All Forum Posts by: Dale K Poyser

I agree with @Tracy Streich it really depends on what the market rents are and what the value of the property is now and what it will be after the conversion.

If the seller is giving you a discount to remove the eviction clause that could be a red flag. Friend or not you could be inheriting a big problem if the tenant decides they are a package deal and don't need to move. Also, whether the reason is covid related or not it seems most courts are not hearing ANY evictions in most states. So you could have a hard time getting the tenant out legally.

If rents are 2k per month and the tenant stays there another year, the 10k was not really a bargain. You need some kind of assurances, or look for another deal.

Also, the cost of the inspection should be considered the cost of doing business. That inspection can unveil so many things wrong with a property and save you ALOT of money.

My .02

i thought with FHA loans the pmi was for the life of the loan?

if you can do  both the lump sum and the purchase of another property I would hold on to that lump sum amount and 

1 - consider picking up two additional properties 

2 - have that lump sum available in case of emergencies. I think cash will be king in the next couple months and having the capital on hand will allow you to take advantage of more opportunities. 

a good place to start 

enter the address in zillow to get a rough estimate.  you could also have a real estate agent pull comps (sales comparison data) for you.

Also an aspiring landlord - The issues you bring up sound simple but also sound like they could be expensive to the landlord. There is nothing wrong with hearing the landlord out and going over the contract. If the contract explicitly says no cleaning then you are kinda screwed and probably want to talk to an attorney. Also, when you meet, if you want stuff documented you can send a follow up email saying "thanks for meeting, per our discussion, we agreed to x and x and x by y date"

Tell your landlord you have a lot going on as you are sure they do as well so having emails is for your sanity (even if it so you can track what he is doing and not doing) and peace of mind.

I think worse case scenario if you have a strong case you should be able to break the lease contract and move out. It really boils down to what the contract says tho.

you could try a lease option contract - give him a down payment for the contract and then you have a couple years to buy the property at a certain price. To sweeten the deal you could also offer slightly more than what he is asking for.

If you keep the utilities in your name then your "renter" could be considered a roommate. If you are paying for this as a personal residence kinda thing Im pretty sure you're only obligated for a year or so.

You can consult a lawyer or alternatively talk to some property managers and ask what your options are. A property manager was the one that mentioned the utility thing to me. 

If the occupant is in the process of leaving, why offer them cash for keys?

 What type of neighborhoods were/are those? B-Class C-Class? 

cash flow is cash flow. if you have equity why dont you tap into some of that for a downpayment.  if you make a plan to pay that house off that should improve your cashflow immensely. 

you could also use a combination of the rents and equity for the repairs.

It's not a lot but you are making money and getting the tax benefits as well. better than selling, paying agent fees and just sitting on the sidelines with the cash.  

my .02