All Forum Posts by: Stone Jin

If they are going to break their lease, then follow your lease on how that is to be handled.  I normally just keep their deposit and tell them to have a nice life.  However if they trashed my place then it's a little different.

I think the general consensus is if you have a better home for that money then take it out and use it, otherwise just leave it there.  I was recently offered a portfolio loan for a significant amount at 6.15% 10 year fixed interest only.  I would happily have borrowed except I can't find a home for the money.   Our goal is for cashflow so I have the option to stop working.   I just don't see the benefit of borrowing money so I can pay interest while getting .025% from the bank.  If I was in heavy acquisition mode, then I probably would.  

There is no one size fits all solution to this, as the internet has proven time after time.  

Our criteria is pretty simple.  25% down at least 10% Cash on Cash return and minimum $400 cashflow after expenses and debt service.  

@Account Closed is doing that but he is a master at wraps and other creative strategies, however on just plain old MLS, I'm not seeing these numbers in Phoenix at least not in neighborhoods I would invest in.

@Bruce C. I hear that.  I bought a house with 4 window units and the first thing I did was install central air.  Mini splits are expensive so I was just thinking since the house is only 650sq ft why not just cut 2 vent holes above each door to bedrooms.  I've seen that done as well.   That way the whole house in theory should be the same temperature.  

Would it be more cost efficient to have window units for each bedroom?

I'm not an attorney, but why can't you just quit claim from your llc to your name and refinance and then quit claim back. There is the risk of the due on sale clause but it seems like no one is really concerned about that. If your LLC is a single member and you quit claim to yourself, you don't have to pay capital gains as you didn't sell it. People move property into llc and out of llc all the time, I don't think people are paying capital gains on that.

Or talk to a commercial bank and get a commercial loan once the prorperty has been seasoned.  There seems to be no shortage of lenders in the world right now.

We don't buy rentals with pools just from a liability perspective.  Do point adding more risk.  Also there is a cost of maintaining the pool (pump filter plaster).  You may get a premium in rent but then again you may not.

However if I were to buy a property with a pool, I'd require professional upkeep, either I would hire it out and charge the tenant or ask the tenant for proof that it is being done.  

From my experience its all based on your tenant and your relationship with your tenant.  I would only show a  property I own if I know that the property is in decent condition and my relationship with the tenant is good.  If I'm trying to evict someone I wouldn't try to show the property until they are gone. 

There have been times when I've asked the tenant to do an open house for me for 1 hour.  It really just depends on your circumstance. 

Legally you are allowed to show with the proper notice per your lease.

@George Pauley We think about what you are doing all the time with our portfolio. It sounds like you just want cashflow to live. Being private money lender or note buyer would allow for that. I think if you are switching from slightly leveraged property to even more leveraged properties why don't you buy a NNN commerical property instead of 10 rent homes in the midwest. I feel like with more rent houses, you will have more issues. As you say today you are negative cash flow over the course of time, why would the situation change when you have 10 instead of 3?

I would consider looking into 1031 exchange into a NNN asset, then it's truly mailbox money. There was a guy in Phoenix who was big on buying USPS post offices, I looked into it for a bit but decided that it wasn't for us.

Good luck.

@Nadine Delille I agree with @Sam Shueh, I would say a large majority of people with a realtor's license are not realtors full time.  Getting the license will first help educate you on real estate, second allow a mechanism for you to make money from real estate.  Even if you just buy your own house, the commissions that you would save would more than justify the cost of getting the license.  

Lastly if you read between the lines on all the feed back.  1)real estate is hard 2)everyone has a hard time with it 3)lots of people are in your position.  Why don't you figure out a way to provide value to those people as a realtor.  You yourself struggled to find a realtor that knows anything about a certain niche, that to me is just an opportunity for you to step and be that expert.