All Forum Posts by: Steve R.

I agree with the folks that said to use the listing agent. That is how I started and it gave me a chance to meet lots of different realtors to see if they were a fit for me. I eventually found one that works well with me and doesn't mind putting in lower offers.            

I would sell now if you think you can come close to breaking even. If you really want a rental property, reinvest in the area you are living in now. You can take your time and find a good deal that will create positive cash flow while accounting for vacancies, maintenance, CapEx, etc..

What @Ned Carey said is correct. 

Assuming your buyer is a flipper he is going to want to purchase the property at the 65% - 70%. Of course, this number can change a lot depending on the difference of opinion in ARV and repairs.

I would tell him to shop around a little for insurance. They all seem to have their own pet peeves. I have had my share of trouble with insurance companies and I have learned to just move to the next one if the current one has an issue with my property.   I was just notified that one of my properties was being dropped because it has asbestos siding. The siding and paint is in great shape. After inquiring into it, I was told that the company does not insure any property with any asbestos material at all. There are plenty of other insurance companies that don't have an issue with asbestos so I will just move over to one of them although at a slightly higher rate.

I am mostly a buy and hold guy and I use all of these. The 2% for a rough guide to see if the deal is workable. The 50% rule to roughly show expenses on given property and the 70% rule so I know how much I want to have into the property so I have an exit if needed. 

These work for single and smaller multi-family. I'm not sure on large multi-family or commercial since I have not delved into that arena yet.

I haven't tried it before , but it may be tough to write something in the contract that the seller would agree with. If you discover after you purchase that the seller knowingly hid the fact that water gets in and did not disclose it, you can take legal action, but you would be in for a real headache. 

From my experience, any water proofing from the inside fails pretty quick. To water proof it correctly, you need to dig up around the exterior of the foundation and install a water proof barrier. Most of the time though, you should be able to stop all water with gutters, proper ground slope away from the house, a functioning tile or beaver system, and a sump pump. 

Hi Alessandro,

If the sump pump and beaver system are working I do not see any reason not to proceed. You could have the beaver system inspected to make sure it is functioning. I have several older properties that get some water in the unfinished basements during heavy rain or spring thaw and it has never been a issue. I provide a dehumidifier for the tenant to use if they choose. If the basement is finished it would definitely be concerning. Best of luck if you choose to proceed!

@Natalie Kolodij

That makes sense! Thanks for your help! 

To clarify a little...

Most of my rentals are not right on the way home. Most of them I have to drive a half to two miles out of my way. I have been rehabbing a couple of rentals lately so I have been working over there several evenings a week after work. I had been deducting the mileage from work to the rental and then from the rental to home I would count as commute. A fellow on another site mentioned that he deducts the drive from the rental to home as well since he was at the rental for a legitimate business reason. I would love to do this since it would add quite a few miles but I don't know if it is legit. 

Hi All,

I'm confused about whether I can deduct this mileage. Here is the situation...

I commute 15 miles to work every morning and after work I often stop by one of my rentals, which are in the same town, to pick up rent, do maintenance, etc.. Am I only allowed to deduct the mileage from work to the rental or can I deduct from work to the rental and then from the rental to home?

Any insight would be appreciated!