All Forum Posts by: Kathryn Pierce

Anyone ever lease to an insurance company or relocation company? I always get contacted by them for each of my listings, but I've never done it. In this case they are offering 30% more in monthly rent for a 6 month term. It's appealing because I'd rather get this unit on a spring cycle than a fall cycle anyway. The additional rent is obviously icing on the cake. However, what am I missing about leasing to a company? 

Right, there are definitely some sweet perks for the owner! 

First thought, 10% seems fairly high for owner financing. 

Second, google 'mortgage calculator'. Interest compounds (on the total amount) so your payment is closer to double what you are thinking. It may still be a good deal, but just making sure you are using the right numbers.

I'd advocate for buying a BRRRR, but of course as the others mentioned, it depends on the property. I typically buy BRRRRs, but I'm currently in the middle of my first flip, with renting as a backup strategy.

The property was a great deal, but just didn't make sense as a rental. The taxes were higher than our typical rentals, the house needed a full renovation, and the neighborhood is primarily owner occupied. If we cashed out 75% of the ARV our monthly cash flow would have been very low. So we would have had to leave some money in it for it to be a decent rental. Just made more sense to sell and cash out everything and move on to the next rental purchase.

Run the numbers both ways, then decide. Good luck!

My short term tenant vacated 2 weeks early (on good terms). Which worked out well because the new long term tenants wanted extra time to move-in. 

I can do an addendum to the new tenant's lease and charge them pro-rated rent for August, but how do I handle the existing tenant's lease? Technically they have the unit until August 31st. Do I do an addendum to their lease, and provide them all of the prorated rent from the next tenant? Is it fair to keep a portion of the prorated rent for the extra paperwork I'm doing? 

Also, the short term tenant was paying a higher rate. So if I was truly prorating their August rent, I'd owe them money. 

This works out well for everyone, but I just want to make sure I'm doing this legally. Thanks!

Yes we did a full remodel. The property was a foreclosure. Previous owners were in their 90s (one passed and one moved to assisted living). It took one dumpster just to empty their possessions from the property. :( But we were glad to give the house new life and rent to a great young couple!

Appraisal came back at 219k!

Investment Info:

Single-family residence buy & hold investment in Lisle.

Purchase price: $110,000

About to cash out of a great BRRRR in Lisle, IL. Appraisal came back way higher than originally calculated!

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $240,000

2-flat in Lockport

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $125,000

One year after first BRRRR deal! About to re-sign great tenants for another year! Thanks for all the great info on the forums and podcasts!

I agree with the used minivan. Not the most stylish choice, but extremely convenient and practical.

Has your wife ever considered taking in an extra child a couple days a week for in-home daycare? Or using care.com to find a family that needs some help picking up a preschooler mid-day? (I work full time outside the home, and I know how much I value the experienced mommas who watch my kiddos during the day. I realize 3 kids is already a handful, especially during the newborn phase, but some mommas excel at this.)

She can work as much or as little as she wants, and still make more than enough to cover a monthly car payment. Who knows maybe if she runs it as a biz there might be some tax benefits for the minivan being a biz expense?

Otherwise, pick up another rental to pay the car payment.