All Forum Posts by: Jonathan Perez

Originally posted by @Thomas S.:

Strange but no one ever seems to mention that you now own a business and have a responsibility to learn your state landlord tenant regulations. This one item is by far more important that any advice any one can give a new investor. If you have already learned your state codes congratulations you are in the 1% group of knowledgeable new investors.

If you have not learned the codes governing you business get a copy, read it over study till you know it by heart, keep it with you at all times for reference and learn from experienced landlords how the codes are applied.

Do that and you will be less likely to be on her posting questions as to how to deal with tenant issues in the future.

Establish policies to deal with every possible tenant situation and you will never be at a loss as to what to do.  How to determine what tenant issue there are is simply, read through all the landlord requests for help on the forum and you will know it all. Generally there are about half a dozen basic issues. Most have the same policy procedure....give notice.

 That is GREAT advice man! I just put that on my to-do list! Appreciate that very much.

Catherine Brower who do you Bank with? And what kind of business account were you getting?

Wow thank you all for responding. Ralph R. I like the analogy with the jet, lol...you're right tho. It makes sense to let the PM manage it for awhile and I can learn from them... that's what I'll do.. Kathia L. Thanks for the points of view with the tenants.. it put me in that situation for a second and I realize I don't want them to know I own it...

I put in an offer on a duplex. And there are tenants on both sides. One of the tenants are being evicted. The other side is on a year lease....there is a property manager already in place which I may consider keeping.. IF my offer is accepted, how should I prepare to enter this. Should I introduce myself to the tenants? Should I not? Should I set up a business account for the rental income? Should I set up an LLC? What are some systems I can put in place? I was planning on house hacking it, so I'll be living in the side where the other tenant is being evicted from.

John Leavelle yeah so I was planning to house hack it, but I wanted to calculate it as if I was NOT living in it...it looks tho as if in MY situation a bigger down payment would be ideal because that mortgage is what seems to be killing the cash flow in this particular deal...

2 beds 1 bath both sides

fully and currently rented for $640

new roof, good condition inside and out

1512 sq feet

Purchase price $120k

rents ($640 a unit) total $1280

I am using FHA loan and the details are

3.5% down

3.75% interest rate

30 year fixed

So, now this is what I've got on y spreadsheet. Please let me know if I'm missing anything or if I should reevaluate.

Monthly

Rental Income - $ 1280

Expenses

Mortgage (according to calculator including taxes and insurance, $700) I'll round up - $800

ALL UTILITIES will be the tenants responsibility.

Trash included in taxes ($250/year) - $20/month

I called the tax office and this is what I got for taxes. Of course taxes vary but right now this is what we've got.

$472(occupied)/ year = $40/month

$1770 (unoccupied)/ year = $150/month

Lawn - $50

PM 10% - $130

Cap Ex 10% - $130

Net Cash Flow   -      $150/month                           <<---- Is this good? 

I'm currently living in Columbia SC, but just got hit with a potential opportunity to move to Riverside CA. Just want to hear what people that live in Riverside think about the market it there. I'm looking to get into multifamily. What's the market like currently, how has it been in the past and where does it seem to be heading? How the jobs out there? Downtowns? Would love to hear what's going on out there.

Welcome to the site Eric! I'm here in Columbia, SC. Maybe we can connect sometime.

I am looking at some pros and cons on two duplexes and just wanted to hear what you guys think. I did not want to go over a purchase price of 100k due to the mortgage payments. (I can afford a mortgage at 100k). I have just enough for a down payment, inspection and appraisal. After all is said and done, I'd have a couple hundred left to my name. So I need to be mindful of potential maintenence and repairs for the first couple months. ***Margrave rd*** Pros -asking 95k - supposed developing area -Easy downtown access -long term tenant of 10 years Cons -patches on roof -according to RAIDS, lots of crime activity in this area. - ceiling leak/stains in living room area. ***Whisper*** Pros -Right over the bridge to downtown -Significantly lower crime activity in this area -new roof, new HVAC -in a short street filled with similar if not identical duplexes. All comps Cons -Asking 129k ( a little over my ideal purchase price target) -stain in kitchen ceiling right under the bathroom ( potential plumbing issue?)

Kyle Scofield thanks for responding man, I appreciate that. So of course these numbers are at the purchase price of 110k, I should purchase at a price that obviously makes more sense. 110k would be over paying, I'm assuming right? I just ran it really quick on a purchase price of 95k and the cash flow went up from 105 to 125. I do plan on house hacking it like you did as well.