All Forum Posts by: Mike Hanneman

Installing submeters is the ideal way to lower expenses by passing the bills on to the tenants, however the expense of the submeters is a big one. Depending on how the utilities are laid out in the units could make this expense go up even higher. In order to install submeters you have to have licensed tradesmen install them most times and the meters themselves can be expesive. If you can cover the costs however you are gaining more value for the property for sure.

How much for utilities? Most 4 - units are shared water and that can run up your numbers. Is the water seperatley metered?

Why would the seller let this deal fall through for $4000? Did you already get the seller to come down a lot? Then at the same time why would you let this deal fall through for $4000 if it's that good of a deal? If you are that sure about your numbers and the deal still makes sense after $4000 then you should still go for it.

Read!!!! Find the blog about 22 books about real estate and start there.

Make sure you know how to analyze a property wether you are flipping or buy and hold.

If you have spoken to them and especially if you have them on camera give them the bill to fix it with the cure or quit notice.

Have you spoke to them about this yet? If you have then I agree with Sue,  but you have to speak to them, you have to be able to enforce the rules.

I guess it depends on the location of the property but I wouldn't pay anything over $700 a year. I have quoted policies in CO, ID, and WA and have never been over that with really good coverage.

Call multiple places try to use agents that have a lot of carries that they deal with so they can shop your policy.

As long as they are legit and reputable it dosn't matter where you find one. I would first however, attend some REI meetings in your area and then start asking other investors close to you about any private lenders they use so you reduce your risk. Ask your agent, if you have one or collegues, maybe they know of one.

You NEED to refi either to just lock in these low rates and lower payments or to cash out refi to buy another property. Either way you plan on keeping this property for the foreseeable future so why are you paying more then you have to!! Shop around, try a smaller bank/credit union in your area and go from there. 

I agree for you to buy a multi fam and live in one unit rent out the rest. Very good strategy to accumulate properties while having your rent paid.

I also agree with Jerry, use your VA loan as it will be the best financing terms and it's buying with little to no money down (what every RE investor is looking for).

When trying to sell a rental property think how you would want to buy it!?!  There are mainly two ways to think about it. There are going to be turn key investors that want a property that cash flows from day one with little effort form them, then there are the investors that want to force aprreciate the propty by fixing it up raising rents etc... Both ways the property needs to have a realistic selling price which most do not. For the fix-it investor they are going to want to see a seeling price that is low enough for them to make money after the repairs.

Either way the selling/purchasing price needs to be in line with market and at a price where the numbers will work for the investors. Most people selling are trying to get top dollar which is understood but not realistic with investors buying. Investors "tend" to be smarter about purchasing properties and won't ( or shouldn't) overpay for the property.