All Forum Posts by: Linda S.

@Scott F.,

It sounds like a good idea, however it doesn't benefit the landlord.    I like the idea of incentives, however it's not big enough where I think it will sway someone yes/no, and again-- you aren't gaining anything. 

What we plan on doing, is at renewal-- give them the option of $100- $200 to upgrade their house,  maybe it's adding a small fence, or painting a room, or a year of filters, at least this way we are improving the property and improving their quality of life.   You can write it all off.. whereas with yours, I believe you can only write off $25 in gifts. 

@Jim Stevenson,

First off.... $7K in student loan, give yourself a high five!   $9K in credit card, these are actually very easy and manageable numbers!! If I were in your shoes, I'd say figure out your plan of attack.     Your car is a depreciating asset, but also a necessity to living, so I'd say plan to enjoy it for a looong, looong time.  You can sell it for a cheapo, but that cheapo will likely cost you $$$, so I say stay put.  

1) Knock out the student loan  ASAP-- it's your biggest cash flow eating.  It's the smallest, but will free up an extra $274 to save.  

2) When the 0% APR ends, convert it to a loan.

3) Save for the minimum down payment needed-- and get to work!    

Have you figured out what type of property you want? I know Rockville is $$$, have you tried looking in VA? We focus on the Tri-cities, but Norfolk/Hampton Roads have a lot of opportunity under $100K! Norfolk in particular, has a lot of multi-family. Also, it's strategic to fund improvements through debt.. the way I look at it, is I'm risking my name, but our tenants will be paying them off. You have to be okay with debt, it's scary and uncomfortable (before RE, i only had a student loan, nothing else) -- but it's a business tool.

Hope this helps!

~Linda

@Drew Moyer,

Welcome to BP!   First, I'd highly recommend graduating college, and getting a good paying job.    I 100% agree with education-- READ, READ READ!   

After you have your job for a year, buy a multi-family home, the most units your salary can afford will be the best. This is the sneakiest and most strategic way to get in (wish I had!), as you only have to put down 3% and can get a FHA loan since it's owner occupied. Depending on your area, this will be anywhere from $3K-$10K, but if you are planning on being a landlord for a multi-family, just know you're responsible for the same level of maintenance as the big multimillionaires, so make sure you have at least $10K available for repairs, not to mention a lot of credit. I would highly recommend starting with buy and hold, flips require a whole new level of cash and expertise, not saying never do it, but to start out-- it's a learning experience.

The best ways to increase your credit is 1) pay on time and in full, 2) never put more than 30% of the limit on  3) Every year or so, ask for an increase--- it amazes me how people don't!   You don't want to overdue it, since it's a hard inquiry, but increase increase increase!   It helps your utilization ratio.     

Lastly, so many people don't talk about it, but the power of doing things yourself is HUGE! Now you're in college-- take trade classes!   Learn electrical, learn plumbing, the basics!   When you start out, nothing is below you.  Bad contractors can be REAL A**holes, and they will eat you alive with costs if you don't know what they are talking about.    They are the real sharks to newbies.  So many people think real estate is about fancy investors.. IMO, it's actually not glamorous at all in the beginning, half the time it's messy, really, really long hours and crossing your fingers all $$ will work itself out.   

Good luck, and seriously-- multifamily house hack is the best option! 

Congratulations on your property, and getting it rented!   My advice for the next deal, is have your team ready-- contractors you can trust!   Make sure you have a HVAC/plumber/electrician/ etc ready to go, because interviewing when you're doing the work wastes time and energy.    Trust is a big word, when you're talking big renovations and bigger costs $$$.    

Also, one thing we did for our rentals (long term buy/hold in lower income areas), is other than the kitchen, we paint everything white.  

Good luck!

@James Denon,

I must say, it looks very tempting!  If you are at a point, where you can pay everyone, and never have to go there yourself,  then logic should override emotion IMO.     If you can hire a PM to do everything, and you just collect rent checks, then why not?    My mentor buys properties like this, and he just goes off the section  8 check list of what needs to be fixed, does the minimum fixing required and rents them out.   I don't agree, but just saying--it can be done, but it does take cold and thick skin.   The quality of your product will reflect the quality of your renter.  

If you don't have all the $$, I would run for the hills.  It's also kind of a moral/ethical question-- why would you put someone in a house you know is unsafe, especially if you think of kids?  When people don't have anything to lose, you're guaranteed problems, and you gotta know how quickly they'll run to the news station and you'll be publicized as a slumlord.   Personally, if the whole area is bad.. you're looking at a bigger problem than 1 building, or 1 block,  if the jobs and growth are there, it'll only go down hill.   

Lastly,  if you buy.. definitely agree with @Jay Hinrichs, go ahead and bust in, bring the tools and board it back up when you leave. ...  Just be wary, if there was any meth in this place, you have a lot bigger problems! 

@Antione D.,

Investors are looking for a deal, if they wanted the house on the MLS they would have taken it from you. They have what you don't have-- experience. If you're starting out, I wouldn't try going against the major league players. Why don't you start with a buy and hold and get your feet wet? So many people want the get rich quick deal, but real estate is a slow, strategic game from my experience.

@Dee Dee Daer,

I believe it all depends on state laws, but as long as you give 24-hour notice, you should be able to enter your property. Sneaking into someone's house sounds sketchy, and I'm sure it's illegal.  How about the landlord asks to drop by to check air filters, or something that at sounds like a legitimate concern?

"Can the land lord scream outside to passerby people.. "--how insulting and unprofessional, this landlord sounds like a bratty kid!     I'm sorry, but 2 bags of trash in the kitchen, and kids scribbling on the walls seems like a 1/10 on the problem board (assuming they plan on taking the trash out soon and it isn't causing bugs).    This landlord seems incredibly unprofessional, you can't demand $100 for this, how about they start with a $3 magic scrubber to get it out?     They rent to people w/  kids-- kids mess things up, it's part of the game, that's why there's a security deposit.     Unless it's in the lease they can't have 2 bags of trash in the house IMO this landlord has no case, and needs to hire a PM ASAP. 

You take out a lot of loans, or partner with someone who does have money.     Real estate isn't for everyone,  you either need to have the ability to do it all yourself, or have the money to pay someone who can.  

@Nataniel A.,

Low Income investing or buying in the "rougher areas" isn't for everyone.    There's a lot of money to be made, but honestly a lot of the wealthy people are scared-- scared to just go there thinking they'll get shot or robbed.  It's different from the life you live, and the expectations are different-- that doesn't mean it's bad.. It takes a special kind of person to do it, just know what you're getting into.   You have to be smart and do extra stuff to avoid theft, and do extra measures for security like more lights.  

 If you can handle the heat, get in the kitchen! 

How badly do you want it?   Are others looking at it?   If you really want it, and think it's correctly priced,   I'd go straight in with a good offer.   It it's just one on the list, and nothing special but it'd be nice to have, I'd low ball then.     Just figure out how badly you want it.