All Forum Posts by: Mike Hanneman

That's the best thing about real estate almost everything is negotiable!! Run your numbers and make an offer accordingly, if they say NO walk away! Don't let emotions drive your offer, that's how you can get into trouble.

Did you have to file anything with the state? I'm having a hard time grasping what to do to get my business actually established. I plan on doing a DBA just so my name isn't glaringly attached to my properties. I have already spoken to different banks for my accounts. Do I just go get my business name on business cards and a business bank account and off I go? It seems it has to be more complicated then that? I have googled "how to start/setup a business" and haven't had any luck. Any info on this would help out.

I understand the whole LLC thing, I'm just going to be leveraged highly for a bit so don't want to deal with the deed in/out of an LLC yet.

truerent.com is a pay as you go site. I haven't used it yet but have checked the website out. It offers more features because you have to pay. It looks like it's similar to buildium.com but a lot cheaper!!

I too would like to hear of anyone who has been using these sites.

You have to run the numbers and see what makes sense. Lets say you get to your 78% in 3 years. Thats $12,600 that went to nowhere that would benefit you. Mortgage insurance goes to the banks bottom line, they love mortgage insurance payers!!

 At your new rate your loan would be roughly $55 more, That's 229 payments or 19 years to equal the $12600. Are you going to be living there in 19 years to offset that difference? Mean while you refi and you will see a $250 a month ( $350 - $55 ) increase in your bank account every month thaqt you can spend however you choose, Even use this to paydown your loan faster if you wish. The loan costs I would roll into my loan so no out of pocket to you.

Also if you are wanting to buy another property, refi with cash out closing now, and you can get money for another property.

The main thing that you need to see is that $350 is going to make a banker rich not you!! Get rid of PMI as soon as possible.

You are looking at your refi loan being somewhere around $55 more a month. Getting rid of your $305 monthly payment that is going nowhere. You save around $250 a month!! Then you can take the money out of your equity and use it to go buy another property. If I was in your shoes I would refi!

3.75% is still a really good rate.

To make sure that I get this right the first time I'm trying to gather as much information as possible about offially starting a REI business. What are the steps to take? I will have an LLC but not right away. I'm also wanting to establish business credit. Is there a guide or check,list that can shed some light on things?

It will be a buy and hold to start out.

I understand that a credit score is a number that reflects past debt concerns and anything can happen in the future. Having said that when you're trying to figure out if a stranger is worthy enough of renting your, investment/property and how likely you are going to keep recieving rent for this person. I think it's pretty important having a minimum is also a good way to weed out tenants that you know you wouldn't want.

I'm curious to see others responses to this question.

A SFR that cash flows that much would be my dream in my area. I would look at what my potentially upcoming capital expentures are, i.e. a new roof soon, siding, any other big ticket stuff. If there's not to much of a worry about then I would keep it. To me $57,000 isn't that much for my profits, and it won't be that much as there will be a capital gains on it as you were using it as an investment property.

Also what is market value for a house like yours in that area? Is their offer close to that?

It's too late to worry, as long as you got the property for what you believe is a good deal is what matters. Don't let the current tenants detour you as you can always get another one. Follow some of the guidlines when dealing with a non-paying tenant if it comes down to that and move on.

You'll get a copy of the lease agreements once you are under contract. Most landlords won't give these out till then, this way they know you are serious. You can then also ask for the actuals/tax returns to see expenses. Being your first property purchase you are going to miss something, that's how you learn. Make sure to learn from it though! Also keep reading and asking questions on here.