All Forum Posts by: Bob Romano

What would you guys do? After accepting an offer of $9K less than asking and giving buyer a $5K closing credit, she now wants 18 items fixed on inspection report. She is even requesting a toilet paper holder!!! Seriously!!!!

My theory is if I just reduced the price by $14K she can fix all the items. Nothing major either, probably $2,500 to fix everything. Now I don't want to scare her away so how do I approach her?

I only paid $160k . I can sell it for at least that.

It is actually true Greg S. :

Rent is $1850 and and my all in expenses are $1049.00 mth, so its actually over $700 mth.

This is why I am on the fence about flipping and paying all the taxes and fee's on the net return when I can hold on to it and ride it out.

Just purchased my second rental property! My question is should I rent this one out too or flip it and make a quick 30-40K net on it after all taxes and commissions are deducted ? I can clear $700 positive cash flow each month if I rent it . The SFH is in a really hot area and the rents are very strong. I bought the house for 162k thru probate court. Needs minor work like floor sanding and paint. I have to put about 10k into it for a quick rehab of the kitchen. A house on the same street as mine just sold for $279k and it was 200 sq ft smaller than mine ! I can easily list mine for $259k . Would you take the quick profit or rent it out and cash out down the road and take the risk of dealing with another tenant?

@russellbrazil . I checked with my agent, they would not cover any underground repairs simply for the fact that they " unforeseen" and there is no way to check for this ahead of time he said.

They would only cover the damage to any contents in the home from the water coming up. which wasn't much.

Found out first hand how important this is .....I bought a SFH about 7 months ago. Found a great tenant , getting top dollar for rent and I am clearing $500 positive cash flow each month. All was going great until tenant called 2 days age and said her discharge hose from the washer machine was backing up from the drain behind machine. Had a drain company come out to assess it and low and behold, I had a root obstruction and broken pipe in the underground about 25 ft from the foundation! It was so clogged, the opening was the size of a quarter! Final bill to run a new sewer line from the house to the street, $5,500.00!!!!

Like I said , always figure in Cap Ex for this one reason!

I charge $35 per person to do a credit and background check on each person who will be living there. I feel it weeds out the non serious renters who are just "kicking the tires" and who aren't serious.

So my Cash on Cash return is 13.8 %

Total out of pocket I put in $38k which includes the deposit and closing cost.

So if i'm netting $510 month after all expenses are paid, does this sound like a good deal on a single family home?