All Forum Posts by: Jonathan G.

@Kevin Huang

Not worth playing hardball over an inconsistency stove lighter. Sounds like you need to get a new repair guy. Either the burner is bad or the area is dirty and needs to be cleaned. Fix it yourself or buy them a new stove. for 400bucks brand new.

@Luke J Nelsen

I've put 5 of the 1-piece / dual flush Water Ridge and the 2-piece Water Ridge brand from Costco in 3 of my SFH Rentals as well an additional one in my personal home with no issues so far. The extra money for the single piece was worth it due to ease of installing and not likely to purchase any two piece units in the future (since that's where they typically leak years down the road from rusting out those bolts that connect the two pieces).

@Theresa Harris

It cost the HOA money (legal fees) to go after non-payers. Expecting others to pay for bothersome personal problems (irrespective of who is at fault) is not a good philosophy. 

@Matt M.

It will be hard for the HOA to fix without funds and although there may some personal satisfaction from doing this, it will not solve or help to solve the issue.

If there are any upcoming HOA meetings, plan to attend. Also familiarize yourself with HOA covenants and bylaws. Next, set up a formal meeting (phone / Zoom/etc) with your management companies point person. BE NICE but also have all the facts in order. Lastly, get on the HOA board as a treasurer, secretary, Vice President, etc. HOA board positions are volunteers from the community and non board members seem to think that are owed something for nothing.

@Damien Lee

When I was renting out SFH properties in Kennesaw, with HOAs, as a rough estimate, I figured I would need a total of $400 of monthly rent for every 50k spent. For example, if purchase price was 250k, would need to rent for $2,000 just to break even over the long term (when accounting for turnover, empty months, capital expenditures, maintenance/repairs and most importantly, my time. This was my break even point.

@Ryan Cleary

I would agree because I feel it likely increases property value . Would addend the lease for them to pay the cost (100%) over 1-2 years. Would also tie in deposit to cover at least first year of the extra payments just in case they break lease early. This is a win-win situation for them because even if they move out after one year, they are not obligated to pay the second year cost but you have increased your properties value. It is not likely that your renters are sophisticated enough to understand the time value of money and how much of a deal this is for them but it really is. This will directly show you just how much they want it and also defer future unreasonable request.

Also, cont to adjust rent upwards to market rate at the 1 year renewal.

I did not account for return of the $5000 so if you completely paid down the loan over 30 years and the 5k came back to you as initially invested equity, your IRR would be about 13.4% which is not a bad return over 30yrs but that's just on the 5k only and not accounting for any other aspects of the investment.

@Joe Villeneuve

@Oscar Padilla

You could add IRR to make it a bit more interesting based on the following:

Your break even point is 7.5 years (if you had not accounted for the time value of money).

IRR accounts for the time value of money. Let's now assume we are going to look at the extra cash flow pay out of 56 dollars per month in years 8-30 of the loan (672/year) which would give you about an IRR of around 6.9% return on that invested 5K over the 30 years.

Now my IRR math was a little sloppy because of some simplifications .

1. I placed the cash flow in the last half of the seventh year (56 X 8) into year 8.

2. I did not account for the time value of the money IRR) in the first 7.5 years.

3. I also calculated the payouts coming in on an annual basis(56 X 12) and not monthly.

Fuzzy math but still fun I hope!

@Kara Jordan

The big wall street players (Invitation Homes and American Homes 4 Rent) price their rentals at top market prices and if you want the HOA swim/tennis /clubhouse privileges, you have to pay that extra HOA fee for same. I would never expect a renter to actually make payments to the HOA as that is the landlord responsibility but how you ultimately collect the fee is really up to you. included in your rent or make it an extra. The Wall Street players , who are the most profitable of all , really don't care if their renters are irritated by the extra fees. They are running a business and a very profitable one at that.

Looks like the emergency spending bill passed this evening (12/20/2020) and extended the eviction moratorium until the end of January . There’s potential for an even further extension when that one expires as well