All Forum Posts by: Mary Jay

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Mary Jay has started 258 posts and replied 1265 times.

Thank you all! You are all very knowledgeable!!! I am super happy there is this website where smart people like you guys can help us!!!

0 Votes

Hi guys,

I am not sure what happened to the rental market. All I am getting are people with bad credit. One newly married couple : she had 635 credit, he had a few evictions. The other couple: the guy had an eviction, both have bad credit: 500 and 400.

The last couple said they guys mom had health issues and he quit his job to help her...

Another girl said she has a good credit but did not show up for the showing.

Another tenant, in another state, is breaking the lease and moving out...

I feel like the markets are oversaturated with rentals.... Its used to be 20 showings per rental, now its like 2 showings per rental... And I dont even rent that high.

What is your experience with people with bad credit?

2 Votes

Quote from @Nathan Gesner:

Unfortunately, I don't have any experience with these companies. The nearest Lowe's and Home Depot are two hours away.

Thank you sir!

0 Votes

hi guys,

Which one provides the best services? Home Depot-Lowes-Sears outlet, etc?

I can tell for sure not Home Depot. But wanted to hear your opinions.

Just bought a washer from the Home Depot, they came and said the pipe is rusted, so they would not install the washer, even though I paid them for the installation. I called the plumber and he came said there is no problem with the pipe, 300$ for the installation of the washer...

Home warranty through Home Depot- came three times and said the rental was not clean and refused to fixed the stove...

Not gonna do any business with Home Depot ever again!

HAve you had any good experience with any company?

0 Votes

Quote from @Joe Villeneuve:

Quote from @Mary Jay:

Quote from @Joe Villeneuve:

Quote from @Mary Jay:

Quote from @Joe Villeneuve:

Quote from @Mary Jay:

Quote from @Joe Villeneuve:

Quote from @Mary Jay:

Quote from @Joe Villeneuve:

Quote from @Mary Jay:

Quote from @Joe Villeneuve:

Never,...ever.

I see people who invest in linear markets say "Never"... At the same time, the rents in the linear markets dont grow very well, plus the price of the RE is linear... I am not sure how people make money with all breaks/fixing/non paying tenants... Untill the property is paid off... Of course if a person can fix everything himself, then it probably is easier

Then don't invest in linear markets.

You always talk about strategies, and they are all smart... but Ive never heard you give an example of your deal. May be I just overlooked...Can you please give an example of your buy and hold (like how much did you buy for, what is your cash flow on it when you bought it, when did you buy it, at what interest, what are the rents on it back then and now, what is your cashflow now on it)...

Sort of like what Bill did earlier, he gave us an example of his scenario...

I own in linear, hybrid and cyclical markets... I can tell they all are very different. I personally prefer cyclical or hybrids because with linear there is not much of cashflow and not much of appreciation...But would be interesting to hear your deal

Over the many years I've been on BP I have written many, many strategy examples. What specifically are you looking for?

If you could provide an example of a recent deal you made with a positive cash flow that would be great. Something like Bill Brand does... Something like: bought in 2024 for such price, interest is such and such, rent is such and such... If you provide numbers for a recent deal (2024 or the end of 2023) that would be helpful! Thank you

I've given many, many examples of deals (there's an echo in here) over the years. Every example I give to describe a strategy or REI principle, I use numbers to show how and why,...and they all come from real deals.
However, I'll give you an example of one we just got (I have a partner) in a western suburb of Detroit. Like I said, I have a partner, so I'm not going to give you an exact location in order to protect my partner. So please don't ask:
Buy using seller financing - $120k
DP (10%) - $12k
SF - $108k
Terms (7%/25 yrs) Pmt - $763/m
T/I - $325/m
Rent $1600/m
CF - $512/m
That means we sill recover our cost in less than 2 years.
Bought about $15k under Comps because seller had tenant in and wouldn't CF enough at full price using traditional financing. With interest added to the sale price, seller will be making almost $230k, and will have about the same CF they had when they owned it...without having to deal with the tenants. They have a lien on the property if we ever defaulted.

Thank you!

Looks like still good cashflow is available, even with these interest rates...

How much do you calculate for capex and tenant turnover?

I don't, because all that does is give you a false sense of security. You would have to retain so much a month that it would kill every deal. It has to be covered when it happens though. What I do is have a general (good size) line of credit, not connected to any property. This is a business line so I can use it on any property when needed. Then, I just cover the monthly cost with the CF from that property. The property will always stay CF positive,...just not as high during the LOC payback period.
The reason why I don't pull it out of a property equity, is if I sold that property, I have to pay off the LOC,...and I lose it altogether.

