in one they will raise your lot rent or ask you to move it and then you are screwed especially if permanently affixed. Permanently affixed is also required by many banks to loan but only up to 15 years so you could be caught in a bad situation. I buy manufactured homes for no more than 4000 with rents at 800 and this is in one of richest neighborhoods in Michigan. I have never ever ever heard of the manufactured homes drawing more rent than a stick built in same area unless its on a lake but I would give up the naming rights to my next child that is not true under similar circumstances. Now if its a mile away but in a better school district or has way more amenities thats probably only possibility which Ive dealt with. Feel free to reach out, I am actually buying a manufactured home for 500 bucks and 3 months free lot rent as we speak.