All Forum Posts by: Mike Hanneman

This is in Spokane, WA. It's a "C" rental, a "D" is way worse!! 

Well all leases are month to month. So that's nice because I can get rid of anyone who I didn't approve of. This property also fits my business plan, because I want to help clean up neighbor hoods while I'm investing. The rest of the street is pretty quiet minus this one property.

I have never been the type to shy away from confrontation, plus I think that by removing one tenant in particular, can solve a lot of problems.

I think I'm going to come in with a pretty low ball offer and see where this one goes.

Today I went to check out a potential property. Cash flow was going to be around $1100 -$1200. Property was an 8 unit. In the 40 min. that I was there with my agent we witnessed a drug deal going down in the property. A nuisance complaint about a barking dog that turned into a heated argument and then a fist fight. All this with the tenents who have leases in place.

This would have been my first property. So I'm glad I got to see this first hand just to know what problems are out there.

Is it crazy for me to still think about this property if I can get the purchase price low enough?

I hope you are taking this out of the deposit!?!?

How would anyone else handle this?

Those cracks look like settling cracks, not a big deal just repair the drywall. As for the fire though was there any water damage? That would concern me more.

I think you need to refi your student loans to a better rate. Way too high ffor someone with good credit. Student loan debt would be better debt to have as you can at least deduct the interest. Don't let student loan debt be what stops/delays you from getting into REI. The sooner you get into REI the better.

Paint!!!!   A color change alone would make a huge difference. Plus it would be the cheapest and easiest way too.

Then some low maintainence land scaping.

Another rookie question coming up; what is debt coverage ratio?

I know this is subjective to a multitude of different things, but is there a number that you experienced investors look for monthly cash flow? 4unit -$300, 8 unit- $500, etc...

I have a couple properties in mind but I'm not sure if cash flow is good enough/ worth the effort it would take to manage. Moreover, I'm trying to make sure it's a good deal for me.

If it's too much effort politely tell him thanks but no thanks and get a regular tenant.