All Forum Posts by: Kenneth Garrett

@Anran Wang

It depends on the difference from the market rent to where they are currently at.  A $100 probably not a big deal on the other hand $500 is a bigger story.  If they like it and they can afford it probably not a big deal as well.  I do think discussing painting the unit or some other added value is a reasonable conversation.  Quality long term tenants who pay on time are the best.

Good Luck. 

@Aaron Sjostrand

Many locations have a rental licensing and or registration program.  An annual inspection and of course a fee.  Its for the landlords who don't take care of their properties (slum lords).  We should take pride in our properties but it is a business.  I always ask people who have this discussion "Would you rent from you".

Be a good landlord.

Good Luck.

@Damon Snyder

Do you have an LLC or S-Corp. You must have expenses as well to offset other things. Education, supplies, phone, office space even if at your home, books, seminars, dinner, etc.

Read the book by Mark Kohler "What your CPA isn't telling you". A small business can take many expenses and apply them.  The IRS allows it.  Mark has a number of youtube videos as well.

Check it out.

Good Luck.      

@Tom Chen

I agree with @James Wheelock I can't tell from the photo what is going on.  I have seen a lot of odd foundations over the years as a building inspector from bulged walls, caved in walls to no foundation.  Some are minor, some are more serious.  

Do not take any one else's word for "it should be alright"  Conduct your own due diligence.  I have a broker who will minimize issues sometimes and as much as I respect them I will conduct my own analysis.   

If you have a better photo or explanation message me.

Good Luck.

Just finished a rental rehab in the northwest suburbs 25-30K.  My BP fellow investors.  I will open my property to anyone who would like to see the rehab and what my strategy is on rehabbing.  Its a little different then most.   Message me if interested.  I would like to help others as I received a tremendous amount of help when I first started.   

@Gabe Ledo

Understood. I have a limit of $75,000, but in my market its hard to find deals less than that anyway. I tend to use private funding to purchase and refi when its fixed up and leased usually about 4 month process before I have all of the approvals (BRRRR Strategy). You may want to look at a different acquisition strategy.

Just bought a SFR in Genoa City, Wi for $75,000 (Private Funding). Will put in 20-25K and will appraise for 140K. It will cash flow 300+. Refi at 105K. Acquisition is the challenge. We need to beat the banks at there game.

Good Luck.

I use commercial loans all of the time. Don't worry about the 25 year amortization. They are so much easier to get approved. Its all based on the numbers. DSCR of 1.25. I use a local bank and they have been lending at 80% LTV when DSCR is over 1.5.

The rates are a little higher but $50 shouldn't stop you.  If its the difference of investing versus not go the commercial route.  Of course, your numbers need to work.  I always shoot for $300+ cash flow. The last couple have been 400+.

Good Luck.  

@Ken P.

Congrats Ken.  I like the long range plan of what the cash flow will be in the future.  $50 cash flow is really low in my book, but I do see the bigger picture. 

Great job.

@Christine Mwai

Hi Christine, the information here on BP is great, but having a local mentor is as important if not better.  You need someone local to go over deals walk projects when necessary and a one on one relationship.

The majority of investors need a little hand holding.  Even the experience ones need a sounding board so you don't run your train off the tracks.  Mentoring is awesome when you can help someone because we all remember putting that first deal together and the infamous statement "Is this a good deal". 

Good Luck.

@Edward Apostol

Sounds like its  a pretty nice area when you state it is in a gated community.  I tend to do both.  I buy new appliances for stove and refrigerator.  I have been buying refurbished washer and dryers.  It seems to work.  I would not go to Craigslist and buy them even though I understand the deal you could get. 

I have a different strategy, I buy properties that need rehab and generally buy SS appliances. This way, I refi the property to get my money out so I do not have any money stuck in so I am always concerned on ARV. The additional cost for SS is not that much of a difference. It is well worth it. This is not your typical strategy but it works for me.

Good Luck.