All Forum Posts by: Victoria S.

We just bought a duplex. One side came with a long term tenant. The other side is vacant. We just had a 60 y/o retired applicant, her son (in his 30s) and grandson apply. The income is 3x the rent. however the retiree applied for bankruptcy in June 2018 for medical bills. They could move in ASAP. We would do a background check and credit score on both the retiree and son. She says her credit score is >600. Would you consider this tenant? If so, would you ask for extra security ect?

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Originally posted by @Mark Fries:

@Thomas Oliver

Everybody's different. I just have higher goals and encourage everyone to do the same..

I put a valuation on my time alone of $300 per hour, that's whether I'm working at my day time job or whether I'm spending that hour on investing, and for the most part that's what I get. The $400-$500 cashflow is just the LEAST I will take for my single family rentals... Anything less than that and I'm just setting myself up for failure and accepting less than my goals and it becomes not worth it to me....I spend $200 a month on Redbull... When I think about it that way $150 or $200 a month from a rental property is just horrible to me.. I’ll

Thaats with no leverage though. Of course if I pay for my property outright I would expect $700/month 🤔

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Check out cozy. It’s awesome!

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To end or change a month-to-month agreement, how much written notice should a landlord give prior to terminating/changing the lease? I am in Missouri if that matters.

Thanks

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what are your goals in acquisition phase?

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Originally posted by @Corby Goade:

I wouldn't worry about meeting any of these "rules of thumb." Does the property help you achieve your personal goals? Are you getting closer to your end goal, whatever that is? Is the property a burden or are you happy that you own it? Of course you need to make money, but if the property is doing what you need it to do for you, don't sweat the small stuff.

But yes, you should be saving for capex, and ideally, that should come from your rents. We put aside $X per door, rather than a percentage.

Good luck!

THAnk you for your response. At the beginning we were putting 100/door for maintenance and 100/door for cap ex. We should start doing that again. When we do a percentage for the maintenance it usually comes out to the above amount. And yes, we are meeting our goals right now but we really won’t know until next year after having the properties for a while.

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Originally posted by @Thomas S.:

"Right now we are averaging $300-450/door."

Cash flow has very little to do with yesterday or "right now". You will only know what the cash flow on a property is when you sell. Investing is a long term plan and as such your cash flow today is based on all expenses you will encounter during the time you own. This is the primary reason for setting guidelines like the 1%. The best you can do is plane for your expenses by estimate higher rather than lower. One eviction with $15K in tenant damage will quickly bring this fact to light.

OF course you never know and we just started investing a year ago. Most of our properties we bought a few months ago. The first property we bought exactly a year ago, we are up quite a bit. So what would you say we do differently?

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On a couple of properties we are close to the 1% rule but they are good duplexes in great areas ($100-200 off to meet the 1% rule). And once the leases are up we will raise the rents. All our properties meet our goal of 10% cash on cash (accounting for 5% vacancy, 5 % maintenance/cap ex). How strict are you guys on the 1% rule? Also, are my cash on cash criteria too lax? I know we should likely put 10% for maintenance/cap ex.

Right now we are averaging $300-450/door.

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In CoC calculations how much do you put for maintenance and cap ex expenses if you are doing most of the maintenance yourself?

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All Forum Posts by: Victoria S.

Victoria S. has started 43 posts and replied 112 times.

Post: Questionable tenant application

Post: Questionable tenant application

Post: What is the minimum cash flow per door per month you use?

Post: What is your system for collecting rent?

Post: Month to month lease

Post: 1% rule vs cash flow

Post: 1% rule vs cash flow

Post: 1% rule vs cash flow

Post: 1% rule vs cash flow

Post: Cap ex and maintenance costs