All Forum Posts by: Tchaka Owen

Heath has great points! I'll address #2 by saying you can get year-long leases. Other than the one year I lived in dorms, I had year leases in college.

What's your reason for budgeting $120k for repairs? How nice are you trying to make this place? You do want a desirable place, however you don't need Taj Mahal status. Better than "contractor grade" is good, however no need to spend that much....unless maybe $35k of that is going towards a new roof and 4 AC systems.

To be clear, this is for you to live in, correct? Ie, it's not an investment property.

If it was, I'd say no way in hell. You make your money when you buy, don't overbid and play the appraisal game. Side note: my former business partner and I partnered up with another group that apparently was bidding high on REOs then beating them down after inspections. Before long, they were blackballed by REO agents.

Hi Alan,

Just a few comments:

1. keep the contact info of that manager; call him in 5 years to see how he's doing and take that opportunity to politely share how successful you are. I'm being serious. 

2. Self-directed IRA is cool! Do know that there are strict rules on how you can use it on real estate. And as awesome as real estate is, do diversify....pick up some mutual funds, etc.

3. You and your wife are awesome for picking up a house a year! Ramp it up to 2 or 3 per year. And look for some multi-units.

I'm hoping to do the same as you already are. Maybe I'll call your manager too and let him know you inspired me to become wealthy. :-D

Well done! Spectacular 'after' pics!!!

$3.50/sf seems a little low (at least in FL). Roof on a home that size should be $9k-11k for the better quality shingle (assuming it's not a funky roof). Either way, that's WAY below $30k. Hell, you could put on tile for significantly less than $30k!

Be sure to offer it the tenant to purchase, he might be interested and that could save you time and money. Especially if you've taken good care of the home.

In South Florida it's generally been $25/linear foot (6ft high, wooden). I've heard of a tad higher or lower, however that's the general price. Not sure how Central Florida compares.

Generally speaking, a PM's function is to manage property; an agent's job is to buy/sell. Unless there's compelling reason otherwise, I hire the agent to sell the property. You did say both are excellent, which tells me the agent would do well. If the PM is a successful one, I'm not convinced s/he would have the time to do that job as well as sell my place. Note: by "sell", I don't mean list it on the MLS and sit back (otherwise flat-fee would suffice). Good luck!

Great job @Guillame D.!

Are you doing this in Montreal or in the US?

A possible cure is to tap some equity....if you intend to keep buying, it's probably not the best financial decision to have all your cash tied up. Call a place such as Angel Oak (there are a number of other companies as well) that will refi your NOO properties (or just 1)......rate won't be as low as Fannie/Freddie, but you will be far from hard. Maybe 6%. That will free up cash.