All Forum Posts by: Tim Clark

Hi Ethan. I am a newbie and my opinion is probably not that valuable, but I saw your question and I have been thinking the same thing. As I have been looking at properties and listening to some podcasts, a principle that emerge is that if there are separate meters, then you can easily charge the tenants. If there are not separate meters, then it is probably best to cover that expense. The scenario that was presented was that a duplex that had separate power meters, but only one water meter. The statement was that it would be impossible to bill each tenant appropriately based upon usage and would probably be best to cover the expense. In the event you would like to push as much of the utilities to the tenant, then doing your research to see if additional meters could be installed. So if the water is city water then is the city willing to put another meter? Hope this helps!

I was running some numbers on a property to get some experience in running numbers and I noticed that the property that I was looking at did not have a dish washer. I thought that by adding a dishwasher, the rent could be increased which lead me to think about what other amenities can be added to increase rent. The market that I am interested in is Lynchburg VA. I know that having a washer/dryer is a major plus but does anyone have any thoughts on what brings the most or what amenities really do not add much value. Thanks!

Currently, I am self employed operating in a single member LLC in California. As we consider investing in other parts of the country, I am curious how a business entity can operate in multiple states. If I want to operate in CA and in VA, I am assuming that I would need to incorporate in VA as well. It would be interesting to hear from those who invest in many different states to see how they structure their business. I imagine for some of the big investors liability coverage is important and probably use an LLC as a vehicle for their business.

Thanks again Genny! Being a newbie, it is amazing to learn how different parts of the country really do have different elements to consider. Here in California, I have never really ran into insulation concerns. That being said, I guess the piece of advise that I was given still rings true. If you would not want to live in it, then you probably shouldn't rent it.

Another question for you Genny. While my wife and I have rented before, but we did move to purchase after a couple of years and has always been of the mindset of owning rather than renting. In your opinion and experience, why do people have a mindset of renting long term?

Thanks Genny! I have heard that if the tiles contain asbestos, then it is pretty low risk as opposed to asbestos in the walls. Outside of looking at structural elements of a house, it seems that there may not be too many issues to consider? 

Thanks Patti! Fantastic insights. I would have never considered insulation being a problem let alone the condensation on the interior. I see why you say they make better flips rather than rentals.

Thanks Michael! I was thinking that it was a different kind of metric. Now I realize how the property analysis is important to understand the CAP rate. I am considering beginning my investment property journey in Virginia, but I have been in California my entire life. Any pointers since I have never lived on the East Coast?

As we consider to relocate to Lynchburg, VA I would love to experiment with house hacking with my family. My wife is a little on the fence with this idea (I don't blame her), but I was going to start with purchasing a duplex. That being said, the house that we own is a 1700 sqft house. It looks like most of the duplexes that I am seeing will mean down sizing my family's living arrangements. Has anyone ever downsized their family to a smaller house? What challenges were unexpected or really became a deal breaker? While I do want to accelerate how quickly we can grow our investment properties, I really do not want to make it really hard on my family.

Being a newbie I am beginning to see that cap rates play a role in the analysis of an investment property. I live in California and am looking at investing in Lynchburg, VA. How would I go about figuring out what the cap rates are in other areas? Is this a question for a realtor or is this something that can easily be discovered online?

I am seriously looking at relocating my family to Lynchburg VA with the hopes that we will be able to begin our investment property journey. We currently own our own home in California and am use to staying away from houses that were built around mid 70's due to asbestos and the complications that it brings. Looking at the homes in Lynchburg, VA I am noticing that there are a lot of homes that are much older than what I am use to in California. That being said what are some of the pitfalls when it comes to purchasing an older building? As a newbie, I would like to avoid some of the costly and hard rehab projects that can easily be avoided.