All Forum Posts by: Mike Dymski

TD Bank is a portfolio lender in CFL.  Their investor loan terms are on their web site.  See below for how to use it.

https://www.biggerpockets.com/forums/49/topics/305204-portfolio-lender-tool-on-the-internet

For those who have hired PMs or had to train their own PM, please talk me off the ledge (or push me over)...  I just found out yesterday that 3 of 25 units have not paid April rent yet (and I found out on my own).  My property statement for this complex comes at month-end rather than at the beginning of the month like my other properties because the leases on this property have rent due dates throughout the month (carryover from the prior owners...PM is fixing that).  The 3 delinquent units are due on the 1st of the month and I'm not happy that I am finding out now that they are a month past due (and only when I reviewed the statement and brought it up).  She took over management of this property in mid February and I've had other challenges with her, particularly on turns.  She is now using flooring, painting and maintenance contractors that I found for her because her contractors were too expensive.  I like her personally, she was great with tenants on due diligence walk-thru's and she has been pushing rents up; so, I am torn.  Not timely dealing with past due tenants is non-negotiable for me and not having affordable contractors has been extremely problematic; so, I have to decide if I am willing to train and manage the PM tightly for a period or cut ties.  Having another transition so soon would not be ideal for the complex either.  My inclination is to manage the PM tightly every few days for another month or so and see if she is able to meet my expectations but not dealing with unpaid rent for three weeks may be grounds for termination alone.

IMO, real estate is too much work to just earn the cap rate and not take advantage of some leverage for higher returns.

I listen and occasionally call in to a satellite radio show that helps listeners with personal financial matters (paying down debt, saving for college, retirement planning, asset allocation, etc.).  The show is great but every time I call (or a someone calls) and ask a question about real estate, the hosts advise against investing in real estate unless you are a real estate professional.  They are not advising against it for their own personal financial benefit, they just don't think it is a good investment option for their listeners.  Many people don't know what they don't know...

401k loans used to purchase your primary residence amortize over 15 years, not 5.  Your plan provider can confirm whether or not it matters as a duplex.

One technique for starting investing is staying as a renter and taking advantage of primary residence financing and other benefits, just like your potential duplex here (15 year 401k loan, easy insurance, FHA loan, etc.) and then you do something similar again with property #2 (even if you don't plan to leave property #1). The first property takes an eternity to figure out...the rest, not so much. Good luck.

Pics look great.  Incidentally, what flooring did you use...looks like LVT or vinyl sheet?

This is getting particular, but new cabinet hardware would add to the contemporary look but it's hard to give advice on such a successful project.

Do you mind sharing your ROI or cap rate (excluding tax depreciation)? You may have a larger problem than losing deductions for passive activity losses (unless this is an appreciation play).

IDK, but I can tell you where to get escorts, free club passes and tickets to bad comedy shows from all the handouts we got on the strip last time we were there...

I borrowed from my 401k (along with a first and second mortgage and credit cards...beg, borrow and sweat) to help finance my first flip...no penalty.  I planned to pay the 401k loan back afterwards but kept it outstanding for a for a few projects due to the leverage it created for continued real estate investing.

You have to win though; otherwise, you have a failed investment AND lost savings.

I try to invest in properties and areas that do fine in both up and down markets.  My property values likely went down in the last recession but rents did not...actually went up a little.  The stock market tanked, my friends and colleagues took a big hit and rent checks kept coming in.