All Forum Posts by: Jerry Rode

Hello

I have a SFR that is currently marketed for rent. A good, qualified tenant (family) has turned in an application to move in February, of all months. Previous landlords have provided good references as well.

The wife / mother has babysitted in the past for friends and family members. She has stated that she intends to continue babysitting. This will not be a licensed daycare, that's for sure, but I'm concerned about the liability.

Seems like a good tenant, but is there a way I can protect myself if she keeps babysitting while renting from me?

The property is a 2 story, newer model (2006) home with no playground equipment, lead based paint, etc.

Regards,

Jerry

The primary goal is long term savings, basically just want someone else to pay for the property I own for the time being. I expected to fork out quite a bit of money to get the first one going, but from here on out the first home and any additional need to be relatively self-sustaining.

I'm 25 yrs away from retiring and would like this to be my primary retirement fund. In addition, I've got the 401k and a decent salary, but it's not providing the life style that I find enjoyable. So the secondary goal is to provide interim cash flow along the way.

At this point in time, I'm with you and can't see myself ever playing with the 30-40+ rentals it would take to replace my salary, but that is a really tempting thought to be self employed managing my own properties, and not sitting here on a Sunday afternoon realizing that Monday morning is just around the corner! :)

Jon,

You are absolutely right, given the 50% rule, my cash flow is on the lower side. The $570/mo is definitely the best case scenario and doesn't reflect the reality of vacancies, repairs, etc.

My gut tells me to sit on this for 6 months to a year and look to buy another property towards the end of next winter. Get it rehabbed and rented around the May/June timeframe, similar to this one.

Would still like to hear other's opinions if they care to be shared!

Thanks.

I've landed my first tenant, moving in at the end of the month. I thought I'd kick out the details to everyone and get some opinions on an intelligent way and when to start expanding.

Bought a single family HUD home in mid Feb for $72,000 which includes closing costs. Market value in the sub division suggests a reasonable expectation of $115k - $120k ARV.

What I have in it:
$14,400 in down payment
$4500 in rennovation, advertising, and referral fees
$1365 in mortgage costs - PITI (3 mo @ $455)
$490 in 3 months of utilities

Total expenses = roughly $20,700.

Income: The lease signed at $1025; giving a positive cash flow of $570 per month ($1025 - PITI)

Given this, it will take me a minimum of 3 yrs to break even on this puppy...all said and done, I'm pretty happy about the investment at this point.

Here's where I need some advice-- What's my next move to get the next property? I'm tapped out as far as using my own money to buy the next and leveraging the first home is the only option.

Line of credit on the home, refinance (what are the rules for waiting to refi?), sit tight and let the rental generate enough income for the next purchase?