All Forum Posts by: Michael Robbins

If the appliances are really old and cost you on maintenance then I would take that into consideration as well.  Is the current flooring in bad shape?  If so, then yes I would replace.  Do you accept pets and if so, is pet rent something done in your market?  I would consider keeping the existing floor and now accepting pets, but charging pet rent.  This way, if pets ruin floors during the next lease term, then you were planning to replace the floors anyway.  

I would suggest sending them a letter ASAP (certified mail and email) letting them know what they will end up being responsible for.  The letter would include verbiage taken directly from the lease stating lease break procedures/insufficient notice...etc.  You should also include move out procedures and what they are responsible for.  

The key is reminding and warning them that the lease is to be followed and enforced.  So when they receive their move out statement then there will not be any surprises.  

In my opinion you should 100% wait and save of 20% to purchase.  I would not rent out each room.  It will take time but I like the long game.  Its more likely to be sustainable in my opinion.  I would consider @Phillip Dwyer idea of the 2-4 unit and doing the 3.5% down.  

I would pay off all debt before investing in real estate.  Especially, pay off student loans and car loans.  I am not opposed to investing and taking on debt for a real estate investment if there is a killer opportunity.  For example, if the market crashes and there are amazing deals.  But the idea is to be able to thrive when others are barely able to survive.  The only way to do this is to have no debt (with exception of your personal residence) and a lot of cash saved up. 

I make sure that I am not paying any interest payments on any credit cards, car payments, furniture, etc..... The only exception is mortgage payments.  I also do not have any unnecessary subscription services.  And finally, I save up (in money market) even amounts with any unexpected cash flow.  For example,  if I normally earn 1,000 on a check but one month earn 1,100 instead, then I save the $100.  Its the little things over time that really add up.  Seems elementary and simple but its the fundamentals that win the game.  Not having debt enables you to build wealth.  There are so many people that have all sorts of schemes but its just a facade. 

@Justin Ignacio I would suggest staying in your current home and focusing on two things:

(1) Paying down any debt (2) hoarding cash

If the market turns in LV and there is blood in the streets, so to speak, you will be ready to make an acquisition.  This is the only time I believe it is worth using debt to acquire another property when your primary home is not paid off.  

If values stay as they are right now then just work on making money and paying down your mortgage (and any other debt).  It is going to take time (faster if you earn more money) but is better than being over-leveraged and having to start from scratch over and over again.  

Any good Real estate agent or property manager will be able to pull information on vacancy rate and current rental rates for the location you are interested in.  I would make sure you take into account anticipated maintenance cost, vacancy rate, hoa fees (if any)....

Look into Inspirada, Green Valley, Lynbrook, Anthem, Seven Hills.....  It really depends on your price point.  There are also (depending on the location/development) certain floor plans the rent for higher than others.  Something to consider is buying a house/unit that needs minor improvements (ex: new interior paint).  @Account Closed What price point are you targeting?  Are you open to having a little bit of work done on the investment property?  

I like new appliances to start with.  Besides it being a great selling point, it also saves on future maintenance.  Next, you get a big bang for your buck with new and full interior paint.  

If you purchase in an HOA and decide to rent it out then make sure it is clear in lease agreement that tenants are responsible for hoa violations/fines.