All Forum Posts by: Jeffrey Armstrong

I worked in community banking for the last 7 years.  As others have stated it's based on the state of the bank.  If they have a OREO portfolio that is large they will want to dump it and get rid of it to take the losses and clear up the portfolio.  There is a ratio of allowed non-performing loans( can't recall it) but if you start exceeding it regulators start to question your underwriting.

I think there might be a  problem with your numbers.  I'm only getting a 2.7% cash on cash.

8% vacancy, 10% capex, 10% repairs, taxes(6200), insurance(1100), plus debt services.  I'm only getting a cashflow of $75 a month.

It's a rent multiplier of 8 which is fine, but the taxes are killer.

It's as @Brie Schmidt  stated.  They are responsible up to the point of a new lease.  Good luck getting more than the deposit.  I don't attempt to get more than the deposit, it's not worth the frustration.  A) even with a judgment your still not going to see another $.  B) the effort is better spent re-filling.

So, get it listed and get it filled.  Then you will know how much you can keep of the deposit for missed rent.  Hopefully you don't have damages as well.  You have 21 days to return a deposit(or at least an itemization of why your keeping it) after move-out, or when you learned they had vacated.

Janesville doesn't have any provisions that I'm aware of and follow state law.

It's not that far from Janesville where I have more rentals. It really came down to something I was interested in showed up in a south central search. :-) I was pretty involved looking into Beloit properties about 10 years ago but never pulled the trigger. Ergo, my knowledge of the area is stale. Janesville is getting dry for me. I try to stay mid market and the good ones are getting slim. Most of the duplexes are owner occupied and they are asking SFH prices, not basing it on rent income. They are all cash flow negative. I need to branch out.

I'm looking at a few multi-family in the area.  I'm planning on driving the town but was looking for guidance on where to stay away from.

Jeff

Welcome.  I'm am new to BP and slightly less noobish on buy and hold, I have 3 doors and looking at 2 more shortly.  I could probably tell you more about what NOT to do than what to do at this point.

Jeff

Thanks for the pics, next time my wife complains I left a mess I'll prove her wrong! :-)

I'm new here to and planing on going to the meetup.  Welcome!

I'm tired of my renters putting up and taking down curtain rods.  Yes it would be easy to say no, but would they listen?  Does anyone have experience with a cheap yet durable curtain rod?  Cost, purchased from?  Most the stuff from the big box are flimsy junk.

Thanks for any feedback

Nice to meet everyone!

Sharad, I'm not sure exactly where in Indiana.  I just have heard good things about the area from other investors I have talked to that own property there.