All Forum Posts by: Scott Johnson

I'd totally advertise it as an amateur ghost hunter's haven! Great place for them to learn and practice!

Hey, BP!

I spoke with the local utility company about an 8-unit property I'm analyzing. The water is master metered and I'm looking at sub-metering it out. They laid out two options for me:

1) Have separate meters for each unit tapped into the easement at the front of the property. (The usual and costly option)

2) Have a third party place meters on the lines that go to each unit and divide the bill/charge you each month (with a fee of course :P).

Does anyone know of any third-party metering companies (if that's even what they're called) they can refer me to? This is a new concept to me. 

Thanks in advance for any help!

@Sriram Kumar Bikkina, I also consider depreciation to be akin to cash flow, so if my actual cash flow is zero or a little above that I know I’ll be gaining more income reduction benefit from the property and the loan gets paid down over time.

Not sure about Canadian laws, but here in the US we can do a cash out refi and pull the money out tax free. The difference between this method and cash flow is that it takes longer to receive my mailbox money but it serves the same purpose and it’s tax free!

Hope this helps!

What's confusing me, @Nia L., is all of these balloon payments per annum. It's sounding overly complex and needs to be simplified. Don't overthink it. Do the numbers work at 3K/month mortgage payment? 

 @Joe Splitrock this is gold. Love using the "amount you've saved over the last 20 freaking years" to help explain it 

 @John Gach, you’re throwing a lot of hypotheticals, which is a red flag.

If she accepts the $750 rent, there’s zero reason to renovate albeit for things that should reasonably be done to bring the unit up to the $750/month standard.

Be sure you talk to a property manager and a Realtor to know what updates the rental/sale market will tolerate.

Doing things because you bet it would be worth a certain amount is a sure fire way to overspend and water down an investment’s potential or lose money.

@Sunil Kurian I would say he’d be going beyond his contractual obligations as well. If he were to give her leeway that he doesn’t give other tenants, HE could be in trouble with the judge when/if he tries to evict.

He definitely needs to be respectful while standing his ground.

 @Account Closed

Go to different types of lenders and start asking them questions. Since you’re new, it’s going to be very uncomfortable but it’s the best way to learn. Ask them what seasoning is, and bring a specific property to discuss.

Ask them what you can expect if you’re going to buy a property and then refinance it. What are the challenges you might come across? Normally seasoning is six months, but that could probably vary.

Also, ask them what the loan to value is on their cash out refinances. Sometimes they are less than 80%.

I know it’s not exactly what you were looking for, but I hope this helps guide you.

 @Account Closed I’m not sure I understand. Why would you not be able to cash out refi, unless you burned it to the ground?

Have you talked to lenders to see how many months of seasoning they require?

@Carlos Lez there’s no reason to be appalled, and the reason they are leaving isn’t anyones business unless it’s due to the landlords not maintaining a habitable unit.

This is a “follow the lease” situation. 

Take time to review the lease and see what reparations need to be made by the tenant, since they’re defaulting on their contractual obligation.

Be a good person and be honest with the new landlord who’s requesting a reference. Good faith pays dividends in the future.

Hope this helps!!!