All Forum Posts by: Troy DeLong

Was VERY intrigued after listening to the BP Podcast episode with Pace Morby discussing Due-On-Sale insurance. But that Equity Assurance website does absolutely nothing for me... Most of their site is "under construction". No contact information. No pricing. Seems like a dead end. Very disappointed.

That being said, are there private money lenders out there that will be your DOS insurance? EX: I get under contract on a sub-to with a Seller for a $150,000 remaining balance and want insurance for that potential $150k due-on-sale. Could a contract be made up where private insurer agrees to cover the potential DOS amount for a monthly premium from buyer of, say, $50/month? Or whatever terms the parties come up with.

@Michelle B. Yes, I think most around the area would agree that Mason is the best of those 3. Holt still can get very good rents in the nicer parts. Mason has great schools and is a county seat city (Ingham County). County seat cities are usually more active with jobs and businesses. 

@Michelle B. Holt (Delhi Township) requires rental registration and inspections every 2 years. They are not quite as picky as Lansing, but still require extra fees and inspections. The areas and tenants are much better in Holt than in Lansing. 

Mason is the best location of all three, but you will definitely pay more here. Mason, at the moment, does not require rentals to be registered or inspected. 

Hey @Michelle B., 

Lansing is a great option for affordable properties if what you're looking for is cash flow. Good vs Bad neighborhoods in Lansing is subjective and is always changing over the years. I would recommend finding an agent who knows the neighborhoods and can point you in the right direction. A good start would be Old Town, Reo Town, and Downtown Lansing (East side). 

City of Lansing can be pretty picky when it comes to your property "meeting code". I would expect quite a few repairs if the property isn't already licensed. After it's inspected and approved, it's pretty easy going after you pay all your fees. 

Hope this helps! 

@Kyle Hilliard Much of what Brandon said above. Those annual relicensing fees and inspection fees are just the cost of doing business. Although they are a bit higher than most cities around the Lansing area, just build those into your rents. 

When considering whether to sell or rent it out, I would keep it as a rental if you don't need the cash out of the property. If you do need the cash for another project, then selling would be the way to go. 

@Allen Gross I love seeing landlords out there who look to actually take care of their properties and tenants!

Unfortunately, what you're looking to do might cause more headache than not... This could get pretty grey in some areas and all it takes is one bad apple out of all your properties to make you wish you had never done this. 

For the tenants that you respect and appreciate, I'd keep it simple with a handwritten card and possibly a coupon/gift card (Free holiday pie, a free turkey, $20 gift-card to the local supermarket, etc). Most people like to enjoy some sort of holiday meal and/or HAVE TO buy food and this would pair well with the timeframe you're wanting to give something back. 

Most landlords out there never speak to their tenants, so something as simple as this will show good character to your tenants. And feel free to save money and ignore the tenants that have given you headaches! Best of luck. 

@Tushar P. @Duke Giordano   So is this essentially the same idea as doing a 1031 Exchange? You're just deferring these depreciation recapture taxes until you run out of deals, then you have to pay up on the accrued depreciation recapture after selling deal #Final? In the end, will you have to pay BOTH depreciation recapture and long term capital gains? 

@Stephen Lynch Even better! 10% markup for that is standard.

@Stephen Lynch

- How are you allowing contractors in/out of the property & securing materials? This is where a project manager or General Contractor would come in handy. They can put a lock box on the property. Changing the code after getting quotes and choosing your contractors is recommended. "Boots on the ground" that you can trust is one of the most important aspects of long distance rehabbing. I've heard of people paying their agent a Project Management hourly rate for doing this. 

- Do you have them buy the materials? Do you typically pay 50% upfront? I recommend you have your contractor purchase and manage any and all materials. I work for a general contractor and we've taken payments several ways. 1/3 (Contract signing / down payment), 1/3 (Upon start of services), 1/3 (Upon completion of project). We've also worked with Hard Money lenders and they will not pay until the work has actually been inspected and signed off on. But, this usually costs the Owner a couple hundred dollars for each draw. 

- How are you keeping up on their progress? Ask, ask and ask some more. A good project manager will give you weekly updates, but it never hurts to ask "Hey, where are we at?"

At the end of the day, interview and find yourself a trustworthy local to build a relationship with. Referrals and 'word of mouth' are some of the best to start with on here. Compensate them to where they will work hard for you and will want to put your projects at the top of their list. Always work with licensed/insured contractors and search the internet for reviews on them. 

@Kristin Swineford check out www.TravelNurseHousing.com

It'll vary between the travel agency booking rentals for the nurse, or the nurses booking themselves. You could always reach out to the booking agencies (if you can find who they are) and try to get on their "list". 

Travel nurses are high turnover, so if you worked out a deal with the agency and offered a lower rent, they could help ensure your vacancy rate is as small as possible (if not zero). 

Travel nurses want as LITTLE as possible to do when it comes to the actual 'move in'. Keeping the units semi-furnished and utilities in your name will ensure these travel nurses have as little to worry about as possible when moving in, since they only stay for several months at a time. Just build the utilities (internet included) into your rent price. 

Hope this helps!