All Forum Posts by: James R.

There are a lot of factors that can affect cash flow per door. The minimum the rest of us use really doesn't matter. What you need to figure out is what's the minimum per door you need to make it worth your time/effort. 

To answer your question though. I need a minimum of $150 per door and 15% CoC or greater. I run my calculations as if I'm paying a property manager but I manage the properties myself and pay myself that fee.

@Meleana Tuimoala 

If the lease starts on February 1st then security deposit and one month's rent is due prior to move-in. The next payment due from the Tenant would be on March 1st. 

If the lease starts on a day other than the 1st of the month then you should still collect a full month's rent prior to move-in. The tenant would then pay the prorated amount on the next payment; month 2. Example, Tenant move's in on the 15th of a 28 day month (February). Monthly rent is $1000. You'd collect your security deposit plus one month's rent of $1000. On March 1st the prorated amount from the previous month of $500 would be due from the tenant. April going forward is back to $1000 a month due on the 1st. 

Always get the largest sum of money you can prior to move-in. You don't want someone to move into your property at the end of a month for a couple hundred dollars then a week later stop paying forcing you to evict while they live free for a couple months.

Hopefully this makes sense. Always good to check your local laws to make sure this is allowed. 

@John R. Whittington

Either one could work. The new door slab width might not match the jam requiring you to trim the width. I just put in a new slab on an old jam which required a quarter inch reduction in door width to close properly. You'll also need to chisel your hinge inlays. Another thing to consider is trim design, will a new pre-hung match the rest of the property trim? 

If I were replacing a door that a tenant put a hole in then I'd just buy the slab and cut to fit. If it were part of a rehab then I'd go with a pre-hung. 

It's possible to find MLS deals with some work. They might not be home runs but base hits can win ball games.

I just finished a BRRRR on a home I found on MLS. All in at $140k (purchase, rehab, holding), ARV $180k, rented at $1625.

Current property under contract off MLS at $112k, needs $20k in rehab, ARV $165k, expected rent $1500. I anticipate this property to appreciate nicely over the next 5 years as the city has a"Master Plan" which is dumping a ton of money into the area.

@Don Nelson 

I do not know of a lender who doesn't have that restriction on a HELOC.

@Don Nelson

Yes, many banks will cap you at 4 properties so it's a good idea to pull the HELOC on one of the first few if you plan on using it multiple times to acquire new property.

@Don Nelson

PenFed - Pentagon Federal Credit Union 

If you don't meet their government/military membership requirements then you can always make a small donation to their charity to qualify. I have a HELOC with them.

PenFed will do up to 80% ltv on non-owner occupied.

You should bring it up now, maybe the landlord believes you and gets it fixed at no cost to you. If you wait till move out when he finds it then you'll definitely be paying for it.

In my opinion, upfront and honest is the best policy. 

You could do a hard money loan or private money then refinance after purchase or use a HELOC if you have another property you can borrow on.