All Forum Posts by: Nick Miller

 yes cash flow would definitely be better than that

If it a risk to credit it probably is a bad idea. thanks everyone.

Based on last years tax sale numbers most of the residential properties went over market value. I know in Indiana that the owner has 1 year to redeem with a 12% prorated interest rate on the overage and during that time I could be collecting rent, marketing the property for sale or sending it to auction with a reserve greater than the overage.... I noticed some prominent names on the tax sale list and it made me wonder if the tax sale is all part of an elaborate exit strategy of these prominent investors... However, if the tax sale would blemish my credit or create an extra tax liability I wouldn't consider it.

Does anyone know if there is a credit penalty or additional tax on income from tax sale income in Indiana?

I have a few rentals that I would like to sell but I am not thrilled with the expenses associated with selling a property and the fact that my tenant retention is effected by having properties on the market.

Last fall I went to the Allen County Tax Sale and I was floored by the prices properties were going for. If I understand Indiana tax law correctly the overages go to the owner.

What would be the ramifications for letting my properties go to tax sale? i know I would need to pay the fees and interest if I did not like the price and decided to redeem them but if I could get close to market value plus retain the property and rents for one year after the sale wouldnt this be a good exit stratagy?

Does anyone know the tax ramification, credit ramification and other issues associated with this stratagy?

When buying a property I always calculate 10-15% for delinquency and vacancies. With my portfolio this is a conservative average however I have a fourplex with small one bedroom units that seems to take a long time to fill. People either love or hate these units as the bathroom and kitchen are small and the units are all a little dated but comparable to neighboring properties.

We have decided to keep the units in the as-is condition as the units are not bad they just take a little extra time to fill..

My question is when you do not want to update units but you want to cut turnover what is the best strategy? Would you lower the rents, lower tenant standards, increase the advertising budget or is there another creative trick you know of the lower turnover time?

A month and a half ago I rented out a property to a promising prospect... She had adequate income, sterling references, great job history and one small dog.

As it would turn out she also had cats, extra roommates and she is already late on her rent...

When screening tenants what are the most important things to look for?

I always look for the worst ads... bad ads normally mean lazy sellers.. Lazy sellers mean equity.

@David P. ~ For the past 11 years I have been a buy and hold investor however I have always bought with three rules to minimize risk and maximize income and liquidity.

1. I only buy homes when I believe I will have equity at closing (I can resale them on day 2 and make money)

2. I only buy homes that will make good rentals (If I am wrong or if the margin is not enough to justify #1)

3. I only buy homes that I would be willing to live in OR I only buy homes/buildings I believe I can have a sold flip where I can at lease double my investment.

I have followed these criteria for cash deals and have a slightly different model for contracts...

In my market I will typically only look at buildings where I am getting the property for 25% of the last sale price AND the building is being sold for 50% of area comps.

I don't look at many properties and make offers on 99% of the buildings I physically look at and generally win 20% of the deals I go after...

If you dont have good criteria you will waste a lot of time, energy and money chasing "deals" and if you rely on an estimated ARV to estimate in profits you will lost your shirt if the market goes South again.

@Bob T.

My favorites are

Entrepreneur on Fire

48 Days

TED radio hour by NPR

The Market Agents Radio podcast

This week in google

On Point (also NPR)

Radio Lab (NPR)

Bigger Pockets

Talk of the Nation (NPR)

I have listed to a few of the other real estate podcasts but gaining relavent information for my market has seemed to be quite the task.

I have been trying to fill my time in the car with educational/motivational podcasts. I have a few that I enjoy but am looking for some new programs to add to my list.

What podcasts would you recommend?