All Forum Posts by: Mike M.

Presuming no money changed hands, the only hit I see is on your reputation. Are there other terms not yet negotiated where you could make up your oversight?

It may vary somewhat from state to state, but that's pretty much the gist of an LLC. I'd ask where the registered agent address is. In Texas, an OA isn't required but was recommended by my attorney to help bolster the appearance that the LLC is a completely separate entity from my personal life. He also recommended unanimous consent of meeting minutes at least annually.

Brandon Turner, do you adjust your "holding fee" amount based on how long you'll hold the property for? I'd like to write a "holding fee" feature into my paperwork, and I like Jon Holdman's method of converting the fee into the security deposit (simplified accounting), but security deposits in my area only seem to run 40-50% of rent, which would give me two weeks before I'm losing money on the property (assuming other demand is there). I'd be left with compelling tenant to sign the lease after two weeks or perhaps collecting a fee essentially equal to the monthly rent prorated for the amount of days the property is held, up to some reasonable limit (one month?). Perhaps holding for two weeks is all I'd ever need to do. Anyway, I'm interested to know what you veteran landlords have experienced and how you manage this. I'm afraid to not be prepared, but without property management experience, need a reality check to ensure I'm not spending valuable time on something that is just not much of an issue.

Will K, let us know how it goes. I've been keeping tabs on a duplex that has been on the MLS for the last several months. Listing is for 199,500 with 1900/month gross rents, which is probably why the bank owns it again. Like you, this would be my first property purchase, so I'm interested to see how your experience works out. Good luck!

Kyle J. has sound advice. We've used steel wool with good success because they can't/won't chew through it. When you find your roofline entry points, seal them up when your rodents are most likely to be out looking for food. Be prepared with plenty of traps to make sure you catch all the ones trapped in the attic before they die. It took our rat three days before he finally got hungry enough for the trap to put him out of his misery.

Unless it's an infestation worthy of a TV show, I wouldn't consider it a dealbreaker. I suspect many of the houses out there that are prime for making money have (or had) some rodents taking up residence at one time or another.

Brandon Turner, thanks for the welcome. Enjoyed your post about the 'B' street property. As a new investor, those properties look enticing because the extra cash flow (on paper) can make up for rookie mistakes. But, like you, I'm not interested in the hassle, so best to stay on course.

Thanks Carlos F. What sort of investing do you do over there in Dallas?

Don't think because it says GE on the door that it's a good appliance. We fell for that trap when we had our house built and went with the GE profile stainless line. Dishwasher's noisy, micro rattles, and recently received a letter that our model dishwasher can catch fire. Not impressed.

Thanks guys, and appreciate your suggestions. I am on the mailing list for our local REI group out of Tyler, but haven't been able to attend a meeting to this point. I will do some networking at those meetings and continue to refine my knowledge here from folks like you.

Hi folks,

I'm a mechanical engineer by day job. Looking to get into renting SFH and 1-4 multis for passive income and to diversify my retirement portfolio (tired of watching it be at the mercy of Wall Street). I have some secondary interest in the occassional flip for a shot of income. I live in Longview, but have been focusing on properties in the Hallsville ISD. I would like to network with other investors, especially those operating in my neck of the woods.

Switching gears a bit, this site has been great. A lot of great expertise on it, and so willingly shared. Books are great for concepts, but learning how the "rubber meets the road" from successful investors has really filled in many of my knowledge gaps as well as made me aware of things I didn't even know I wasn't aware of. Thanks much!

I would think that you could still claim the cost of the door lock plus reasonable expenditures associated with finding a new tenant and deduct those costs from the $200 deposit you verbally agreed to refund. If those costs work out to be greater than $200, then your flighty tenant is out of luck.