All Forum Posts by: Alan Grobmeier

No legal restrictions.  But if you don’t do a 1031 exchange you will be on the hook for recapturing depression expense.  

@Account Closed, just tell him you are trying to steal his house from him while he keeps liability.  

Don’t bother.  I get ‘yellow letters’ daily.  Despite the fact I have no intention of selling any properties to wholesale ‘thieves’.  

You’re not solving a problem, you’re stealing equity from an unsophisticated seller.  :-(

@Jacob Turner, I never ‘confront’ someone when I want their help.  I consult them.

The answer is:  Not only no, but hell no.  ;-)

Refinance, yes.  Sell, no.

You take the equity and buy another property w it.

@Clifford R Fowles, NEVER.  Or unless you are too far away to manage.  Or maybe 30+ properties.

pm is very profitable.  You get 1st months rent for placing a tenant, 10% of the gross thereafter.  Then you also get to upcharge to ‘project manage’ any maintenance issues.  If you have a brother in law that’s into ac, plumbing, etc., you can get a ‘kickback’ as well.  Evictions are ‘bonus money’ as the circle starts over.  ;-)

Too many gurus, not enough truth.

Why would ANY successful person give an inexperienced real estate investor money for a deal?

Now you know why using OPM (when you’re broke) doesn’t work.  ;-)

Lower the price.  Real simple.  ;-)

I heard a saying once:  bulls make money, bears make money, pigs get slaughtered.

It appears this property has been a ‘millstone’.  Drop the price.  Sell, even at a loss.  And move on.

@Gus Muller, the tenant is not responsible for the HOA fees. You, as the owner, are responsible. The HOA is not going to put a lein against your renter. It will be against YOU and the property.

As a result, you can bet the HOA fee is NOT included in the $800 per month rent.

The Math:

Income:  $800

Outgo: HOA $225 + Financing costs (probably around $375 a month, CapEx, etc

Your down:  $22,500

It really depends on the age of the property, condition, etc. Just because it has been rented for 10 years with minimal CapEx doesn't mean YOU will experience the same.

It looks to ME that your 'blue sky' return is about $100 a month, $1200 a year.  And your cost is $22k.  About a 5.5% cash on cash return, based on 'blue sky'.  Which NEVER happens.  

You don't have enough margin for me.  I'd pass.  

Finance it, but do it smart.  You probably not see better interest rates than you do today.   I’d say 60% ltv & you should be able to weather most financial storms.