All Forum Posts by: Michael Kistner

@Kathryn Stevens

   Here are four regular types of construction contracts. When we have a hot job that needs to be done we'll do a hard money job (Lump Sum) and we're willing to pay the contractors a little more than normal but we have tighter deadlines.

https://www.thebalancesmb.com/common-types-of-construction-contracts-844483

   Hope this helps!

 - Mike

@Michael H.

   The Fed Chairman just spoke yesterday about how strong the economy is and no crash in sight. With that said I still always have the possibility of a crash or bubble in mind, I think if you look for solid value add plays that cash flow well you'll always be ok.

    It's only if you over leverage or take on too much risk that you should be worried.

 - Mike

@Alicia Gates

   If you're under contract, most states usually require the sellers to give you the current lease within a certain number of days. I'd ask your agent to check on that. That should answer most of your questions.

    Depending on when their lease is up you may have to keep them regardless. I've inherited tenants on multiple occasions and it has worked out more times than not.

 But I'd look over their lease before making a decision or not. Good luck!

 - Mike

@Anita Ahuja

  I think you can do both. Buy a small mf 2-4 units that needs a little work, have tenants pay most of not all your mortgage, then after time pull back out your initial investment or more. This way you don’t need roommates either. Hope this helps!

 - Mike

@Joshua Ferguson

    As a rule of thumb I like to have $5K a door in reserves. You'd be surprised at how quickly that can go in one bad month. I do know some investors that feel comfortable with having $1,500-2,500 in reserves. Starting out I'd recommend having more. Once you have a rental for a while and have made some repairs you should have a better idea of what to expect in terms of repairs. At that point you can decide if you can risk having a little less one or two months if going for that next property. Hope that helps!

 - Mike

@Michael Garfias

If you’re living in it then yes. 

@Bryan Tilos

  You can find lenders that will lock you in for 30 years. You’ll just have to call around. I wouldn’t want to go back to hard money at 10% either way though. Just my opinion. Good luck!

  - Mike

@Hillary Fox It really depends on the deal and what you’re looking for. Small multi families are nice because if one tenant moves out you still have rent coming in. SFR are nice because they’re a little more liquid. I’d also recommend at least interviewing property managers as well. You can absolutely work full time and manage your properties but with this being new it’s always nice to have a backup plan just in case your situation changes and you don’t have as much free time as originally planned. Hope this helps, good luck! - Mike

@Michael Garfias

I agree look for a 2-4 unit mf. I'd put down the least amount you can and fix it up to get appreciation. At the same time I'd be looking for more rental properties. Preferably mf. But nothing wrong with SFR either.

 Good luck!

 - Mike

@Cambria Wengert

  I think it all depends on the tenant. Section 8 or not. I’ve had the same section 8 tenant for two years and not one problem. Always pass the inspection and get the monthly check. 

   Good luck!

 - Mike