All Forum Posts by: Robert M.

@Jordan Hamm, search the site for "Hardening" rental properties. There are many things you may be able to do to reduce future costs of maintenance (especially since it was YOUR HOME) 

I did not do it early enough but then realized my mistake and have done so a ssoon as I can in my rentals.

1. 1% rent is all that can currently be expected in may parts of the country because of the rise in RE prices. Not sure about Texas.

2. "Most" investor use leverage. ( as least amount down as possible, finance the rest at 30 years and manage expenses frugally.) $100,000 can finance $400,000 (including closing costs)

3. In MY opinion, now is not the best time for an inexperienced person to get into RE with cash. Many experienced investors can still make money (leveraged) and continue but you have many lessons in front of you and most lessons cost money.   

Every time we allow a brick to fall out of our countries values we all lose. 

I have not nor do I plan on doing cash for keys. 

I HAVE evicted twice and it cost thousands, but in MY value system I believe it is something I am responsible for. 

@Bil Casimir It is a bad deal Bill. You would be overpaying for the property.

@Justin Nero I would say B properties $1300 to $2000 per month

Rents lower than 1% of purchase price normally do not cash flow in B-C  area. 

Areas rarely cash flow as they are usually below 1%

D areas cash flow BECAUSE they are generally much above 15 and closer to 2%

GENERALLY!

Bill, 

It looks like you are asking if paying $165,500 for a $135,000 house is a good deal. 

I must not understand your question.

@David Andreiko Subtract 10 % maintenance and 5% cap ex to reduce your NOI. Then the decision seems to lean to selling.

My lease requires a copy before occupancy. I must be named as additional insured. In that way I am notified if policy is cancelled and that is a breach. 

I had tenant do damage much more than SD so I initiated this.($100,000 comp $300,000 liability)

I have 6 units and the one year leases states and requires the following; 

Direct deposit into my checking account so it shows in my account before the full price due date ( 1st of month). $50 off if deposit always before 1st ( miss one month and early pay discount disappears for balance of lease) . Net on due date and $50 late fee if not showing in my account by EOB on the 1st. I post 5 day notice on 2nd of month and start eviction ( after I give them one chance to explain delay as I have everyone's e-mail and phone and we communicate openly when needed).

They can;

electronically deposit

Walk to one of my bank branches and deposit

Use Paypal

use any system they wish

Works pretty well. 

No one likes to lose $50 monthly early pay discount, I advertise my early pay amount when looking for tenants.