All Forum Posts by: Bob Romano

Hi Chris, it was listed at $189,900 , I offered $175 he countered at $180. Im sure he will accept $172,500 now. I already have a tenant who wants it with a 1 year lease too.

If comps are $180- 205 , is a purchase price of $172,500. a good buy? 

It is already remodeled so no work needs to be done on the inside, just power wash outside .

It is a 3 Br, 1 bath SFH. Once rented, monthly cash flow of $344 . 9.86% COC ROI

Thanks for your input @Thomas S. Other people tell me the same, do not rent to employees.

My theory is , he still needs a place to live if he ever quit or was let go. But i hear you 

I can actually get $1650 month , i gave him a discount because he works for me for the last 4 years and he has a wife and kid. After speaking to his current landlord, he has never been late on rent and keeps the place spotless. He just dosen't like the area he is in now that why he wants my place , much better area.

What would you guys do? I have an option of buying a rehabbed SFH 3br, 1 bath for $175,000. It is in a class B neighborhood and all the repairs are done on it. Comps are from 185-210. Just needs a power wash on the siding and some new plants out front. Hers is my question: I already have a renter for it. One of my drivers wants it . The rent is $1500 month and I would cash flow $354 monthly. He would sign a lease just like everyone else.

Every one i take to show them what they think of the house, they say the  house needs work, which it doesn't, just cosmetic on the outside. 

My theory is I can get the house rented asap and have a positive cash flow right away. I know the guy can afford it because he is paying the same price now in a worse location, plus he gets a monthly pension from the military which easily covers his rent. 

What would you guys do? buy it , have an instant renter, positive cash flow right away  or keep shopping around for a higher price house in a better area with a little higher rent and do the tenant screening stuff, etc ? 

Due to the bond market going crazy the last few days, within 24hrs my rate on a SFH investment house went from 4.375% to 5.5% !!!! I did not lock in yet.

It is an increase of $120 per month. The question I have is should I wait to see if the market recovers a little so the rate " hopefully" goes down a bit? I don't want to be on the sidelines waiting and then get out bid on the house. There is a highest and best in place already and the house was listed 24hrs ago! The open house had 26 ppl go thru, the house will not last. The broker likes my offer better because its 20% down, $2500 above asking, with a $5k deposit and i will let sellers rent for a few months until there house is built. Much stronger than an FHA , first time buyer. But $120 per month more for that rate is alot. The COI will be 10.6%.

That ROI is way too low. I shoot for 10 -18% or I walk away.

Hi @Matt Romano, I would change the lease to state that the tenant is responsible for any and all weather related maintenance issues such as salting & sanding. I have this clause in all my leases. I would make it clear that you won’t reimburse them any longer as you go forward. 

I think as long as you buy for a positive cash flow and not speculate on appreciation, you will be ok.

Hi , does anyone have a good contractor or home improvement co. they can recommend in RI?

Looking to get quotes on doing a kitchen remodel. I am in Warwick, RI