All Forum Posts by: Sam Hopkins

@Brandon McMullin flood insurance won’t pay for a lot of stuff. For instance it doesn’t pay for carpet. Check your fema policy. You can build a new buildIng, but you’ll have to go through hoops. For instance the foundation needs to be raised and water must be able to flow in and out.

@Umair Iqbal find a blank Bill if Sale on the Internet and fill it out each time. If you don’t get a receipt, you can’t write it off for tax purposes. If you get audited you’ll be up the creek. Try to pay by check. At the very least, take a picture of the person and the thing you are buying and where you are putting it. When you remove it (say it breaks), take a picture of it being removed and print it.

@Philip Mullinax if they pay on time every month, it is cheaper for you to eat the repair as goodwill. One month of vacancy is more than that $600 repair.

@Luke Grosskreutz The OP is paying nothing to get a $138,000 house. Even if something breaks and the OP has to fix it, it’ll just take longer to get hIs house. The 42% return is correct. He paid $35,000 and he’s making $15,000 a year in rent from the tenant. Why do you think that is not a 42% return per year? He is taking most of that return (other than the $70) and applying it to his mortgage/insurance.

@Dennis M. The OP would have to have $138,000 in repairs before he would lose money on thIs deal (assuming the asset didn’t depreciate). The OP paid no dollars for $138,000 asset, someone else is. Even if we take into consideration vacancies, it just takes longer for the renter to buy the OP the house. Any money the OP puts in is paid back.

@Jennifer Rysdam I had the same problem. Look IP “Stone and epoxy” floorIng. A brand name is Nature stone. Basically it is small pebbles and epoxy glue mixed together. They trowel it onto the floor. The floor allows water to flow through it to drains, or can just be sucked up with a shop vac. It also allows the concrete floor moisture that comes through it to evaporate. Because it’s troweled on, floor imperfections are smoothed out. I installed it and threw down an area rug. It’s the best. It will last forever.

@Krishnan T. If it’s flooding from natural disaster, there’s no recourse per say. The property manager can’t stop the river from flooding. That’s the risk she took renting in a flood zone.

@CJ Ashton if they move, it’ll take you 26 months to recover the $50 increase. Maybe more if you don’t rent in one month.

@Jennifer Darby I’ve switched to vinyl plank waterproof. Throw rugs are so cheap now people can just buy them if they want carpet.

@Hubert Ato-Bakari Chase I’m amazed you got 12 years! It’s your expense. I usually buy all brand new appliances to eliminate drama like this.