All Forum Posts by: Austin Johnson

I would buy the property and discuss with the tenant your intentions to raise rent and rehab the property. Frame it with the idea that you're working in both of your best interest.  That SHOULD give them the idea that 'hey, maybe we should move". how long have they been tenants? could they potentially afford the market price rent after rehab? don't make that assumption but let them make that decision. (even if you think you know the answer, letting them answer it allows them to save face).

As Chad said, it's a TON of risk for a realtor to scheme behind the scenes over a few hundred dollars extra. My license, my reputation and ability to sell another home > a few hundred bucks.
Think about this too. Most agents don't get the full 3% ($240 extra) some get 80% of the 3%. so $192. some are on teams and get even less! $96 if you're under a broker and on a team. man, I'm not dealing with the headache of a fake offer and all that for $96.

Everything said above is spot on, let me provide an example.

I put a house under contract with 7 days due diligence. On day 3 upon searching the county sheriff  records I discover there is an undesirable neighbor that would not go well with families. I can legally use it as a reason to withdraw/terminate the contract. 
It's essentially a 'let me deep dive and research this property and the surrounding area and make sure it's REALLY what I want before we investigate the house itself".

worse case scenario, he drops it and picks it back up again. keep the audio quality up and bring on quality guests and the show will maintain its appeal. 

I second what @Bud Gaffney said. 
a Rockstar Realtor can/will be a central hub for all your connections. research local agents and meet with one or two.

Edit: what specifically are you looking to do as an investor? when I first dove in, I thought that was a simple answer but there are a TON of different areas you play in and each of those has a unique path as well. What are your goals? finding this and defining it can help a lot with who you need to meet and what to discuss. Imagine a friend came to you and said "I need to market"  You would probably have a thousand options and no idea where to point them before they clarified and got you what @Brandon Turner says a CCC (Crystal Clear Criteria). 
What's the end goal?

my only fear is buying a property at 30-40k is screaming fixer upper. if you spend the 3040k on purchase. do you have enough for the fix and the holding costs? not to mention closing costs.

read the above link. following that, check out Ryan Dossey. he posts good information on getting started as well. 

https://www.biggerpockets.com/...

job market: are there jobs in the area bringing people in? are they all in one sector or multiple sectors? if one crashes, how will that affect the house hack?

average costs. is the market there ridiculous like California or  moderate like Missouri? how far off is the good ol' 1% rule? if it's give or take 10% run the actual numbers. 
example: 100k property and gross rent is $850-$900. 1% rule screams no but  run the actual numbers through your mortgage broker, insurance agent, etc. to get an idea of true costs.  

I would suggest getting a knowledgeable agent to help you on the first deal. They can help you run comps for the area/neighborhood and help decide if you're over/underpaying. 

personally I'm cash flow cash flow cash flow. if I cash flow $200/month but it appreciates 1% a year I'm still taking it. other people are more speculative and prefer appreciation. if you're not already, get clear on which you are as well. 

use websites like rentometer to run comps on rents. if it fails (like it often does in mid Missouri) go to apartments or google rentals in your town and run rental comps. (maybe a quality agent can help there too).

Yeah... this Fed "finding a back bone" won't happen. They've made that clear lol