All Forum Posts by: Jacob A.

@Joe P.

I personally manage my units and I keep that money in my expenses fund for my rentals. I typically keep the 10% for Property Management expense as well as an additional 10% for all other expenses ( repairs, vacancy, etc. ) 

I know people who just take the 10% and put it back into their future investing and I also know some who take the approach I use. I think it is all personal preference and what you are most comfortable with. 

I would personally do cash for keys. Offer him 1K for him to be out in 7 days. Much cheaper than suing and getting them out is the main goal here.

Joe Papp When it comes to evaluating this expense, I recommend you build the cost into your projected financials. You may very well be able to run the property management side of your business for a while, but you don’t want to be in a position where you don’t have the numbers accounted for Personally I wouldn’t “pay myself” for managing my own properties for tax reason, but definitely have the cost factored in so when you do make the move to a property management company, the math still works on the property. Hope this helps some.

Carrie, 

I believe that this is totally up to your goals. The fact you have a rental that is paid off is great. Are you looking to continue working with rentals or are you trying to step away from the landlord lifestyle?  The rental would have capital gains tax on the growth from what I know about the industry. 

Personally I would hold the rental since it creates a lot of potential tax savings for you and if you are making good monthly income from it, no reason to sell unless you just don't want the hassle of being a landlord. 

Hope this helps

We are looking to stay in the 1-4 unit range in the beginning. It honestly just depends on the deal. 1-4 multi family is ideal, but those are limited in our local market so the single family route is the higher probability of the two.

I have assembled a three way partnership inside of a corporation and we are looking to begin buying rental units as a part time passive income stream. I am curious what suggestions and ideas you guys can offer on how we would begin getting the capital ( loans, line of credit, etc.) to grow this business. We are in the independent insurance adjusting business and are considered self employed. 1. What types of financing should we look at? 2. What financing can we qualify for? We currently have 17K pooled together and are consistent contributing an additional 3K monthly as a foundation for this new business venture.

Brant, If you will connect with me I can assist you with your questions concerning realtors in the Birmingham area.

Andrew the property is actually located in Fort Worth and I was thinking along the same lines as you of holding it. Just looking for other ideas and such

I currently own a home in Texas that was my primary residence while I was stationed in the military. I purchased the home five years ago and bought it about 20% below market value at the time for 104k. Mortgage is now at 91,000 I have had great tenants since I left Texas. One family that signed a three year lease and then wanted to extend the lease. They currently have 2 years left on the lease. The rent is 950.00 which at the time of the initial lease arrangement was in the higher end of the rental market. The payment on the home was 650 but with me moving and losing the homestead the payment has become is with taxes and insurance and everything included. It doesn't cash flow much at all which is leading me to question the future. I recently inquired about selling the home and 3 different realtors have given me a quick sale price of around 140K and average days on market in this area is 18 days or I could list for around 149k and the average days on market is 45. I am looking for advice whether I should attempt to sell this home and take the equity and reinvest or should I just ride out the lease and re evaluate in two years? I

Being a military member I would probably be looking to use my VA benefits of possible and save the cash I have in hand for repairs and such. I have funds available if i needed a down payment on properties though. I prefer to stay below 200k to be honest. I am much more interested in sub 120k homes that need work that would be solid deals for buying living in and then renting once another down payment was saved