All Forum Posts by: Mark Burlison

Realtor.com

Thanks Jake! I would like 1 more 4 unit. I think that would give enough to do in retirement. I have 18 months till I hit 62. Would like to have something ready to purchase by the end of 2020. Most of the ones I’m seeing are more in the 370-400k range. Little rich for my blood and these deals don’t really make sense at that price! 

Yes, I was very green....first purchase. Made some mistakes that won’t happen again! But - we closed and are past the jitters. Immediately, after sale one tenant texted me they had no rent for February! Also they had no deposit at close(which I was aware of). After a discussion with them, I gave them 2 weeks and they came up with the rent WITH late penalty. Next month right on time and gave me a extra 50.00 towards there deposit! Price of my unit was 260k, rent receipts 3185.00 (all under rent) so I’m above the 1 percent rule. 75k down payment, generating 1100.00 a month income(including a 100.00 a month in laundry)16.5 per cent cash on cash return. Yes, I will eat some taxes pulling money out my 401k. My retirement plan is to generate streams of income off of rentals, annuities and my SS...totally skipping the stock market. So far I think I’m over jitters and ready to look for a fresh deal. 

Put out a policy with my tenants if you break something you pay for it. Of course a gray area....tenant claims crack in window due to weather. They are very honest,, elderly couple on SS, he does shovel some sidewalk at no charge and salt it.   ...thoughts? 

Just  purchased a 4 unit from a lady that was doing exactly that. My plan in 4-5 years is to sell my house and move into one my units and purchase a out of state retirement house.

Great question...ignore those who harshly pass judgment. I too recently purchased my first property. I took a trusted contractor that I have known for 30 years with me to look at the property. This gave me a lot of insight before the inspection. The inspection revealed only a bunch of minor issues and after a lengthy discussion...I then continued to negotiate within reason. I still saved another 5000.00 for a very poor concrete driveway replacement. Your the buyer, you have the  money....take your time, get good counsel and negotiate the best deal you can. Good luck!

Got a similar situation. Tried to play hardball at closing, but my lawyer crumbled at close. Then they gave me the “no rent” story....BUT we will have the next payment. I said AHEM... it don’t work that way! I did give them 2 extra weeks and prepared a eviction notice just in case. They did come up with the money at the end of the two weeks. Now to get them back on time for next month .....AND start working on the deposit. I really would have rather evicted them and started over. I think with patience... it will work out. Just bought the property, so for now I’m satisfied with JUST there rent. Ex-owner is moving out in a couple of months, so I’ll have a vacancy to deal with AND property taxes are just around the corner (I don’t escrow). So for now I’ll let the deposit issue rest. Fortunately this four unit cash flows well.... that’s my main concern.

I put out a mass text to my tenants and allow them to chose whatever method works for them. One mailed it, picked two up and another dropped it by my house. I will be mounting a rent box in the building this week for there convenience. As long as I get paid....whatever!

Why not look for a duplex and live in one side and rent the other half? You can get a FHA loan with only 3 per cent down. You only have to live in it for one year. You can then save for the down payment for your SFH and then rent both sides out when you find your house!

I can make a recommendation on a credit repair specialist.