All Forum Posts by: Michael Shadow

Thanks evrryone that was the info I was looking for.

You need to make sure the building is/or will be in compliance with local laws. You may want to check with zoning on the issue of converting the garage to living space. There shouldn't be an issue with it but the last thing you want is zoning breathing down your back. You also want to make sure permits have been pulled and that you pull permits when doing any renovations that involve adding living space, electrical, hvac, or plumbing work. If something isn't done right and starts a fire and the insurance company finds out a permit wasn't pulled they can refuse to pay the insurance claim.

I would remove the garage door and build a new exterior and interior wall and insulate it. It will cost less than you might think and it will pay for itself in energy savings especially if you are in an area that has high heating/cooling loads.

Does anyone know how the banks are handling owner financing these days? I'm looking at a property that the owner will finance and I wanted to see what the feel was for getting a traditional mortgage from a bank 6 months - 1 year after we buy the property. Would we even have to wait that long?

Thanks,

-Michael

Originally posted by Michael Zuber:

In my market a 3/1 Apartment used to go for $900 a month and a 3/1 House would go for $995.

Given the soft Rental market I am seeing 3/1 houses go for $850. To me this means a 3/1 Apartment would have to go for 700-750. (I don't own any 3/1 apartments currently)

Thus I suspect the 3/1 apartment will be the softest market on a % basis. Said another way the 3/1 Apartment will have the largest drop

Just my guess

I don't see that happening at all. Most people that rent are renters because of poor financial habits. Not all are, but most are. Other situations are people that are not ready to settle down yea, still single, going to college, or whatever the case is. It's not always in the best interest of a single person with a good education/job/financial discipline to get a house because he/she has not found their spouse yet/finished college, etc and buying a house could mean having to sell it again two years down the road if they get married or land a great job in another state.

Sell everything. Haha, with a new country government perhaps there won't be any real estate taxes, or capital gains taxes, or probate taxes. Ohh... Opps sorry I think I fell asleep there and started to dream.

Mike, do you have a link to the video?

Thanks,

-Michael

It depends on your state laws. In my state they are only liable for the rent while the unit is vacant and the landlord/manager is required to do their best to fill the unit as quickly as possible.

-Michael

I think we're going to start seeing a lot of doubling up, people moving in with each other to save on costs. Because of this I think that the demand for 1 bedroom apts will drop and 2 and 3's will start to rise. I also think that it will be pushing people from their top end condos and they will be moving into more affordable apartments. In essence I think that some of it is good for landlords because you will be getting a higher quality tenant in a lower apartment.

Because of the doubling up vacancies will go up which is the scariest part of it. However if you can manage your properties right and keep them filled it'll be a great time to start scooping up properties from people that don't manager their properties as well at deep discount prices. Then when we get out of this mess you will be positioned to ride the inflation wave when it comes.

Hello Paul, A quick welcome to BiggerPockets from another PA Investor. Is Langhorne your home town or is that where you wish to settle down in when you're done with school? When you're done and start playing professionally do you know what town you will be ending up in? These are key things you will want to know before purchasing your first property. That being said now is the best time to be learning all you can about REI. Welcome to the site.

-Michael

Greetings John, Welcome to BiggerPockets. Are loans starting to flow again in Sacramento?

-Michael