All Forum Posts by: Steve Vaughan

I would talk to a professional property manager in your area for advice.  Maybe the injured @Engelo Romero. (sp?) He is all over your area and did a great podcast for BP!

Showed a rental and shoveled some snow while listening to my Seahawks come back out of nowhere against the Packers.  Go Hawks!

That's too bad what happened with that mortgage co.  I would seek an extension from the lender, offering additional consideration. If that doesn't work, I would be using every available credit line available to me to preserve my equity. At least it's only $35k.   In the future I would avoid  trying to get cash out to increase my chances of obtaining the financing I need.  Sometimes we have to forget the cheese and just get out of the trap!  Good luck @Alex Hamilton .

Definitely still use a title co as @Mike Sattem states.  Get an owner policy of title insurance. The seller normally covers that cost here in WA, but a creative deal is just that.  In general, I am even more careful with seller-carry's.  Most are fine, but sometimes the seller knows it's not bank-financable because of the property condition or title chain.  Good luck!

I've happily 'lost' a lot more than $500 + inspection costs for a lot less hassle than this.  I would look at it as a small price to pay for a lot of education you won't soon forget.   Carry on and replicate this mistake not!

I have to tell you. This whole discussion and the other thread along this line has me considering even harder the decision to get out of the buy and hold landlord business altogether.  I have been a pet-friendly landlord for a long time.  Not many in my area allow pets at all, so it's extra sad.  Wait, it's not a pet anymore.  I don't know what to make of that.  This discussion and its future implications that commonly use the word 'attorney' and 'lawsuit' are more than I bargained for.  It's a tough enough business to be in as it is.  Thankfully BP and you all have educated me to some different avenues of RE investing I will be evaluating!

@Israel Campos   That's great!  How did this investor come to look you up?  I have never had a seasoned person contact me to offer info. Usually the other way around. I get asked to mentor or allow my brain to be picked sometimes and I am a little hesitant.  Most come to me through apts & homes I have for rent / sale or my direct mail to other owners that are looking to acquire more property, not sell.  Please let us know how it went!

I tend to do real small increases yearly, like $10.  I will raise the rent, say $20, then attach a 'loyal renter discount' which gives them $10 off for paying on time, in full. It also thanks them for being a good resident.  I also guarantee no raises until next year, even if they are month to month.  If my raises aren't keeping up with expense increases, I recapture rent increases I don't pass on to my current good tenants when  I re-rent another apt.   The new people are at full market rent, helping reduce the cost of other tenants that have been there longer.  The problem comes when nobody leaves.  Oh wait, that's not such a problem after all!

I have used FA (First American) a lot for my standard closings.  A lot depends on the individual escrow officer and I always request my fave. Don't know if they would be the best for a wholesaler, though.  I would call a few and ask how they handle assignments and double closings.  Always wanted to know how a wholesaler deals with the excise transfer taxes in WA?  I hear Sharon V and others talk about double closings all the time, but they aren't paying 1.7% (on average) twice!

Regarding returns on improvements, I look for a 2-yr payback.  If I pull the carpet (that's bad anyway) and install laminate in the the living room, for instance, I need the rent to increase 1/24th of that cost monthly.  Not hard to do doing the work myself, but that is my general gauge.  Same would go for providing laundry equipment, upgrading a yard or what have you. General painting and upkeep is just part of the joy of ownership!