All Forum Posts by: Alexander A.

@Michael Ting

I self manage my only rental that is close to me and have a property manager for my 3 other out of state rentals.  I work a full time day job and the rental I manage doesnt take much effort at all to be honest.  In the 2 years Ive self managed ive maybe put in 15 hours worth of actual work and most of that was me doing my own repairs.

Eventually though as I grow older and really want to make it more passive, I will get a property manager for that one.

I would recommend for you if the property will be close to you, to self manage for a year and see how it goes. But make sure you run your numbers as though you will have a property manager that way when and if you do go to property management, you will be making your expected returns.

Everyone will be different depending on how conservative and safe you want to play it.  The smaller your cash reserves for each property, the higher the chance your investment will go bad if you do experience any hardship.

I personally like to keep about $3k per each of my turnkeys for emergency situations.  

Im not an Indy expert but I do have 3 rentals there.  I have one in Irvington and one in Bates Hendricks.  The other one is in Lawrence.

I like my BH one best because its closer to downtown and I feel like that area has more potential for appreciation growth then Irvington.  I would go BH!

Hey Michael, honestly those returns suck!  I recently bought my 3rd turnkey property and they are all at least 15% cash on cash returns.  Im not familiar with the Florida market though. Mine are mid-west and Im sure that has a lot to do with it.

If i were you, I would look for another provider on your next one and hope for higher returns.

@Account Closed

If you mean why cant the owner of the note refinance the underlying mortgage its because he no longer owns the property.  You cant refinance if your name is not on the title/deed.

If you mean why doesnt the borrower/owner refinance, its probably because they do not qualify for a conventional loan.  That is typically the reason whey they buy via owner finance.

Additional info below taken from questions asked already.

What is the p&i payment required on the note? - P&I is $826.85. Escrow im collecting is $300.01.

Does the lender pay any reoccurring servicing fees to Evergreen? If so, how much? - Yes I pay $12 per month for servicing fees. The payments are all electronic. Owner pays electronically. Services auto deducts the $12 fee and sends me an ACH payment every month. Servicer is Evergreen Note Collection

Does the interest rate adjust? If so, please provide the index or schedule of changes. - The interest rate does NOT adjust. It is a 30 year fixed at 9.1%.

Would like to have the exact balance after the June payment to give the most accurate offer. - As of today, the remaining principal is $93464.12. The June payment has already been paid and applied to this number.

Have the borrowers ever been more than 30 days late on a payment? If so, please explain. - The borrowers have NEVER been more then 30 days late. Its a perfectly performing note since day 1.

Sounds like this house is a rental. Can you provide more lease terms and lease history so I can get a feel for the cash flow? – I only discovered the house was rented out back in January of this year and he recently told me it is rented out until April of 2016. I do not have any other knowledge of the specifics to this as I didn’t think it was in my place to inquire as the lender about his rental business.

I am listing this for a family member.  If you have a serious offer, PM me your contact info and I will have my family member contact you directly.  No low ball offers, this is a good deal with pretty much no risk.

100% Performing note since it originated on 11/03/2006.

Originated via a house sold via Owner Finance.

Property address:
11801 Arrowmound Pass
Del Valle, TX 78617

Built in 2004
1117 Sq Ft
3br/2bath.

house is in great condition

Home Currently worth: $120,000 (Conservative, probably closer to 125-130K)

Based off of current/pending MLS listings in the neighborhood. I dont have access to sold comps but I think this is pretty accurate if not conservative. The house is 12 miles from downtown austin and less then 1 mile away from the Circuit of the Amerias track where they host F1, MotoGP, X Games and music shows. As you already know, Austin is HOT!!

LTV = 78% (based on 120k)

Current Unpaid Principal as of 06/01/2015 right around 94k, will get exact payoff from servicer soon.

Price: $89,500

UPB: 95%. Price is firm.

Payments made: 117  Since 12/01/2006

Interest Rate: 9.10%

Term: 30 year mortgage

Current Mortgage payment: $1126.86

Escrow is included in this loan payment

Note servicer:
Evergreen Note Servicing

Amount owed on underlying mortgage: $78,567
This will be paid off with the sale.

House is currently rented out until 4/30/2016

Current owner is not wanting to refinance. Owner does not want to sell.

All legal note documents were provided by a real estate lawyer in Austin, TX.

Let me know if you need additional information.

@Account Closed

PM sent

I just took 3 minutes to look up that corner in a trulia crime map and here was the most recent incident:

"Shooting/Stabbing. PD o/s of a shooting. 1 male shot & being taken to Presbyterian by PD. No suspect info."

With that being said, there is no way I would ever purchase a turnkey there.  Im curious why would you want to purchase a turnkey in a high crime area when there are so many other places that dont have a high crime rate?  What is it about philly that is making you look there for turnkeys?

As a turnkey purchaser myself, this is one of my strict criteria.  No high crime neighborhoods. 

Where I live is super hot also and there is very little chances of getting cash flow which is why I decided to invest out of state also as of about a year and a half ago.  Ive purchased 3 properties out of state so far and they are great so far.  

Takes a lot of work and research to find good income producing properties out there.  Be very weary about about pulling the trigger with anyone until you are absolutely sure.

I would be more then happy to help you by answering any questions.  I know when I first started it would have made my life a lot easier.