All Forum Posts by: Wilson Churchill

If a house has a slab foundation, it is easy to replace carpet with 18" ceramic tile. The tile will likely last for as long as you own the property, and individual tiles can be replaced. It is much easier to clean and maintain than carpet.

Don't forget to factor in closing costs when determining total costs. I don't know what the fees are for personal loans, but securing a mortgage will likely cost at least a couple thousand in closing costs. Credit cards are the best option, in my opinion. You can get 0% for 18 months with a 3% fee. Some cards even offer no "balance transfer" fee. I put balance transfer in quotes, because you can access balance transfer funds using checks. Deposit the checks into your account and use the cash to buy a cashiers check for the closing.

I would say go for it, but don't offer a discount and insist that they pay all in cash. I've accepted 6 months of prepaid rent before. It was convenient, because the tenant also has an account at the same bank. We met at the bank and had the teller make a withdrawal from her account and a deposit into my account.

Yes. If they wanted to leave after the 6 months, no problem.

Values are generally driven by interest rates, loan standards/government regulations, employment, inventory, and foreign investment. To blame RE investors who seek a certain cap rate seems ridiculous. It is not as though all land lords have joined a 2% cult. Even if they did, this would have a smaller impact than the factors that actually influence values.

I currently use Excel. Lots of people use either Quicken Rental Property Manager or Quickbooks.

The higher the rent to price ratio, the better, IMO. I just purchased a property that will gross almost 5%.

I first learned about RE investing from Carleton Sheet's book. They mention that a property should have at least 1% to have cash flow. I think 2% is more conservative and can help new buy and hold investors to avoid not being able to pay the bills.

Simply moping the walls (bleach, vinegar, or tsp) and cleaning the carpets has worked for me.

If you live not to far from a low-income area, I would suggest buying one or two cheaper homes outright. The cash flow from inexpensive units will help you to reach your goal of passive income quickly. 

I invest in low income areas, but am careful to avoid the part of town that is known for crime. Get to know your target market. Talk to the locals and see where they say the good and bad parts of town are. The goal should be to avoid neighborhoods where your plumbing or furnace is likely to be stolen.