All Forum Posts by: Chase Gochnauer

I use a PM. Roughly 12% once you factor monthly PM plus lease fees.

I use them for two reasons. 

1. I'm too nice. I know this is a weakness of mine, so hiring a PM helps to ensure protocol is being followed and I don't end up losing $$ by cutting too many breaks.

2. Vacancy between tenants. I'm busy, prior to a PM, I'd let a house go empty, spend a week or two working on it to clean it up, and then list it for lease again. Others are more on top of this than I was I'm sure, but with a PM, the place is re-leased before the previous tenant moves out. On my most recent one, there was only 2 days of no payment of rent between tenants. This savings of a couple of weeks vacancy alone paid for their lease fee.

3. Discipline. Because I'm very busy with my day-to-day business, I was not good at proper move-in forms, move-out forms, lead based paint forms, etc. Having a PM helps ensure these protocols are followed, which will save you down the line if you have a deposit dispute, etc.

If you have extra time(showings and paperwork), are somewhat detail oriented(paperwork and screening) and can be stern when necessary(no/late pays), then do it yourself. If you have problems with one or more of these, hire a PM.

Yes these would become regular REO homes that will be listed on the MLS generally. Also Xome.com, hudhomestore.com, homepath.com, homesteps.com, auction.com, etc. (houses are here in addition to the MLS)

They aren't around anymore. The guy wasn't exactly bad, but it was a guy that didn't have many houses and closed shop to get a job somewhere. We had signed all agreements and such and he'd notified tenants, then closed up. Very frustrating.

The only other thing to consider, is your current interest rate versus market rate. If you could refi and save .5%-1% on your rate, it might be worth cashing out. 

But as Chris said, having that line of credit is nice. I have a LOC on about 5 or 6 of my properties @ 4.25% interest only, that I use to purchase additional properties, then I refinance those new properties to pay off the LOC. Having a ton of money in your bank account is just costing interest.

I recently started using KLC out of Windsor Heights. No downside with exception of cost so far. I had a person cheaper first, but they were flaky. You get what you pay for.

Agreed with John. Actual proof of funds will do wonders. Hand them a proof of cash funds and a comp or two of one that sold around where you need to be.

Option 1: Rent it until you have enough equity to sell it.
Option 2: Sell it for a loss
Option 3: See if SFH conversion would get you more rent and/or resale value

Those are the only options I see.

I've bought a few from the sheriff's auction. You just have to have one built. Two of the houses I bought at the sheriff sale, I found the abstract in the house.

First thing, call around to your local abstract companies, I give it a 50-75% chance they will be able to track it down for you(stored at an abstract company, or attorney's office). At the very least, they will be able to tell you the name of the person that last received it(likely the homeowner).

If none of that works, I'd recommend having an abstract built at your cost, have a title opinion done by your attorney. This is what my attorney has always recommended when buying properties from auction.com or other similar places. You're going to have to get it built sooner or later you might as well do it now.

Xome.com and hubzu.com, will build the abstracts.

I'd say it's quite odd rents haven't increased in 12 years there. If this is the case, then your property value hasn't appreciated either. And considering you've pulled out equity you appear to be in an upside down situation most likely.

Short of selling it at a loss I'm not sure of another great solution. I'm sure there's opportunity to sell to someone on contract or something but considering how the numbers look, I don't think they would last and you'd be back to square 1.

Somehow you paid $326k for a property that was maybe only worth $180k-$200k at the top end in my area. I just paid $133k for a duplex that grosses $1525/mo. When you say you bought it for $326k, did you truly finance that amount or was this some sort of inflated purchase price and seller kicked back $$ at closing to cover your downpayment?

The good ones here don't last long after the OO period expires. I've had good luck with smaller banks and credit unions.