All Forum Posts by: Joe M.

yeah hes been out a few years now...I know he wants to keep it long term 

Hey Experts. 

Im looking for opinions on how to view a friend's position, pros/cons and ways to think of their next step. Due to his first rental being his old primary, there is quite a bit of equity in it. It would be about the same amount to either pay off the loan on it (3.85%) or put a 20% down payment on another rental. For big picture, he is not looking to grow a huge portfolio, so slow, steady, and conservative are fine by him. I am not sure of tax implications if paid off, and I also assume he can open a HELOC to either get a down payment, or even pay for next rental in full.

So if you were in his shoes, would you pay off the mortgage OR use that money to buy rental property #2?  How would you be looking at this?

Check out Dave Ramsey x2

Until you get your personal finances together, you wont have your business finances together

yes you need more cash

or a bad idea

seems like a lot of guys say 10k per rental

Good question.  I wonder if there are any other threads dealing with this question

Hi Lisa

I do provide an itemized list of estimated repair costs at the beginning of the lease.  When you see how much simple things cost, that incentives them to fix them I would think.

But in a round about way, I try to incentivize them by treating them as good as possible.  I usually get them a gift card for christmas, as well as things I "dont have to do" like trimmed some bushes and bark.  For those occasions, I just say "wanted to say thanks for keeping the property in good shape" etc.

Building a good relationship with the tenant is key.  Its easier to remind them of keeping up with their end if you have that relationship and you arent viewed as just a money hungry landlord. 

Hey Jake

My long term tenant asked if he could a year or so into his stay.  He is pretty neat so I figured it would be ok.  I just asked a few questions like what colors, etc.  He chose some neutral colors. I said have at it.  The house looks a ton better now because of it.  I really appreciated it.

My only way I would say no is if they want some funky color (or I would tell them they have to return it to orginal color before they move).  The other way I would say no if they dont plan on resigning another lease. 

I really try to work with my tenants to make them feel home

Or literally making fun of peoples names is just rude?