All Forum Posts by: Luciano A.

@Daniel Kahler

I would ask myself this question. If I will be living out of the country for the next three years, how would I feel about getting emails or calls from a PM about repairs, or issues with tenants, etc? If that doesn't stress you out then rent it out and see what holds for you and your wife in three years when you get back. Otherwise, sell get the tax-free money, and put it in the bank and while you are out of the country and hear the market has crashed you can fly back and spend a week picking up a great deal if the itch to become a landlord is still there. The equity you have picked up is not chump change. Greed is what gets people in trouble. 

Being a landlord out of state is one type of stress but being out of the country to me seems a lot more stressful given what I know from all these years of investing. 

Thank you for your service

Best of Luck

@Allen L.

I would say KISS (Keep It Simple Silly). I got started reading all those books that said I need LLCs, Land Trusts, Living Trust, etc. I formed Nevada LLC, Delaware, trusts, etc. I found in the 15+ years of doing RE that a simple strategy for anyone starting out or those who still have mortgages on properties to get good insurance with umbrella policies. Forget about using LLCs especially if you have properties in your personal name. If you have millions in assets (not talking about my West Coast investors which can one house lol) then I would stop reading books and pay for a good RE CPA.

Single-member LLC really doesn't give you a lot of protection. Why do all these LLCs and out-of-state LLCs when starting out. All the filing fees, tracking and the only person it makes sense for is your accountant who will charge you more because of these web of LLCs they have to report.

Again. If you have millions in assets and or someone well known in the community I wouldn't bother with all these strategies instead, I would work on building my portfolio.

Just my 2 cents given. I don't mean any disrespect, just giving you advice I would have given my younger self when I was starting out in RE. 

Best of luck

@Michael J.

Long-time landlord and I would ask....... what type of neighborhood is this rental. If it is in an upper middle class where everyone works a typical 9-5 making $60k then these are red flags. However, if you have a property in a low-income area then this sounds like a norm, unfortunately. 

However, you haven't mentioned if her having two jobs is something new as a result of COVID? Did she recently get divorced from the father of her 4 kids? Was she a homemaker before? We underestimate single parents especially a woman with 4 kids, 2 jobs, and holding down the forte. A mommy bear can do a lot to protect her cubs. 

She pays her rent at a time when those who make more arent. If she can have the item fixed because she has a friend that is handy and does a good job and you approve the work then I don't see the issue. Some tenants are more resourceful than their landlords. Or this is a tenant who knows it's her fault and doesn't want to stress the landlord so takes responsibility.

Also, As long as you have an update on the renter's insurance you have protection if she damages the property and or moves out. 

I would keep her on a month to month and might look at getting a surety bond which can let you sleep better as they will ensure her and your property if she moves out and has damaged more than a typical security deposit. 

Best of Luck

@Auryana Faramarzi

I see you decided not to go with the deal which is a good move but something to also consider when and if you buy in Houston. If you are paying a higher price than what the current property is appraised for on tax records then be prepared to have that adjusted the following year. They will move it at or close to your purchase price thus making your property taxes higher. Make sure to take that under consideration when you are looking. Heights is a good place but in my opinion, it's best to find areas that are coming up versus established. 

Best of luck 

@Eliot Shtru

I would propose you look at this opportunity in a different way. Given you know you will be in Houston for 2-3 years don't look at it as a longer-term investment. Ask yourself how much am I paying for rent now. If I buy will I get something nicer, more convenient to work or closer to friends, etc? If you can find yourself a property that meets these criteria then look at the cost of mortgage, insurance, taxes and see how that will translate into any savings. Then calculate how much you can save by renting out the rooms. Any savings you have from renting your current place can be a bonus. 

Once it's time for you to move you can sell the property and pay no taxes since it was your primary residence. Take that money and either invest in future rental or another house hack. 

Use the opportunity to house hack as a way to save money from your monthly expenses. Or use it to move into an area you have always wanted but couldn't afford. 

In today's market things are priced high and other stuff just overpriced. Don't get into FOMO mode (Fear Of Missing Out). Being from California and seeing the 2007-08 crash, all I saw was people running to buy a place because they thought the market was going to keep going up and were afraid they would miss the train of homeownership.

Take your time and find a place you can call home and rent out rooms and enjoy the savings. 

Best of luck 

@Karl Anthony

RUN!!! This sounds like a broker who wants to take advantage of you if all he is doing is getting the property rented. Standard is one month's rent so your agent and the tenant's agent split. However, have you considered using Zillow. We have had great success and Zillow exposure is just as good as if agent listed on MLS.

Best of luck 

@Chris Lockwood

The location is great but I wouldn't buy it. If you have 20% down I would look at stuff under $160k. Also, something to consider, once you purchase the city will adjust your property taxes closer to your purchase price so take that under consideration when you crunch your numbers. 

Congrats on building your portfolio

Best of luck

@Uche O.

I own property on that street and the next street over. When you rehab these older buildings you will find a lot of issues behind the walls so make sure to have a good contractor and rehab budget. The third ward has gone through the roof. I bought mine for under $90k but that was years and years ago. Airbnb is doing well there given its location to med center, downtown, etc.

Best of luck

@Henry Peñate

I don't think getting a RE license will give you an edge. As others mentioned, you don't need a particular degree or experience to get into RE. Surround yourself with like-minded people, read and read about real estate. But more importantly, find your niche. There are many shiny objects in the RE field so find one you like and become the expert in it. 

The reason I don't suggest getting your RE license is that there are monthly fees you have to pay to the Broker for hanging your license with them. You have to be sponsored by a Broker to do real estate transactions. 

I passed my state license but decided not to go that route. If you want the 3% commission on a deal then negotiate the deal with the seller's agent directly and ask to be credited the buyer's portion towards your closing cost.

Going to meetups and chatting with others on here or FB will open up doors and you gain experience from other people's mistakes.

Best of luck

@Jobin V.

Check with the local Post Office to see if they are willing to allow you to officially list-units A and B. Sometimes the post office will have you fill a form out and have it get approved. Otherwise what we have done when that was not approved just have each tenant list as A and B unit and depending on your mail person delivering they will put it in each mailbox. 

In regards to utilities, in multi-family they use RUBS. There are companies that will do it for you for a small fee. You can google and read more about and use what you learned to do it yourself. Square footage and the number of people play a role in how to break utilities down. 

Another option which can take more of your time is to submeter the electricity and water. Upfront cost but can help in future tenants complaining about having to pay other tenants portion because they were out of town..blah blah blah.

The pricer submeters can do auto reads without you having to go there and read the meter each month.

Hope this helps

Best of luck