All Forum Posts by: Jaron Walling

@Ethan A. We love our pets but at the end of the day pets are a luxury. The majority of landlords don't allow pets in there properties. The risk of property damage or a lawsuit from a dog bite is too high. 

Did you collect a pet deposit?

Did you find any prior knowledge (tenant screening) of pets moving in?

When was your last inspection?

If you had no knowledge and they broke the lease I'd issue a notice of non renewal, but give them the option to remove the cats. If they started with two cats, and you were fine with it, maybe allow it. You can compromise without loosing good paying tenants if they pay on time. 

Follow up with an inspection with the timeframe stated in the notice. Get all of the notices in writing and keep all text message/voicemails for your records. Follow your state regulations on notices but do everything you can to avoid an eviction. Nobody wins in that situation. 

Best of luck. 

@Daniel Baker What do you mean by breaking even?? What's the cash-flow after expenses? What are the comps selling for (last 3-6 months)in the neighborhood?

You said you've owned the property for 8 years; that's like 2017 which was a prime time to buy. Unless you bought in D class, very low appreciation area, you should be sitting pretty. 

@Kane Spangler There's a since of pressure to build or buy RE in your post. I would slow down and think about your BUDGET, what you can get for $30k, and how you can increase your income. There's a post right above mine from a lender... there's always a lender offering $$$ even when people can't afford it. 

What can you sacrifice to achieve your goals without being overleveraged? That's the question that needs answered. Getting a mother-in-low to co-sign is not the answer. "Before borrowing money from a friend, decide which you need most". Having a co-signer doesn't feel like that at first, but you can't predict the future. It could negatively impact the relationship. 

I hope none of your family or friends were hurt during the floods. 

I bought my first house and got into REI for control, stability, and the opportunity to solve problems.

This sounds like the opposite of that. For those reasons.... I'm out. 

@Keith Angell What are your long term goals? Are you still working the 9-5 job or retired? You're very under leveraged compared to most investors trying to scale. You a big Dave Ramsey fan?

You have numerous funding options so pick your poison. Personally, I'd cash-out refinance into a 30 or 15 year loan. If rates come down (most likely not in 2025) you can refinance or just shovel cash-flow and pay it down quicker. Depends on strategy and long term goals with REI. Depends on which property you pull equity from. If you're hesitant to take on a long-term loan do the 15 yr. loan in your name because you'll get a best rate.

HELOC are great for short term lending. It makes sense for your new build but you'll have leverage something (fixed rate) to get out of that loan.

You're crushing it man. You basically own 3 paid for properties. We're trying to get our first rental property paid off with extra cash. Amortized loans... booo. Cheers. 

@Caryn Fischer  The downside of gifting or selling property to your children is that it can have capital gains tax consequences. If your children decide to sell it (you can't predict the future), they will likely face steep capital gains tax. 

When transferring real estate as a gift, it does not receive a step-up basis, as it does when it has been inherited. It's a big reason to think about estate planning, trusts, or just selling the house on your own. If you sell your property, the tax basis (original cost) of the property for the giver becomes the tax basis for the recipient. It's no where near as beneficial for your children. 

I would strongly advice consulting with an attorney or financial planner to discuss your options. This could be tied to your will. If you have considerable equity in the property or multiple properties it's even more important. There are numerous professionals in these forums.

@Alex Houser You need more numbers and a proper inspection to justify the price. 

Summary of expenses

NOI

Cap Rate 

Condition of the building systems  

@Troy Smith We had an appraiser miss a 1/2 bath in the basement one time. Because I meet at the property and asked if he had any questions I caught it. He went back inside and got another photo of the bathroom. It was a small $$$ project but time consuming because that was something I DIY'd while living in the property. I know it helped our value. Every dollar  matters when you're starting out. 

@Troy Smith If this is your first BRRRR deal I'd meet the appraiser, shake hands, and provide a paperwork describing all the renovations you completed. I usually provide our budget as well with totals spent. It's a great way to showcase the improvements made and helps appraisers not miss stuff. A lot of investors provide comps (residential RE) but I avoid doing it because it's like telling them how to do there job. Hopefully you bought right in an area with comps so they can them. That's the tricky part part about investing in rural areas. 

It's such an exciting part of the process! Best of luck. 

 I'd pick the closing day if they already live there, but haven't signed the lease. The lease starts once you close on the property, collect rent, security deposit, etc.