All Forum Posts by: Mike Hanneman

I too, don't understand why you think he has to pay you to leave? Am I missing something? Please eloborate.

What is the market like in your area? Why did you want to flip this in the first place vs hold it?

After you answer those questions then do the math, After closing you should get around $40K in profit correct? How long will it take you to recoup that in a rental? Not to mention you will have to refi it to something fixed so there's more cost there.

Also since your plan was to flip from the beginning did you put in finishes that one normally wouldn't in a rental? Wood floors, granite, etc.... These will wear quicker and not be as maintenece friendly.

Lots of stuff to think about here. I like to get buy and holds but will flip when the oppertunity presents itself, but I usually know this before I buy. It is nice to have multiple exit strategies though.

Don't know about Wisconsin, but in CO and ID you have to sign the quit claim too. It's that way for the reason stated above.

Leveraging is using other people's money to buy...

For instance you have $100,000 to buy realestate. You can buy 1 home for $100,000 free and clear and you have one home. Are you can use leveraging to buy, same $100,000, but now use 25% for down payment, ($25,000) and get a mortgage for the remaining $75000. You can now buy 4 homes with the same $100,000.

Used those numbers for ease of math, but you get the jest.

@Charles Kao Hopefully those repairs are actually from the pet and your post isn't what it seems. You post seems that you are "stealing" your tenants security deposit. I understand the tenants need to pay for the damage they caused but they don't need to be buying upgrades for your rental.

I think it depends on your area, in the middle of a city there will be less dog owners per se, but as you get away from the big cities I think more people have pets then don't. I would say at least 60% of people/renters have pets of some sort and that number is going up.

@Jimmy Watson I have never paid an appraiser up front. I have always paid after they have been to the property and this has been the norm for the multiple areas I have invested in. Did you ask why it was $725? Was this a multi? If this was a SFH this amount is way out of line.

What did the owner say when you pointed this out to him? I would ask what they are going to do to make this right, for your lost rent. At minimum wave your new tenant fees they charge, ( get you a new tenant free of charge). You need to come down pretty harsh on these guys. Ask them if stuff like this happens alot with this business. Depending on the answer to the questions that you ask them, you might need to fire them.

You need to stress the low deposit and the lost rent by letting a tenant out of a lease early.

As for trying to charge the PM for this, that you'll have to ask an attorney about and could cost you more then you'll get out of them.

Just start bringing up the idea, or planting the seed. Ask her if she has ever thought about selling. Or better yet see if she'll do an owner carry and then she still gets the monthly income without having to be a landlord. If you don't make payments she gets the place back.

I wouldn't bring up how the place is a dump, or at least not until you are negoiating price.

I also would'nt say you want to buy because she is raising rent, bring up you are a family and this would get you on the right track. Be honest, polite and talk to her like you would to someone you are wanting a favor from, because that is what she'd be doing for you. She is making money off you so why should she sell? You need to convince her without making her mad or uneasy.

My appraiser told me that he uses comps on the same number of units first, i.e. duplexes to duplexes, triplex to triplex, etc... If there aren't enough of them in the area he expands the area a little bit. He said it gets complicated if there aren't a lot to choose from and didn't elaborate after that.

You are close to closing, it sounds like you are trying to convince yourself you made the right choice with this property. Are you going to cash flow?