All Forum Posts by: Chan K.

@Ann Bellamy

@Mike Hurney Cool tips, Mike. I will definitely use it with the dog and coin up, but definitely not the 24/7 thing.

@Mike Hurney Hi Mike, how can I get the 12% discount from Home Depot? :)

I agreed, the number looks pretty optimistic.

My sister owns a similar place like that

She pays:

Property tax ~ $5,500 / yearly

Home Insurance ~ $500 / yearly

Home Insurance Wind Storm (recently required) ~ $2,000 / yearly

HOA ~ $800 / yearly

I don't see water, maintenance, capital ... etc in the calculation. All and all with debt service too, the rental will definitely have a negative cash flow ---- RUN.

It is like buying any brand new house and rent it out. I am not sure if it is a good model for investor.

Hi All,

Thank you for the good tips.

I am sure we all can use it. Anything that can help us save will bring us a bit further in life.

Hi BPers,

A part of seeking out lead and close on build in equity and good positive cash flow property, I realized that the ability to shop for LOW COST APPLIANCE AND MATERIAL to dress the property is also important. This will help increase profit and reduce cost.

Where do you smart landlord usually shops (note, I use the term shop not buy)?

Here is a few place, but the cost is high .... (pre-owned or secondary hand place is welcome)

1. ebay

2. Amazon

3. Home Depot

4. Lowes

5.

6.

....

....

Please help me build the list above ... for you smart guru shoppers ...

Thanks,

-Chan-

@Mike Hurney Hi Mike, I will do a background, criminal, and reference call check.

I don't know what you meant by iphone picture ID --- Explain ... Please

There is a plan for the coin up after my basement's foundation is fixed.

I am a bit concern with the noise (coin up). I don't know how my first floor tenant would feel about it. What do you think Mike? Any thought ...

Two of my tenants have small dogs ... tenants' drama with the poop. I have to listen to it every time they complaint about each other.

My other tenant has a big dog, but she trains her dog well and no issue.

I don't want to allow dog anymore. Nothing good comes out of it as I try to keep my rent rate low to secure good long term tenant.

@Mike Hurney Thanks, Mike

I got the biggest one this previous Sat. My first showing in this upcoming Wed will have six families touring.

I filtered out like 5 families already who want washer, dryer and big dog in the unit.

-Chan-

@Chris Winterhalter

Usually Hard Money Lender fee is very expensive, it is like 1% per month.

@Eddie Starr

Check with the bank first to make sure you can refinance yourself out if you decided to take this path - Exit strategy!

@Chris Winterhalter

Will HML allow an investor to borrow 10% to structure 10/10/80 to acquire small residential multifamily?

For example, if a 3-Family is $250k, then a 20% down would be $50k.

Investor money = $25k

Money from HML = $25k @ 1%/month = $250.

Portfolio loan/lender = 80%

If the house has a positive cash flow of $1k/month. Annually, the passive income would be $12k. If the HML has a 2-year term, this is very desirable. A part time investor who has a decent day job would be able to acquire one house per year initially.

@Rachel L. It is an expensive house. Are you planning on flipping it? If you do, people don't usually flip with this number ($500k). If you are holding, it won't have any positive cash flow at all. I am pretty sure you won't be able to find any family that is going to rent 4k-5k per month for single home.

If after acquired, you are able to convert to a duplex, then it could be a deal. Given that you are just starting out, you should look for an easier deal to warm up and get your first confident going first. For example, it is like getting a turn key cash flow with small build in equity up front.

In MA, I have seen people flip single house. If you want buy and hold, try multi-family. You might be able to find $350-$500k in Dorchester/Boston MA. It might work well in your favor as you can get in with 3-5% down for owner occupied.

The deal you present, the assessment and purchase price have no correlation.

If you want to learn and crunch number, maybe start with something small first until you get comfortable like ($150k-$300k).

In any case, what are your niche and strategy?