All Forum Posts by: Luka Milicevic

The only thing I look for on a BRRRR is to get my money back. I'm not interested in getting any extra cash out on top of what I put in.

I used to do this back in the day when I was getting 4% rates, but no longer do it because it makes less sense to me. 

Only way that I would take out extra fund on top of what I put in is if I can take out enough to buy another property as a down payment. 

This is just what I do personally. 

On a side note, good deal you have on your hands here. Well done!

This is basically a daily occurrence when it comes to contractors

They work for a bit then disappear. They take your money and then don't pay the subs. 

If they are licensed you can try go after their bond. This process will very much depend on your state. 

You may very well have a lawsuit on your hands, which will be very costly and be difficult to enforce too. I have a friend right now where the sheriffs dept can't issue a warrant to the contractor because they can't find him. Since it's a civil issue, they don't really pursue them very hard.

I always try to pay a contractor to go away. I'll cover materials and labor and just ask them to now show up again. I haven't had issues doing this in the past. 

I have a pet policy that outlines what pets are allowed and not allowed. I will name the exact pet, their breed and their name. It goes on to say any other pet must be approved by me, the landlord.

If I went by a property and saw a pitbull or pitbull mix, I will issue a correct or quit notice the same day. I don't care what PETA or any other anecdotal experience anyone has had. Pitbulls are aggressive and very dangerous breeds. No, it's not "the owners"...it's the dog. 

My sister in law was attacked by 2 pitbulls. My wife was attacked by one and tore her clothes apart. Our injury lawyer said 100% of his cases are pitbull/pitbull mix dogs. He even won a lawsuit against the state where 2 pitbulls killed a woman. They are the number one named breed in injury lawsuits.

Check your insurance policy too. Your insurance probably names several breeds that it deems as aggressive. 

In the case of your friend, it's a he said/she said issue since there is nothing in the lease...it can get messy. 

As advice going forward for you as a landlord. Make sure to have a clear pet policy and enforce your lease. 

What type of GC are you looking for and what type of work are you looking to get done? 

@Leo Singh I'm not looking to JV on wholesaling deals, but I would very much be interested in being on your list for potential deals you come by.

@James May

Can you elaborate on why you're having a hard time pulling the trigger? What is it exactly that's holding you back at the moment? 

@Natsona Cole

You're not putting a full on kitchen in the basement right? Just a kitchenette? 

Asking because if you are, make sure you check fire code as they will definitely have something to say about that. 

@Ethan Fowler

Not every financial decision HAS to make financial sense.

What makes more financial sense is to get a trailer and live in that while you save. Do you care to live in a trailer with your fiance? Even better....a tent!

My wife didn't want to live in a duplex when we got married, so we didn't. She didn't want to rent out the bonus room either. Entirely not on board with the house hacking thing.

We did do a live in flip which worked out really well and she was fully supportive of any and all deals we did, but just did not want to do the house hacking thing.

Weigh your personal life vs your financial goals and decide what works best. 

@Elie Merisier

I'm not sure when this book was written, but there was a thread that was trending a week or so ago that was discussing "is the 1% rule dead" Most folks said yes in their markets. 

There are many markets in the midwest where you can still get the 1% rule. In my market it's nearly impossible, and I believe that's the case for most markets across the country especially in larger cities.

The 1% rule is just a basic guildline to very quickly and roughly analyzing a deal. It's not the be all end all. There are so many other factors you have to evaluate. 

The worst deal I ever did in my career had the highest rent to value ratio I have ever purchased. 

I have bought deals that at the time were at about the 0.6 rule. Today they are renting for 1.5% rent to value from where I bought them. 

The best rental I have ever purchased was at 0.73 rent to value. 

So just keep that in mind as you are analyzing deals. 

I'm sorry to hear this happen to you. 

I would most definitely file a police report as stealing is very much....criminal. The police should pursue these people for stealing. Completely separately from anything else they should get involved.

I'm curious how airbnb is going to handle this because my experience with their customer service has been absolutely terrible. 

Please keep us updated.