All Forum Posts by: Jim Truman

That's one of my concerns - someone covering everything up with a quick flip reno. I'm trying to move away from condos but the age of the SFH's are a bit of a deterrence.

Hello, newer OOS state investor here. We're attracted to the Cleveland market because my wife is from the area so is familiar with it and the home prices fit our budget (<120,000). We purchased a condo in Bedford Heights at the end of 2019 and it's worked out well so far. Although I like condos due to the limited maintenance, it's tough to find ones that cashflow, the HOA's can be risky, and I know I ultimately need to get into SFH's.

I occasionally find SFH's in the Cleveland metro where the numbers work out, and some of them are very nicely remodeled. But these homes are all close to 100 year old. I know less than nothing about construction so perhaps this isn't a concern but should I be thinking twice about investing in a buy and hold property that's already 100 years old? Or are the bones of these homes solid enough that age isn't a problem?

Thanks

I can't figure out how to search the Denver forum specifically so I apologize since I'm sure this has been asked a hundred times. 

We're out of state but would love to retire in Denver in about 10 years. Since home prices seem to be going no where but up, I'd like to pick up a condo now and rent it out until we're ready to move out there. I'm interested in any property manager recommendations.  

Thanks.

 

Hello, I am putting together our annual information for my CPA. This is the first year with an investment property. I use a spreadsheet for my wife's LLC to track her business expenses and income but I'm wondering if anyone has a basic spreadsheet they use for their rental properties that they're willing to share? I could modify the one I use for my wife but I thought I'd see if anyone has one they like to use.

Also, is there a basic guide somewhere on what expenses are deductible? Are any of the initial purchase expenses deductible as business expenses (appraisals, finance charges, etc?) I assume costs such turning on the utilities in my name are business expenses. Management fees, tenant placement, initial repairs for move in, etc, are deductible.

Obviously this will all run through my CPA but I'd like to have everything categorized and ready to go for him.

Thanks

Thanks.

Ventana Asheville on Baird Cove Rd? Looks like it might be a bit pricey?

Thanks for the suggestions.

Greetings,

My wife and I will be in Asheville next week for a few days celebrating a friend's birthday. We're staying an extra day so that we can explore the area as a possible retirement location. If we like the area we'd consider looking for a small property we could purchase now and rent it out until we retire.

It may be a difficult question but I'm looking for some suggestions on where to explore in order to get a feel for the area. 

We're staying in Black Mountain and also one night in Weaverville so we'll see those 2 towns. We'll also see Asheville itself and I plan on at least driving through Hendersonville and Brevard.

Outside of the downtown areas, are there any places you suggest we check out for potential housing? We'd like to be close to the downtown areas (10-15 min) and don't need a large lot. A Condo is fine. The more mountainous area the better. I don't know if it's really possible but our budget would be around 250k. A walkable downtown with local breweries, coffee shops, restaurants, etc. 

We're in the very early stages and aren't even sure Asheville will be the right area for us so I don't need specific properties, just general areas to explore to get an idea of what the options are around the area. 

Thanks

Thanks. I should've probably been more clear. I'm interested in the numbers on this specific unit. There are very specific reasons we're investing out of state and looking at condos so I'm not looking for advise on whether out of state condos are smart investments. 

I'm interested in opinions on whether I'm thinking clearly about a pretty small investment into a 55k unit that could rent for 900. And if people agree no dishwasher is a big deal or not. 

The HOA is a bit high but remember, this includes water and most maintenance. (Apparently even plumbing but I have to confirm this.)

thanks

Hello,

I am curious to know your thoughts on an investment. On the surface it sounds great, but we're thinking about passing on it and I want to make sure I'm not crazy. We are new to investing, having just purchased our first property in August, so we definitely weren't planning on buying a second one this soon. But my Realtor found this one and that it might work for us. We are out of state so we are using Property Management. 

2 Bedroom, 1 bath, great storage, 1000 sq feet, could probably get it for $55,000.

It's a 3rd floor unit in a development with maybe 10, apartment style, buildings. 

Unit was remodeled very nicely by current owner (a Realtor/investor.) The unit is beautiful but he didn't put a dishwasher in the kitchen. The older units in the building all have dishwashers. 

The development has a large garage so it comes with 2 parking spaces.

It's in a solid B area and is actually walk-able to a shopping development with Whole Foods. Great universities nearby as well.

HOA is $250/mo but this includes water.

Our Realtor believes we could get $900/mo.

On the surface, this seems great. But we believe, and he agrees, this will probably be a high turnover type of tenant. And although he doesn't think no dishwasher is a concern, we believe the type of tenant that we'd like to attract, that would pay a little premium for such a nicely finished unit, would get annoyed with not having a dishwasher. This will increase turnover. The unit also only has an in-the-wall air conditioner in the family room. I don't know how well these work to cool a whole unit.

The cashflow seems great until I throw in costs for an annual turnover. (Vacancy, cleaning, listing fees, PM's finder fees, etc.) Once these expenses are included, it has an annual cashflow of only 940. A Cash on Cash of 6.8%. This might not be terrible but really doesn't leave any wiggle room in case it doesn't actually rent for 900, HOA goes up, maintenance, etc.

This unit probably won't appreciate all that much either.

Are we missing something here? Hard to believe a beautiful 55k unit that rents for 900 is a bad deal. Our Realtor just picked a unit up in this development so he's confident in the unit as a rental. But, he doesn't have to pay the PM expenses which totally changes the math.

We're thinking maybe wait for another unit in this development that hasn't been remodeled so nicely, with a dishwasher, that we could maybe pick up for 30, and put 10 into painting, new floors, etc, and will still rent in the 800's might be a better option?

Looking forward to your thoughts.

Thanks