All Forum Posts by: Mike Dorneman

@Jon Treskot Joe, what are you factoring in for expenses? Specifically for vacancy, repairs and capital expenditures? Also, are towe planning to pass water, sewer and garbage along to the tenant?

@Jim S. We only list our appts on Facebook. You’ll get a lot of inquires that won’t turn into anything though. However, you can streamline this by putting a system in place. Our first step is income verification. Once some inquires, we respond with a very polite request for income verification. This will weed out the people who aren’t serious quickly for you. After that, we schedule a phone screening at a specific time. If they miss the appointment, we block hem on FB and move on. Next step is a walk through at a specific time. If they miss that, we block them... This screening process has worked out great and lead to great tenants. My thought is if they can’t treat this process like a job interview or some other important priority in their life, then paying rent on time won’t be a priority for them either.

@Asher Carr Hey Asher- specially which part of the poconos are you targeting? I love here and have a great agent, however the “poconos” spends over an hour in a few directions...

@Brandon Hunsaker Tonuse either of the loan options you are referencing in nearly all cases you would need ample equity in the property and need to take out a HE loan or line. (Not to exceed 80% LTV). Your other option would be a commercial ARV loan (after renovation value) This is a loan that covers the cost of the Reno and is based on the appraised value of the property after your renovation is completed.

@Jon Treskot You’re right Joe, getting started is the hardest past! I sat on the bench and thought about it for around 3 years before doing my first deal. If you haven’t already, take sometime and go through the forums and listen to old pod cast that reference BRRRR. That’s the principle you’re eluding to with. Buying said property, renovate, rent it, refinance your cash out, and Repeat! 😁 I’m about 1 hour north of you in the Poconos. Allentown / Bethlehem Is a solId atea, however ectremly competitive and flooded with seasoned investors that are cash heavy. Be careful not to fall into a bidding war and overpay. Figure out your price point to make the deal work and stick to it. Find an agent that works with investors, this part is KEY. Then get ready to write a ton of offers! 😁

@Marty Bauer One thing you might want to consider would be your lose off the maintenance write off from a tax perspective. If reduce rent as compensation, you can’t write that off, you’ll show less cash flow (which will decrease the amount you can leverage on Thao property from a banks perspective if you wanted to purchase another property). Personally, I’d keep rent the same, and mail the tenant a check each month. It creates a double benefit for you, and doesn’t cost you any additional money.

@Curtis Thygerson Depends on how deep you’re willing to jump in initially. Will these duplex’s needs any renovations? Do they currently have tenants? Will you be keeping those tenants? What type of repairs are needed? Will you manage All or hire a property manger? I’d start with one, but finance it and keep your cash. That way once you determine if you enjoy this business, you’ll be able to jump in completely. I started with 1, enjoyed the process and about 8 additional over the past year. It’s a great game and lots of fun! Beat of luck

@Andrew Easton Short and simple Andrew. Hand written and to the point. My most successful letters have been about 3 sentences. Who I am, why I’m writing, and how to contact me. Good luck!

@Christian Marquez Depends, are you looking for passive long term income, or a quick return?? Do you want a few very quick small projects, or willing to go a bit bigger and out it all into 1 deal?

@Mindy Jensen Hi Mindy, thanks for all you do! Any chance we can get the “unanswered” field back in the forums? It’s was great to jump in there and respond to BPer’s that hadn’t received and responses. I enjoy responding, but not so much to posts that already have multiple responses already... TIA