All Forum Posts by: Jon Reed

For our properties we have a single page cost sheet that they sign that tells them how much things will be if they damage something when they move out. It covers all common things such as burnt out light bulbs, holes in walls, holes in doors, broken appliances, carpet stains, broken fixtures, and so on.

That way the tenant knows exactly what they will be charged when they move out (before they even move in). With this method you can have all those difficult conversations up front of "why does fixing sheet rock cost $20 per sq/in?!?". 

Here are some cost breakdowns that we charge based out of Springfield MO:

• Window Blind (L/M/Wand) 60/40/8
• Toilet Seat 35
• Painting 1 room 150
• Painting 1 room ceiling 105
• Light Bulb 5
• Smoke Alarm 75
• Drywall 40 per 4 sq/in

If you don't know exactly what it will be then estimate high and then if you end up getting it done for less the ex-tenant will be happy to hear that they get more money back then they thought. 

You do not HAVE to update knob and tube if everything is working fine (according to an electrician.. not just making sure all the lights turn on and off).

As far as a 'deduction'... I am not sure what you mean by that. You may want to talk to your tax accountant and find out if it would be best for you to take it as a single expense hit for the year or add it as a capital investment to the property and depreciate it. 

Sounds like you need to get a meeting set up with a real estate attorney. I believe you are a member of the HOA so if someone is suing the HOA they are kind of indirectly suing you (but that is my 100% shot in the dark assumption).

Yep! Just start going to your local banks and talking with them. It may end up going to multiple banks before one fits with your investment strategy. Just don't give up when the first lender tells you 'no'.

I prefer local banks vs. online banks. So, go to 3-4 local banks in your area and talk to them... ask them these questions. They will be happy to help you out.

Buy a duplex with a traditional commercial loan for 20% down. That will leave you with $33k cash left.

In a few months if your numbers are working out with the first duplex go ahead and buy another with 20% down. Repeat until you end up with 3-4 duplexes that are going to cash flow like crazy.

Additions are very region specific because a new addition will cost $175-250 a sq/ft to do... so if your area homes sell for that much per sq/ft then it would be worth it. In our area, renovated homes only sell for $80-110 a sq/ft so it never makes sense to do an addition. 

Adding a 2nd bath is a great idea but try to get creative with where to add one within the current foot print because moving interior walls is much cheaper than adding onto the house.

Dang... I have heard stories of this but never someone who experienced first hand. Have you tried to appeal the request to the city? Maybe just keep it all the same and frame it as a mother-in-law sweet... or use it as an AirBNB... 

I am interested to see what some other people suggest to do.

It sounds very fishy that your lender is wanting you to refi every 6 or so months... There may be no out of pocket expense for you but he may be taking all the refi fees and rolling them into your mortgage so you don't notice it.

Also, every time you refi it will reflect on your credit score and hurt you if you are going to a different lender for a HELOC soon.

Moral of the story: Don't refi again.

The region/city/town specific information on house hacking is not nearly as important as the basics. Start with this book, it will get you to the point where you can purchase that first property.

House Hacking Book