All Forum Posts by: Justin Polston

@Shoshana Shulman as a starting point, for comparison purposes, at 4% for 20 years, that's about another 33000 in a mortgage. That's simple comps since different hoas have different coverages and you can obviously narrow down your numbers much further.

@Ken Lagana

Do you have a lease break fee built in to your lease?

And you should automatically be keeping that deposit as liquidated damages. There is a double dipping rule to keep in mind, you can't sue for future rents if you get the home rerented pretty quickly. However, if the tenants left the place in shambles and you lost 3 months of rent this year because you had to put the joint back together, you can sue for those 3 months. You might even have a claim for a month because yes, December and January are pretty dead when it comes to new lease-ups. But that's what the SD is exactly for... Liquidated damages.

Going forward just don't do another 12 month lease right now... Do a 6 month so your lease staggers in the middle of summer instead of winter.

@Arthur McCormack yes charge late fees, no problem there. SOL on any initial walkthrough checklist but you definitely deserve right to visit with a heads up given.

Listen, you cannot keep that pattern going. Give em an inch they'll take a mile...

In indiana you can file eviction proceedings on the 11th. Each county is different but if you want to avoid this pattern any further, go ahead and file and set a precedent of all business, if they bring in rent prior to hearing plus late fees you'll table the eviction until next month and so on.

Explain with an eviction on the background they'll never rent again (I mean maybe a mom n pop landlord) and if they willingly vacate and keep home in good order upon move out and set up a payment plan, you'll drop the suit. If you want them out bad enough to them to use the rent they might have for you towards their next place. Trust me, getting possession back is almost more important than the balance owed. Work on collecting after possession.

@Ryan Horan

We just took over management of a section 8 tenant outside of Indy.

We were not involved in the owner's purchase, but switching between PMs was easy peasy. HUD has a form, get the w9 in. Rent started coming in.

Make sure to be correct on dates and be timely in the paperwork to keep your monthly cashflows in order if you tend to run tight.

Can't speak for the rent rates in indy, we focus on suburbs. But seems like rent floors are on the move....

@Karl McGarvey I'll check into it, not good!

@Karl McGarvey we are literally a one stop shop, and are looking to add on more clients into our portfolio.

I'd be happy to discuss what we do and see if we are a good fit! Definitely feel free to check out our website and my experience. We can give a long list of referrals also.

Thanks!

@Erik Stewart loving these stories! This is turning into an awesome thread!

My first memory of knowing I never wanted a job and wanted to make my own rules was when we weren't allowed to have candy on the bus anymore:

We were poor, our grocery store trip was shopping at the GFS (Gordon Food Service) in south side of Indy on Sunday afternoons. I had to have been in 2nd grade, and I loved starbursts. I would ask for them in line, always. This particular trip my mental math must have kicked in (common sense, etc) because it occurred to me, you could buy one pack of starbursts at the front check out line for $1.00 or a pack or whatever it was, or a 50 count case for $20 in the back of the store. So I remember asking my dad for a $20 and he said, "Why so you can buy 20 starbursts?" I replied back with, "if I borrow $20 and pay back $25 come Tuesday, is that ok?"

Monday morning busride, I am the dealer of the finest starbursts on the bus route, all colors and flavors. I sell 48 packs of starbursts for $1 apiece, paid my dad his 25 that afternoon, and pocketed 23 bucks, and had 2 "free" packs of starbursts.

@Kai Van Leuven definitely see both sides of the fence but if you plan on owning and retaining and being in the business for next 35 years you should buy everything you land on asking the way. Regardless if it truly meets your criteria but wholly agree with as long as it is simply a quality town/area/property.

1. Time value of money coupled with low interest rates, 2. all the fed is trying to do is create inflation (meaning rents are up but your mortgage stays the same) and 3. almost 100% chance of massive equity creation in and over 30 years... triple threat!

@Bobby Pagliarini awesome question I love it. Glad you're beyond "I think I want to buy an investment property" and thinking "how do I buy 10 more."

1. I'm a big supporter of creative financing and OPM. SO KEEP YOUR CASH ON HAND and use it to secure wholesale deals or off market properties then just refi out asap. (There are thrifts and savings & loans that don't have much of a seasoning period here in Indy area.)

2. Use the hard money for riskier business or bigger value add projects that'll tie up your cash for 4 to 6 months.

3. Buy things on terms if possible. Use small down payments and work deals backwards to cashflow your $100/mo after all expenses and negotiate a good payment.

4. Go after package deals. We broker a lot of package deals and get investors to their numbers quickly. If you're going to own one might as well own 100. There is less risk with what is perceived as more risk. One vacant rental out of only a one home portfolio means 0% occupancy...out of a 10 unit portfolio now we're at 90%... And so on.

Good luck!

@Zackary Voss definitely feel free to reach out man!