All Forum Posts by: Thomas S.

Would I do it, possibly for the right price. Should you do it, NO.

You are not local, this makes managing properly nearly impossible and will result in going way over budget. The very fact that you are asking is a clear indication that you are not experienced enough to succeed long distance. You will lose money in my opinion.

I have no real issue with the ring door bell what I have a issue with is paranoia. Todays society is no more dangerous than it has ever been. What has changed is the wide spread instant access to information that was not available in the past. This has created a illness in society, paranoia, that is unjustified and has imprisoned our society. Children are not allowed to be children, adults live in constant fear.  

I am highly suspect of anyone suffering from paranoia. It is a mental illness that justifies behaviour through seemingly logical reasoning. It conceals irrational thinking.

One of my goals in screening is to try to identify applicants that may be suffering from some form of concealed mental illness. I do not want tennats with mental issues that will complicate my ability to manage them.

You made this group of misfits up right, your pulling our collective leg. Are they circus performers or gipsies by any chance. I'll venture the pets are pit bulls and the girl friend is a "escort".

How could a single group of applicants have every known red flag imaginable.

Send them a text informing them you are changing the locks to protect the property (not knowing who has keys). Let them know if they need back in they should contact you. Bases covered.

Never with a lover, I don't even know what that is. With friends only with a legal business partnership contract/agreement in place first. I don't recommend investors get married until after they are successful and then only with a prenuptial agreement. Preferably a trophy spouse that has no interest in business.

You need to do the numbers on expenses and rent. My guess is that neither option will produce positive cash flow based on the purchase prices. I could be wrong.

Need to know market rents, do they meet 1% of purchase price guidelines.

I personally target the senior/retirement demographic for the reasons Doug states but you still need positive cash flow.

Ask to be released from the lease. Unfortunately taking the unit sight unseen places you in a position without leverage. Basically agreed to take it as is.

You could try to free up the drains yourself, heat and cool are probably within code, Try to get in the attic space and set  some rat poison.

Wait till the lease is up and move.

Properties are normally purchased one at a time (number of doors vary per property). Setting goals have little value when uncontrollable factors are at play.  There is no harm in setting a goal of 10 providing you only do it as a fun challenge.

If qualified properties or financing are not available and not controlable setting goals has little actual value.

Why Principal pay down and appreciation is not included in calculations is primarily because it does not exist as income. It only exists when accessed through sale of property or refinancing to remove. Although under access by refinance it's existence will only be proven upon sale as well. Because real estate markets fluctuate there is never any guarantee of what a property may sell for at a future date. Additionally a owners personal life events may also impact future sale price. Not maintaining a property or charging below market rents will reduce the value of a income property.

The reality is that all property income is only a guestimate. Since yesterday is impacted by tomorrow in calculating over all returns on a property actual return can only be calculated at time of sale. Any other calculation is based only on yesterdays numbers with the assumption that tomorrow will be identical. When tomorrow is not identical to yesterday it changes the numbers over the life of ownership. Calculations are only a snap shot of a moment in time of a moving entity.

Having said that investors can be very creative at manipulation of numbers to make themselves feel better. Feel free to use numbers as you choose. When a investor tells you what their cash flow or ROI is you should take it with a grain of salt if they have not sold the property.

@Account Closed

So true.

Having to evict a S8 is adding insult to injury.