All Forum Posts by: Hoang P.

Why would you send 2nd notice or call ? If your mind is made up and want to evict this tenant, just wait till the end of 14 days and file for eviction. 1 notice is enough and I suggest you find an attorney specialize in eviction to handle the process since you've never done it before. Should not cost that much. ($195 where I'm at)

Even if it got a heat pump outside, there is still a filter at the air return and it needs to be change regularly. It is a pain in the rear to get the tenant to change it. I kept hearing the same song ... "I just changed it a month ago..." yeah right. Might as well do it yourself.

Not if you charged them application fee (credit/background check). You will have to provide an answer to them.

I agreed with Bryan, but what would you do if the house you purchased got a dishwasher in there and it is still working ? Would you take it out or leave it in there? (I left them in there at my 2 properties, rather than take them out). The cabinets are in good shape except for being old. Finding another cabinet to match is too much of a hassle for me.

In my rental properties, I mainly concern with plumbing related issues and I normally don't buy the cheapest if it has to do with plumbing. Everything else, I used pretty much standard stuffs. Also, I used same interior paint color for all of them, saving me the headache when I have to repaint. (semi-gloss preferred for easy clean up)

So, let's take the QuadPlex for example:

Purchase price = 120K (assuming no repair needed as time of purchase)
Down payment 25% = 30K
Loan amount = 90K
Interest rate 6.5% (first 5 years fixed, 15 year term)
Monthly principal & interest payment = $784.00
Annual tax = 1434.34/12 = $119/month
Insurance = ? (don't know)
Utilities + PM = ? (don't know)
Total gross rent = $1700/month
PIT per month = $903
$1700 - $903 = $797

So the gross rent minus principal, interest & tax leave me with $797 per month. Still need to find out cost of PM & insurance & utilities cost per month. Does this sounds like a good deal ? Any explanation is appreciated. (I'm learning, so go easy on me :D )

Jeff, I'm trying to learn, because so far, I'm only been purchasing with cash. It must have been my misunderstanding. I've been trying to read posts in BP forum for past 3 weeks and was under impression that to calculate the offer price, you take the gross monthly income and multiply it by 50. I guessed I understand it wrong.
And yes, if I could get 1 or 2 houses refinance through conventional loan, it would work out better for me. I can use that money for down payment on next purchases. That is what I'm trying to do last few days. Thank you Jeff for the inputs and setting me straight on how to calculate the offer price.

Thanks Jeff & Will. Actually last few days I've been looking in to quadraplex & up, the listing prices are way up there. According to what I read here at BP, the max offer should be about total rent x 50 (or less)
For example, last night I saw a listing for a 4 Plex, 2BR/1BA in each unit. Total rent is $1700. Asking price is dropped from 140K to 125K. Based on the total rent x 50, I have 1700 x 50 = 85K (max offer) .... so chances are getting 85K offer accepted is a big zero.
Another one with a 6 units 4BR/1BA each with the total rent $3000/month. Their asking price is $326K. I know I can't make offer 150K on it, but how anyone expect to sell these things with ridiculous price like that. (Both these units are not too far from each other.)

Thanks Jeff. IMHO, home prices in the areas I'm concentrated on is slightly up compare to a year ago. (I don't do war zone such as downtown or west end). There are so much competition here making it very hard to get a good deal last few months. Yesterday I looked at a foreclosed SFR 4BR/2BA brick 1600 sq ft just listed on MLS for $64.5K. The ARV is about $110K-$120K and cost of purchase + rehab is about $25K+. After crunching some numbers, I called the realtor and was going to make an offer about $55K. The realtor told me he already had 6 offers above the listing price ...

Just want to update this real quick. Thank you again everyone for your inputs. I've learned so much about REI since I found this BP forum. Especially, many thanks to David Beard, who has been helping me alot last couple of weeks by contacting different lenders about my situation and gave me the information, explained things to me in great details along with many great advises.
As a result, I was able to find a bank that is willing to finance me 100% for my next purchase (purchase + rehab cost + closing cost) so I can close with no money out of my pocket. The rate is 6.5% for 15 years term, fixed for first 5 years. After 5 years, it goes to variable rate with 6% cap. They charge 1 point based on the loan amount + normal closing cost etc. There is no penalty for paid it off early, so I can refinance with them or with other bank if I wanted to at anytime. They will use 1 of my property for collateral per loan. In the mean time, I'm still working on getting a couple of my properties refinance through conventional loan as David and many members here suggested.