All Forum Posts by: Aaron Vergason

I had a house under contract for two days.  An agent saw the listing as saw it was a great deal so she got the Seller to take her signed purchase offer (From my Agent and Me) to an attorney and had the attorney write a letter stating that he recommends not doing the deal with me, then that agent put in an offer that was 5k to 10k higher than mine and got the deal.

I'm not a wholesaler, but this was basically a wholesale deal for me.  House was worth 90k, I had it under contract at $51k for 2 days before this other agent came in with a "Buyer" at 60k and she got the seller to get a letter from an attorney which let her out of our deal...

Anybody had this happen to you?  I'm in NY State.

That's really good!  do you own them outright or have like 30 year mortgages on them?  I wouldn't mind those numbers either if they existed here.  Houses around here rent for between $650 and $1100 a month mostly, so a $500 profit would be quite challenging.

I'm in agreement with the others (And you now too).  Your dream house may expand in the future too because you will be making $15k to 20k a month passively and your dream house may be a 2 million dollar villa on the water instead :)  and that that point, why not buy it :)

I'm living a bit below my means as well, and while it's challenging and my friends don't understand why I don't drive new fancy cars and have a big house, I know that it will pay off in the future.  Also if you have any kids or young people who look up to you, it will teach them a good lesson in patience and in delayed gratification.  

Congrats on the promotion though!

My Single Family Houses are around 30% to 40% Expenses vs Income before I pay my manager.

My Multi Families that are in C Areas that I pay utilities on are in the 80% Range before I pay my manager.

This is eye opening for sure.  Thank you @Scott Stevenson for this suggestion.  I'll need to either sell those to owner occupied people or someone who is a handyman themselves and wants to have a small portfolio that's self managed or just pay them off so the 20% left over is actually profit instead of going towards the mortgages.

My actual income was $153,000 and my expenses not counting debt service was $118,000.  This is 77%!  I'm in NYS so maybe my taxes are higher here.  My taxes alone were 22% of Gross Income.  Insurance was 7%.  Maintenance and repairs 23%.  

I'm focusing on maintenance and repairs right now because we are getting properties fixed up correctly.  They were band-aided before I bought them.  I expect that item to level off around 15% in the near future. 

I'll run the numbers against each property and see when they shake out individually.

What percentage is your land taxes compared to your portfolio?  (This question is for anyone) :)  and what start are you invested in?

What are the rents at each property?

I rarely open the auto forward emails I get from MLS criteria I setup with RE brokers. Opened this one on Tuesday and saw a house for sale, built in 1997, 5 Acres partially zoned agricultural, 3 bed, 2 Bath, New Pool, two nice decks, beautiful view of the hills, $50,000

I jumped on it and made a cash offer of $51,000.  Had to be cash because seller would otherwise lose the house to foreclosure.  Offer is accepted.  The RE broker has a conventional  buyer at $70,000.  Should I just take that and walk away with $8,000 to $9,000 profit after closing costs, broker fee, income taxes, etc. or should I try to owner finance at an $80,000 sale price which would net me about $5,000 a year plus their down payment?  The Fair market value of the house is $85,000.

I know owner finance may be more work, but I would probably make 3 or 4 times what I would if I just sell it right now.  I have never owner financed something to someone before.

What would you do and why?

Does your contract have a timeline? If they are supposed close in X days but cannot wouldn't that give you power to keep the escrow? Maybe the finance contingency trumps the timeline. But it shouldn't.

Okay cool.  I'm interested in beach area vacation rental around SC and lower.  Maybe Texas on the coast as well.  I'm guessing their occupancy is higher if the weather is nice most of the year.  BUT the family vacation rental would still be around the summer when kids are out of school. So your 90 to 120 days is still probably good.  I'll check out that site.  Thanks @Blake Brose

Just listened to Show 57 with Matt Landau.  It's an older podcast, but I trying to get through all the older ones.  It was a great show about marketing vacation rentals and how to be the best in your market, but there weren't any numbers. 

Who out there has vacation rentals and what kind of numbers are you looking at in your area?  Purchase Price, Rehab, Furnishing the house, Expenses, and Nightly rates/ occupancy levels.