All Forum Posts by: Kyle Soderman

@James Smith Others may want to expand on this but your first step would be to sit down with a mortgage loan officer at a bank and talk about your options. Many will refer you to local or regional banks rather than the big banks i.e. Wells Fargo, US bank...

EDIT: Refrain from applying for a mortgage pre-approval online. It would be better to meet with someone in person.

Thank you all for the fantastic input! @Jay Hinrichs @Marc Jolicoeur @Max T. @Patrick Liska @Kristen Schade @Karin U.

The main reason I bring up the point is because there is a 4-plex I am currently looking at which has Stucco siding and has been on the market for about 490 days. This home was build in 1941 (I would assume this counts as the "older Stucco" so it is probably real) and I am confused as to why it has been on the market so long. I was thinking that the Stucco siding could be part of the issue.

It is also worth mentioning that two of the units are in the basement which has been torn down to the framing and the home comes with no appliances.

I did walk the outside of the property and if I remember correctly there were no major cracks in the siding.

Any idea why this property may be sitting on the market so long? Do people not want to deal with all the work needed for the basement units? I should also mention it is reasonably priced.

Looking for your advice and expertise on Stucco siding. Anybody with experience with Stucco siding in Minnesota MN would be great. What I know (at least I think I know): I know that there are two (or more?) types of Stucco, real and synthetic. I've read that synthetic comes along with many problems. I also read that if it is real Stucco then it is very reliable. Since I am from Minnesota there are drastic temperature changes and also very wet. What I'm wondering: How long does real Stucco siding last? Is synthetic Stucco the beginning of a bad deal in a climate like MN? Can an inspector tell if it is real or synthetic? Or would one have to have a specialists check it out? Any other comments/ opinions are welcome. Thanks!

You can always have a "property precautions" form in your lease. Of course, this will not stop someone from suing you but will help with your case.

The management company I work for has this form with every lease signing. Essentially it says we are not liable if you get hurt on our property.

EDIT: This is in response to if someone slips on ice and breaks their arm.

@Mitch Messer Thank you for the response.

I am wondering how you go about transferring the utilities into your tenants name. 

I know for electricity there is a form you fill out and send to the company. Is water and heat the same?

Do you have the residents set up trash?

This all assuming tenants are paying utilities.

Thanks guys!

@Tim Dastis I am also interested in students housing. (looking at 4br SFR as well)

I have seen many people saying they want 12% return with at least $150 in cash flow per unit. (that is not per door)

What I am am looking for right now is a 12% return with at least $200 a month cash flow.

I would assume your daughter would be a freshmen in college? Some colleges require freshmen to live in the dorms their first year. Just something for you to look into.

@Colleen F. Do you believe that it could be a liability if the residents neglect to shovel the snow/ put ice melt down?

I would assume you keep a good eye on it and give them a friendly notice if they are neglecting snow removal?

@Andy Basler My thoughts exactly! Thank you.

@Andreas W. I believe most big ticket items have been recently repaired but that is something I will know more about after walking the property/ having an inspection. Also with maintenance costs, it is hard to say whether 7% would be enough or not. It is very true that students are harder on the house then traditional tenants, but that being said you do not need to keep the property in turnkey, beautiful condition for the students. Don't get me wrong I will NOT be a slumlord, I will keep up with things that NEED to be fixed such as broken window, locks not working, ANYTHING that is leaking, etc. But I will most likely not be changing carpets and painting walls after every tenant.

I like to think that I will keep the property as nice for the tenant as I would be comfortable living in. And I do live in student housing so I have a good idea as to what is appropriate.

@Phil Gearhart 

That is something I have considered, Phil. There are going to be students that are going to want to leave but as long as I have a solid lease then, as far as I know, you can make pay until the end of the lease, or they can find a sub lessor to take over their lease. Kevin, that is a good point, I would most likely require a co signer with most student renters.

I also do agree that no one is ever guaranteed to have 100% occupancy all the time.

Thank you everyone for the great responses, I love the discussion thats going on!