All Forum Posts by: Andrew Bosworth

Thanks for the feedback Dave.

Wayne, why is this?

Glen,

Curious...Who was the "full service company"?

I am currently looking at a 4 unit property, fully rented.  My model is to buy properties with cash, renovate, lease and refinance.  If purchased and renovated at the right price, this allows me to get my money back at refinance.  Up to this point this has worked well for me. 

Because this property is fully leased, there is no opportunity to improve the property prior to closure/appraisal.  This means the appraisal will be based on a sales approach.  If appraised at the sales price, and only getting 80% of value, my money will be tied up for a while.  Not what I want.

What I am considering is making an offer above asking, then writing a separate addendum where the seller provides "assistance" and brings me a check at closing.  My agent has discussed this with the seller's agent and they are open to it.

For example: Let's say they will take $80,000 for the property, but we agree to a sales price of $100,000.  The final sales price is $100,000, but the seller brings me a check for $20,000 at closing (independent of the actual sales agreement).  Hypothetically, based on a sales approach, it would then appraise for about $100,000.  With a refinance loan for 80% of value, I get my money back. 

Anyone else ever try this method?  Any thoughts...pros & cons?  Did it work for you?

Welcome Landon!

There are a lot of great online payment options, such as www.rentalutions.com.

Thanks for the feedback.  Called the electrician...

A tenant just called asking to have changes made to some of the property's electrical outlets (they are the old 2-pronge outlets, versus the modern 3-pronge type).  As it is not a necessary repair/maintenance issue, I did not agree to pay to have them changed.  The tenant has offered to make the changes themselves at their own expense, noting that they have done this type of work before.

Thoughts?

Marlene,

Where is the house located?  Send me a PM if you prefer.

Is anyone aware of a sample Release statement?