All Forum Posts by: Gerald K.

Sometimes the wood is pretty pitted and ugly, so the vinyl works nicely at hiding a lot of imperfections without too much extra filling, sanding, etc.

@Kelsy Soderlund have you checked into any hard money lenders yet. Here's some info Brandon Turner did on his Blog:

http://realestateinyourtwenties.com/blog/hard-money-lenders-loan-sharks-of-the-real-estate-industry/

Alternatives you might try would be private lenders - friends, relatives, real estate agents, contractors, etc. We've used conventional financing so far on our deals, but you're correct - if the place is in really bad shape, that route may not won't work, although we've been OK so far. There's also peer to peer lending. Some investors borrow from retirement accounts or use home equity lines of credit (HELOC). I'm not an expert on all the different financing techniques, but you can probably find lots of info searching BP. If you can't find info with a search on BP, you could post the question in the appropriate forum and find a lot of help.

@Dawn Anastasi that's a great idea. The other solutions available out there behave in the same way - water drains forward so hopefully you can see it. Of course, vinyl or tile floor in the kitchen would be better than wood/laminate as far as water is concerned.

@Eric Belgau Welcome to BP. Nice to see another Washingtonian join the community. Check out the learn tab up top. Lots of good info there. I think you'll find a few BP participants in Olympia, WA and surrounding areas. See you around the forums.

We've used the vinyl peel and stick then caulked any seams. There are other solutions out there but I think vinyl is the cheapest way. Have your tenants periodically check for leaks and inspect your properties at least twice a year. You could also install water detector alarms to catch problems earlier.

One other thing - seems like some of the northern areas with harsh weather extremes must have to deal with extra maintenace issues. Heating and cooling equipment probably gets more use, maybe more maintenance, right? And maybe roofs don't last as long? Here in Western WA, we don't need air conditioning and our winters are mild. Roofs can last 30 years. Trying to consider what areas and things might have higher maintenance costs. Are there other considerations?

Are these areas with low prices but high rents really old houses? I suppose that would be OK if they were kept in good condition. Are newer houses in those areas also cheap? Columbia and Greenville are not that rural are they? Do the property prices jump up around the coast such as Charleston. This is an interesting topic so trying to make some sense out of it. Seems like WA state, California, etc, are very expensive unless you go way out into a rural area. Maybe the best thing would be a mix of properties like these along with ones that are more likely to appreciate. Seems like if you're stuck working in an expensive state, other than turn key, it would be pretty difficult to own properties out of state, right? If not, how would you go about it?

To make it a deterrent, make the first late fee significant - at least $40 or so, then $10 each day thereafter rent remains unpaid. You want to make it a deterrent, but not punishment. Some landlord's count on the late fees as extra income but I prefer the tenants pay in full and on time. If you start too low with late fees, they don't care since it's not going to add up to much for a while. If it's a tenant that's tight, it might be time they find a more affordable place. The late fee should be for those that just keep forgetting or put rent on hold as a lower priority. It should be the top priority and hopefully the late fee will do that.

Hi Kelsy

You mentioned you're considering using hard money for 18 months and refinancing the property conventionally to pay off the hard money loan."

Is this an all cash deal? Using a hard money loan for 18 months might not be the best choice. Flippers sometimes use them for a short time, like 3 or 4 months. With those types of loans you have to pay upfront fees and interest rates can be pretty high. It all depends on the deal, but something to think about.

Welcome to BP. There's quite a few of us from the Pacific NW. Check out the Learn tab up top for lots of good info. Wish I was raised on a diet of Rich Dad, Poor Dad, but it wasn't out back then. Not sure I would have listened at that age, but I sure would have done things differently if I had. See you around the forums.