All Forum Posts by: Mike Dorneman

@Sochima Eze Yes. It can get expensive especially if this is the primary heat source for the unit. However, won’t your tenants be paying for this own heating expenses???

@Teresa Oss To me this is one of the most stressful parts of our product life cycle. I try to communicate openly with the tenant and keep it very reapectful / professional. I’d offer to give them their security deposit back on moveout day after inspection of all goes well. Fortunately I’ve never had to do this, but you could also do a “keys for cash”. Basically leveling with hem and offering additional cash at moveout as long as they do not trash the place. You position it as a little something to help with thier next place. I hope it works out for you.

@Sunjeeve Weerasinghe Yes. LLC is the way to go. Truly not much more to say, aside from also considering a rider policy (umbrella) if you feel the need to increase your coverage options.

@Brian Baker that’s the BRRRR 😁 Nearly all of my rentals are leveraged with HE lines or loans which I then use to buy the next property, then repeat. You’ll find that your local bank can and will get thesenloans done for your quickly. (Assuming you have a good Debt to Asset ratio personally and high credit score. The loans I get are all commercial, with a personal guarantee. One benefit here is a single credit pull / application. Meaning I only need to submit my personal financial statement every 6-8 months and that’s it. No additional credit pulls or applications. This is great for me because I’m averaging a property / month so going through all that paper work and hoops would be a major pain.

@Alex Johnson My initial response is No, however I guess in some instances you might consider. Personally though, I would not. If you are offering one of the best products out there, at a competitive (this does not mean lowest) price and you provide prompt and professional service as the landlord, then why why reduce price?? I get being afraid of vacany, but if you are offering a great place and meet all your obligations as the property owner / landlord, don’t compromise. I rent properties in a small town (currently 9 doors), each one was listed and now earns higher rent than any other comparable properties in the town. I make it a point to explain why our rents are slightly higher to all potential tenants. I explain how we operate different from a “landlord”. Meaning, if something breaks, our contractor will be here within 24/hr, refredigertor breaks, new one deleoveres timorrow, etc... you call with a concern, we respond same business day or the very next. I’ve found tenants have been very willing to pay a premium for a higher quality landlord experience. This also has a way of getting out trouble tenants and aligning the right tenants to my properties. Good luck

@Mark Wurtemberg Just about all banks will loan 25k min on a purchase. (Personal or commercial) I’ve used multiple for small / quick loans around the 30k range. Move found that the very local banks can usually turn these around in under 30 days.

@Kalen Mills listsource.com Very inexpensive and highly customizable lists.

@Jake Snavely if you have the cash then I’d use it. Private money / hard money can be very expensive and if your floating around 1%, chances are the deal won’t be profitable with such a small margin. Not all banks require you to season the home for 12 months, I work with a very small local bank in my community and they have no seasonality requirement. I usually order the apapraisal they day after we close on the cash purchase when the job just requires some minor cosmetic fixes. The key here is creating forced appreciation. The bank I deal with loans 80% to value, so I need to make sure I’m increasing approx 20% (ARV) after renovation value, so I can BRRR my initial cash back out for the next deal.

@Shiloh Lundahl life long lessons learned before 10 years old. It’s truly a priceless gift.

@Shanae Williams It can vary by county. Your best bet would be to contact the county tax collector and they’ll provide you with their specific details of the sale. Also know that some counties, (mine for example) use a third party vendor to facilitate the foreclosure and tax sale process. That’s usually a very good hint for investors because these companies make the process of purchasing the property very simple for us.