All Forum Posts by: Josh C.

Literally the purpose of earnest money. If you were the seller you’d want to keep it. Have your agent draft the paperwork and the seller keeps the em as damages.

If caught lying and the seller ends of selling for less or has other real damages you are liable for those plus attorney fees. 1/10 would not recommend.

Lesson learned and move on.

100k in cash? That’s nuts. I’d probably take it, but I’d meet at a bank and have the bank verify it’s good. Or have her get it in bit coin and transfer it to you so you know it’s not funny money. We see this often in $600 rentals. Never in 4K rentals.

Be careful. But there are some people who keep everything in cash and gold. So it’s not impossible.

Maybe cali tenants are different than us mid-westerns. But with 14k gross rent potential and 11k fixed assets costs pre-vacancy and pre (minor maintenance as unit are new) is a money loser for sure. I’d ask to be bought out in a heart beat. Out here you can spend that much and get a 30 unit building with 25-30k a month in rent. I understand the weather is nice out there, but just can’t get over rental market and how it’s justified. Especially in what likely may be higher end of the market for cali.

Good luck.

Doesn’t add up. Post the listing on here and we can give you feed back.

How’s it vented? If it’s a short run or just another vent issue a backdraft can knock them out over and over again. Once had a double and they went out all the time. Replaced those and the new kept going out. Adding another 10’ to the stack and boom never had a problem again.

Household income of 10-12k a month? Seems tight honestly for that mortgage payment. Even if she was able to figure out how to get the 400k being house poor is no way to live and I wouldn’t recommend my newly single friend spend such a large percentage of their income on housing. Dave Ramsey 25-30% of gross income on living. Once she throws in utilities and maintenance/expensive hoa probably might be over 50%.

But if that’s what she is gonna do anyway 401k withdrawal will likely get the deal done, if a bank will even give her a mortgage on the home. Considering the income she should have 400k in retirement.

But again someone with that income and still bad credit should probably not set themselves up for failure being house poor. Plus early withdrawal is a bad decision. But people gonna do what people do.

When you say “inside unit” what do you mean? The coil or the whole furnace and coil? If you are getting a steal of a deal for the furnace (thing inside that blows air and gets hot) and outdoor condenser. They should pretty much always be replacing the coil (this is inside but sits usually right on top of the furnace and looks like a car radiator) when they replace the ac unit. Most units getting replaced our R22 and being replaced with 410a so the coil shouldn’t be reused and usually the lineset is getting replacing too unless buried in concrete.

Just make sure you know what you are actually getting. I highly doubt it’s everything. 5k is just the new standard in pricing for new outdoor condenser and coil and everything is so expensive these days.

Good luck

New question. Is it moral for politicians and local groups to routinely vote no against denser housing? The people in big cities complaining of housing costs still vote to make building so hard. That’s immoral in my opinion.

My local historic society complained that there aren’t enough low income people and few minorities living in the neighborhood then immediately voted that I had to use cedar siding and wood windows to match the old ways adding $80k to my budget. So of course we have to charge 2k a month in rent where only rich people can live. Lol. That’s the underlining issue which would actually make a difference. Not more regulation on what people do with their currently property. Less regulation on what people do with their land would actually move the needle.

I think pulling a heloc is fine for a down payment and I’ve definitely done that. However spending 2MM on something that cash flows $50-$100 is insane. You are asking for negative cash flows issues.

However, you sound rich with a 2MM+ primary and maybe you just want to park your money in a local hard asset which is totally fine if that’s what you want.

But if you goal is lots of cash flow and lots of doors this property does not fit that plan.

It can be really bad. D class can be bought 50, put in 40, and then sold 12 Months later for 35. Happens all the time. C class is the lowest I’d say for non locals.

The main issue D class areas only attract D class renters. Nurses and doctors don’t move into these neighborhoods regardless of how HGTV it looks. (As Clayton use to say) Really hard to manage and really hard to move in someone who will pay their rent on time and respect the property. Crime and rough tenants are no joke. They don’t give a rip about your spreadsheet.