Thank you! As far as your expenses when a tenant moves out, how much would u say you spend? Most of my tenants were clean and after they moved out I had to only pay a cleaning lady $400 to clean. That is after 18 years of investing in RE.. But the last couple of tenants (in 2023), after they moved out I had to change the carpets, paint, there were dirty hands imprints on the walls, it was a disaster! I spent 10k and 15 k on those 2 properties to make them rentable again...

Depends on the tenant (like the examples you gave) and how long they've been in place. The longer they're there, the more expensive the move out expenses are, but the longer that number is split over the years they're in place.

One Phoenix landlord who has been in the business forever, said that a property never really cash flows until its paid off. I kind of agree with her. I mean, it may cash flow 100$-200 per month of pure cashflow. But its seldom that we get 1K cashflow per month... Those 100-200$ of cashflow wont make a big difference, right? So I feel like the more properties I have the more stuff breaks the more I have to come up from my own pocket..

0 Votes

Quote from @Joe Villeneuve:

Quote from @Mary Jay:

Quote from @Joe Villeneuve:

Quote from @Mary Jay:

Quote from @Joe Villeneuve:

Quote from @Mary Jay:

Quote from @Joe Villeneuve:

Quote from @Mary Jay:

Quote from @Joe Villeneuve:

Never,...ever.

I see people who invest in linear markets say "Never"... At the same time, the rents in the linear markets dont grow very well, plus the price of the RE is linear... I am not sure how people make money with all breaks/fixing/non paying tenants... Untill the property is paid off... Of course if a person can fix everything himself, then it probably is easier

Then don't invest in linear markets.

You always talk about strategies, and they are all smart... but Ive never heard you give an example of your deal. May be I just overlooked...Can you please give an example of your buy and hold (like how much did you buy for, what is your cash flow on it when you bought it, when did you buy it, at what interest, what are the rents on it back then and now, what is your cashflow now on it)...

Sort of like what Bill did earlier, he gave us an example of his scenario...

I own in linear, hybrid and cyclical markets... I can tell they all are very different. I personally prefer cyclical or hybrids because with linear there is not much of cashflow and not much of appreciation...But would be interesting to hear your deal

Over the many years I've been on BP I have written many, many strategy examples. What specifically are you looking for?

If you could provide an example of a recent deal you made with a positive cash flow that would be great. Something like Bill Brand does... Something like: bought in 2024 for such price, interest is such and such, rent is such and such... If you provide numbers for a recent deal (2024 or the end of 2023) that would be helpful! Thank you

I've given many, many examples of deals (there's an echo in here) over the years. Every example I give to describe a strategy or REI principle, I use numbers to show how and why,...and they all come from real deals.
However, I'll give you an example of one we just got (I have a partner) in a western suburb of Detroit. Like I said, I have a partner, so I'm not going to give you an exact location in order to protect my partner. So please don't ask:
Buy using seller financing - $120k
DP (10%) - $12k
SF - $108k
Terms (7%/25 yrs) Pmt - $763/m
T/I - $325/m
Rent $1600/m
CF - $512/m
That means we sill recover our cost in less than 2 years.
Bought about $15k under Comps because seller had tenant in and wouldn't CF enough at full price using traditional financing. With interest added to the sale price, seller will be making almost $230k, and will have about the same CF they had when they owned it...without having to deal with the tenants. They have a lien on the property if we ever defaulted.

Thank you!

Looks like still good cashflow is available, even with these interest rates...

How much do you calculate for capex and tenant turnover?

I don't, because all that does is give you a false sense of security. You would have to retain so much a month that it would kill every deal. It has to be covered when it happens though. What I do is have a general (good size) line of credit, not connected to any property. This is a business line so I can use it on any property when needed. Then, I just cover the monthly cost with the CF from that property. The property will always stay CF positive,...just not as high during the LOC payback period.
The reason why I don't pull it out of a property equity, is if I sold that property, I have to pay off the LOC,...and I lose it altogether.

Thank you! As far as your expenses when a tenant moves out, how much would u say you spend? Most of my tenants were clean and after they moved out I had to only pay a cleaning lady $400 to clean. That is after 18 years of investing in RE.. But the last couple of tenants (in 2023), after they moved out I had to change the carpets, paint, there were dirty hands imprints on the walls, it was a disaster! I spent 10k and 15 k on those 2 properties to make them rentable again...

