All Forum Posts by: Michael Lee

Hello Olivia!  First of all, I am not an Attorney or a CPA.  You should be able to deduct all expenses on any business property.  Depreciation of a roof is deductible in the standard allowance of years the IRS gives you.  So you just add that cost to the total depreciation used or depreciate it separately.  You should be able to include your deductible to the cost.

That is what my age of 61 has determined to be your responsibility.

Good luck to you!

Hello Tia! I'm not surprised that you had a problem with the FHA. I am not surprised that FHA found a way to reject you. I would like to know why the FHA turned you down. Luckily, there are several options you have, depending if the house is privately owned or belongs to a Bank or the Government. If it is privately owned they might be convinced to do the financing. They might do that if you show all of the ways they can make more that way through the financing or spread out the income and lower their income tax liability. It is usually very negotiable.

If you cannot get owner financing. there is Private money financing which is fairly negotiated, but it is  usually a short term loan like 12 months.  There is also a Partnership with a "cash rich" person but you might have to give up some or your profit this way. There is always the Hard Money lender.  They are one of the most expensive financing and typically they tend to be short term.

Only the Bank looks as much or more on you and all the others tend to be mostly interested in the deal.

Good luck to you!

Hello and thanks for visiting this site Jathin!  Direct Mail is one of the most expensive way to market or introducing yourself and your interest.  You might hire another company or an individual give you an offer but it will be expensive and sent out every week or every month.  Email services can be much cheaper and you even hire a part-timer to do that for you and you can control the time spent on it  If it's legal there,  bandit signs could work.

One of the least expensive sales methods is  "door knocking" but it takes alot of guts.  You might "drive for dollars" looking for empty houses.  It is also to leave a flier or message that asks them to call you.  Tape that to the front door or a garage door that might be noticed.  Nieghbers might know how to find them or give you the calling information.

If you use different cards and/or a different envelope sizes might get you better contacts than the other one's.  Just make them differently.  They typically require many repairs or renovation.  Some might be houses heired to someone out of state that is very motivated towards selling.  My answer might be different if I knew where Torrance is.  Consistently is the way to go with Email or Direct Mail.  Be consistent if you choose either email or Direct Mail.

Good luck to you!

Hello and thanks for your question Jeremy1  My answer may not be liked by many but I would say not to buy a house.  They usually continue to cost you more money.  It also makes a new liability, not an asset.  It also makes you immobile.  Buy at least 14 more units either in houses or apartment complexes. that might pay all your bills.  Unoccupied units will not hurt you too much.  Locate your new investments growth is be ready to move wherever its in the right part of the real estate cycle.

Wait until you are rich to buy a house and look at it like an investment.  Do not sell your rental house unless it does not meet your goals.  Owning just one rental unit will never let you retire.  You need to own 15 to 20 to make you enough to retire and pay all of your bills.  You should save more money and do not buy anything you do not need to have.only spend big money on things that you will make more on than that costs you.

Go to any local real estate groups and events.  Where the hell is Tomball?  I've never heard of Tomball and I have lived in or by Dallas for about 61 years and I have never heard of Tomball.  Can you make more money where you work?  Network with the other attendees of local real estate clubs or events.  Make sure they are not a front for gurus.  Listen more than you talk there.

Good luck to you!

Hello and welcome to this part of the site Felicia!  Unfortunately, I must ask you why are buying a duplex as as rental unit.  The more units, the better because a vacancy would not force you to an unpleasant leave, especially with one or two units where the percentages are  different greatly on vacancy.  As you probably know that there is a difference of the down payment.  If you can afford it, I suggest a 203K loan so you can possibly start off with some equity.

If you invest in a 3 or 4 unit house where you can still get a 203K residential loan with a FHA loan through an "approved" Bank. That house has a minimal occupancy condition to live there for 12 months typically.You can either keep that loan or refinance it if you want to do it again (a 203k Loan).

There is a better chance that the paying tenants will partially or completely eliminate your rent and make the debt payment and there is a better chance that the value of that property will go up which would help out your chance to refinance. 

If apartments do not scare you (you do not need experience to do this-thats a myth).  Smaller apartment complexes usually can be owner financed which usually can shorten your closing date.  Just make sure your investment property is in a growth area and do not do anything "fancy".

Good luck to you!

Hello and welcome you to this site Chris!  My first thought was good customer service.  Respond quickly.  The next thought is the exterior/first impression that is made.  Separate storage in 1 or 2 units (if you have enough).  Useful on site amenities.  Location.  See what the other similar products in that area might be doing to get prospects. The school district's reputation. School and possibly public transaction bus stops.  Quick maintenance calls and  repairs/replacements done quickly.  Common area laundry rooms kept clean/well lit.

I hear Facebook advertising does work well with well used SEO words and if you know how to use their statics.  You will get use of Instagram just by checking a box when installing the Facebook ad.  Instagram is the fastest growing Social Media site and 2nd only to Facebook overall. Video use and pictures are becoming so critical.

Leo had some good things to say but I would not over-prepare many units that rent by the room  Test them out until you totally commit.  Furnishing Internet connection could help.  Again, just do a few to test it out.  Try to locate near a highway that gives you quicker access to businesses areas.

Good luck to you!

Hello Dillon! It's location is critical and like you said, the HOA could create a big problem like any capital replacements. If you have not done this yet is discuss with some of those neighbors on their experience have they ever been hit with an extra billing for anything. Is there enough demand there for condo's? Is the access easy to get there during all hours. What are the parking arrangements? You will get more prospects if your entry is on the first floor.

The Airbnb is too risky for me. If you look at any SFH's, the more units, the better. The more units, the less the pain when you get a dis-occupancy, especially an unplanned one. Things like good amenities, school districts, first impression, any public transportation stop, parking, and security are all positive indications.

Good luck to you!

Hello Mike!  It looks like you got many replies and the couple I read were the same as I think the same way and that means my answer is "no".  In this part of the real estate cycle means you should not count on any gain with rent or appreciation.  One thing I is that I would disagree with anything that predicts the future.  There is no guarantee that prices of real estate will go down.  They might not and they might go up in pricing but It might not.  Appreciation might go down, it might go up.

You have got to look harder or smarter.  You may need to change your resource(s).  Just understand that any negative might not be cured in the  future.  I would focus on short term investing in this economy.  Something like Fix and Flip or Quick Flip at a profit is probably the best way to go right now because of the seller's market we are in.  Also make sure you are investing in a growth area.

Other than that I would tend that an appropriate way to think is long term Investments like apartments, not single family homes with just one unit unless you are planning to buy several of them right away, use "house hacking, or there is a high demand for it in your subject area to invest in that is picked.

Good luck to you!

Hello again Elaine!  Thank you for our reply.  If you have not done this already I would call an architectural office and see if they help you or have any references to give you of people that might .  You might call a experienced Building Inspection office and see if they can help you or give you any references on people they think could help you.  I would also ask some nieghbors and see if they know anything that might effect your development.

Best wishes!

I did it again. Sorry.  I would ask her what her biggest problem is and try to accommodate it through the financing terms or some other way.  If she needs a higher down payment and you cannot pay for it, just create a 2nd note to do that and pay that off in about 5 years.  She'll will get what she needs and you'll get to reduce you total payment when that goes away.  Her life expectancy will not really matter, because she can't take that money with her when she dies and any heir will be glad to get whatever.  I hope some of this helps.

Good luck to you!