All Forum Posts by: Bill B.

You’ll sign a piece of paper at closing saying you plan to live there ], usually within 30-60 days. That’s why you get a discounted interest rate and a lower downpayment, because owne occupant properties are low risk. 

Can you either rent out your current property if there’s been little/no appreciation, or sell it tax free? (Which you could also then do with your new purchase in 2 years. At least for the 1/2 or 1/3rd you lived in.) The tax savings could be larger than the regular income. 

They are a bad deal for homeowners and a terrible deal for rentals. 

Their entire business plan is wait a few days to come out, charge  deductible, go back to the office to order a part or two that will come in a day or two. Come back out and see if that part fixes it or come back in a couple more days. Never replace anything that can be patched together. 

While you may be willing to live without heat/ac or hot water for a week. It’s usually not allowed for rentals. Simply put that money in your pocket and save it up for repairs. 

The ONLY reasonable deals are:

Appliances when purchased if you have a retailer that offers unlimited repairs/replacement for 5 years for 10% of price. (Like RC Wiley) 

The money losing warranties offered by utility companies. (The power company in MN will offer you a chance to buy the warranty after the furnace/ac is broken and come back the next day to fix for free.)

Is there no one else of your religion in the area looking for housing?

Contact local AA or Alcohol rehab centers?

1) don’t forget, in LA you will have a VERY hard time raising rents more than 9% per year. So it could take a decade to get to todays market rent. 

2) it’s almost impossible if not impossible to non-renew a tenant, especially if you’re not an owner occupant. 

3) As a seller, even if I could remove paying tenants I never would without a non-refundable payment from a potential buyer that covers all vacancies for 6 months if they fail to complete the purchase. 

4) You MIGHT say as a buyer that’s worth it. But it also means you have virtually zero bargaining power as the seller can reuse any and all repairs and just keep your 6 months of rent as a bonus. 

Lastly. You think it sucks to be a landlord in CA? Double or triple that suckage for anything less than C+/B-   If you wouldn’t be willing to walk there from a couple blocks away at 10PM, that’s a hard pass in any market. 

Your choice:

1) Because of your failure to prove you have obtained renters insurance upon moving in this is your 5-7-9 (how ever many days required in your market) notice to cure the problem or leave the premises at the end of the month. 
. 
2) Because you have failed to provide prof of renters insurance upon move in a policy will be provided for you starting March 1st through insurance company X at a cost of $xxx.xx. A copy of the policy will be provided to you. This cost will be due March 1st and deducted from any payments before any rent is applied. This may result in late fees and eventual eviction if not cured within the legally provided time. 

Shouldn’t be a gain, but your cost basis will remain the same if only insurance money is spent rebuilding it. 

I love how they have the same apartment renting for $890 and $1,800. Too bad it’s not in a different state. 

Ps. Don’t forget. 2024 rent cap was 8.9% so you may never get “market rent”. (It could take 8 years to get to today’s market rent, if market rent didn’t increase $1 during those 8 years.  Not what you’re hoping for.)

You’ve probably got a few other problems. Most sellers are going to want 20-25% down as it’s going to cost them 10% to sell. Most people don’t want to sell a property and walk with zero dollars. Not to mention they’re going to want a balloon in 3-5 years. Nobody wants to make a deal with a stranger that they’re stuck with for 30 years. Lastly, they’re going to want a higher interest rate than they can get from the bank for taking the risk. So if they can get guaranteed 5% interest in an account they can get their money out of at any time they’ll want 8-10-12%. 

Ps. You can only target owners with paid off properties who don’t need the money right away. (EX: They aren’t doing 1031’s)

Pps. I accepted my first ever owner financing buyer and closed 2 weeks ago. Let me tell you how they got the “deal” from me. $150k down, 5 year balloon, 8% interest, no inspections, repairs, or appraisal, $20k over asking, and most importantly. I got no other offers in the 45 days it was listed. They EASILY paid $30k extra to get seller financing with $150k down. But they were selling an expensive house in California and had horrible credit. I was their best option. They were my only option. Now I spend 5 years hoping they make their payments and somehow refinance to pay off the balloon. 

Last ppps. I don’t think you’d slide the substitution of credit past the newest of new realtors. I know I wouldn’t have even considered it. I don’t want my property back, much less someone else’s. 

You really shouldn’t be running your business on a stranger googling answers for you but…

the google says:  

Depending on the rental agreement, Georgia landlords typically must provide a 60-day notice for lease renewals or terminations, while tenants generally need to give only a 30-day notice for lease termination.Jan 18, 2024

If a new lease is not signed, and the landlord continues to accept monthly rent, the terms of the original lease still apply, except the landlord is required to give sixty (60) days' notice before she can terminate the lease or change the terms, and you (the tenant) are required to give thirty (30) days' notice before leaving.

So you can’t non-renew until the end of April and you can’t even increase the rent until then. Next time just give 90 days notice. It doesn’t cost you anything and gives the tenant time to rearrange their entire life around your decision. 

Be prepared to lose that $80k if you don’t do an in state live in flip. Not saying you will, just saying be prepared to. If you expect to make more than 12% ($9k) as a first timer, ask yourself why everyone isn’t doing it? You can’t expect to make more doing zero work as a first timer than many people make in a a year. Ask yourself, if you lose $10-$20k are you going to consider it lesson learned and try again or move on to something else. How much more do you expect to make NET. Because it’s an out of state not live in flip taxed as the highest rates instead of tax free? Is that amount worth the extra risk? 

You MIGHT make much more money with much less risk if you house hacked a live in flip.  It’s literally less risky than just buying a home to live in. You’ll have extra income while the work is being done. You’ll be onsite to oversee the work. You’ll get better financing, pay less interest and insurance, won’t be under financial pressure to sell at a bad time, and won’t give 20-30% of your profits to the government.