1 Vote

Quote from @Joe Villeneuve:

Quote from @Mary Jay:

Quote from @Joe Villeneuve:

Quote from @Mary Jay:

Quote from @Joe Villeneuve:

Quote from @Mary Jay:

Quote from @Joe Villeneuve:

Never,...ever.

I see people who invest in linear markets say "Never"... At the same time, the rents in the linear markets dont grow very well, plus the price of the RE is linear... I am not sure how people make money with all breaks/fixing/non paying tenants... Untill the property is paid off... Of course if a person can fix everything himself, then it probably is easier

Then don't invest in linear markets.

You always talk about strategies, and they are all smart... but Ive never heard you give an example of your deal. May be I just overlooked...Can you please give an example of your buy and hold (like how much did you buy for, what is your cash flow on it when you bought it, when did you buy it, at what interest, what are the rents on it back then and now, what is your cashflow now on it)...

Sort of like what Bill did earlier, he gave us an example of his scenario...

I own in linear, hybrid and cyclical markets... I can tell they all are very different. I personally prefer cyclical or hybrids because with linear there is not much of cashflow and not much of appreciation...But would be interesting to hear your deal

Over the many years I've been on BP I have written many, many strategy examples. What specifically are you looking for?

If you could provide an example of a recent deal you made with a positive cash flow that would be great. Something like Bill Brand does... Something like: bought in 2024 for such price, interest is such and such, rent is such and such... If you provide numbers for a recent deal (2024 or the end of 2023) that would be helpful! Thank you

I've given many, many examples of deals (there's an echo in here) over the years. Every example I give to describe a strategy or REI principle, I use numbers to show how and why,...and they all come from real deals.
However, I'll give you an example of one we just got (I have a partner) in a western suburb of Detroit. Like I said, I have a partner, so I'm not going to give you an exact location in order to protect my partner. So please don't ask:
Buy using seller financing - $120k
DP (10%) - $12k
SF - $108k
Terms (7%/25 yrs) Pmt - $763/m
T/I - $325/m
Rent $1600/m
CF - $512/m
That means we sill recover our cost in less than 2 years.
Bought about $15k under Comps because seller had tenant in and wouldn't CF enough at full price using traditional financing. With interest added to the sale price, seller will be making almost $230k, and will have about the same CF they had when they owned it...without having to deal with the tenants. They have a lien on the property if we ever defaulted.

Thank you!

Looks like still good cashflow is available, even with these interest rates...

How much do you calculate for capex and tenant turnover?

0 Votes

Hi guys,

sorry if I am posting in a wrong forum (There used to be local forums, somehow I cant find those anymore)...

Does anybody know, if I wanted to transfer a house into an LLC in Indiana, is there a transfer tax?

Any other tax that I will have to pay?

Thank you!

0 Votes

Some properties are in an LLC, so with these I just mention the LLC name in the trust, correct?

What do I do with properties that are not in an LLC?

Do I do a quit claim deed of the property into the trust? And then record it in the assessors office?

0 Votes

Quote from @Joe Villeneuve:

Quote from @Mary Jay:

Quote from @Joe Villeneuve:

Quote from @Mary Jay:

Quote from @Joe Villeneuve:

Never,...ever.

I see people who invest in linear markets say "Never"... At the same time, the rents in the linear markets dont grow very well, plus the price of the RE is linear... I am not sure how people make money with all breaks/fixing/non paying tenants... Untill the property is paid off... Of course if a person can fix everything himself, then it probably is easier

Then don't invest in linear markets.

You always talk about strategies, and they are all smart... but Ive never heard you give an example of your deal. May be I just overlooked...Can you please give an example of your buy and hold (like how much did you buy for, what is your cash flow on it when you bought it, when did you buy it, at what interest, what are the rents on it back then and now, what is your cashflow now on it)...

Sort of like what Bill did earlier, he gave us an example of his scenario...

I own in linear, hybrid and cyclical markets... I can tell they all are very different. I personally prefer cyclical or hybrids because with linear there is not much of cashflow and not much of appreciation...But would be interesting to hear your deal

Over the many years I've been on BP I have written many, many strategy examples. What specifically are you looking for?

If you could provide an example of a recent deal you made with a positive cash flow that would be great. Something like Bill Brand does... Something like: bought in 2024 for such price, interest is such and such, rent is such and such... If you provide numbers for a recent deal (2024 or the end of 2023) that would be helpful! Thank you

0 Votes