All Forum Posts by: David Cruice

@Virginia Jones running some quick and dirty back-of-the-envelope numbers on what you've provided above, you're coming out at $2,448 NOI/month. Times that by 12 and divide that by the seller's asking price and you come out with a 10,68% cap rate, which is very good. However, it today's hot RE market that sounds too good to be true. If you haven't done so already, ask the seller to provide you with his trailing-12 P&L statement and his P&Ls for 2016 and 2017. Be VERY diligent in your due diligence and make sure all his numbers (especially is expenses because sellers love to hide their expenses) make sense. Also, if you buy the property, your property taxes are going to increase because of the new, higher sale price, so go to the Property Appraiser's website and see what their MIL rate (usually a combination of both the county and city), Finally, run your numbers through the BP Rental Property Calculator. If all pans out, it looks like you've got a very good deal on your hands (especially with the seller financing).

@Keyoka Smith , I have a lot of experience acquiring properties through tax liens (which become deeds after the 12-month redemption period expires) in South Carolina (Beaufort and Horry counties).  Since you "are new to this", I would recommend that you walk away from this deal.  By purchasing this house, you are taking the seller's problem (unquieted title) and making it your own.  You will not be able to get title insurance on your property, won't be able to get a mortgage on it, and you won't be able to sell it to 90% of the buyers out there.

@Jim K. ignore my previous post, I missed the part where you said, "I have space for it in the existing panel".  Could have saved myself a lot of typing!  :-)  No harm though if you want to run 6g wire for that extra peace of mind.

@Mike McCarthy   You are correct in everything you are stating, but I believe the manufacturer is recommending only 8g wire because the kiln only draws a maximum of 33.6 amps.  The difference is subtle in that one is load amps (for the wire gauge) and the other is capacity (the size of the breaker) x 80% rule.  That's why the manufacturer is recommending a 50 amp breaker.  A 45 amp breaker (x 80% = 34 amps) would just be sufficient, but it would be cutting it close.  Plus, most stores prefer to carry 40 and 50 amp breakers; not so much the 45 amp ones.

@Jim K. , if you're following the manufacturer's instructions as outlined above, then your installation will be ok.  However, the only thing you have left out of your post is if you are sure you have the extra capacity (with respect to amps) in your panel to run an additional 33+ amps.  If you have a new panel in a moderately sized house, you're most probably have a 150 amp panel.  Most breaker boxes are 100, 150, or 200 amps.  If your panel is a 150 or 200 amp version and has lots of unused slots for breakers, you've most probably got enough capacity for the new kiln.  The quickest way to confirm though is to use an amp meter to measure the amps being drawn through each of the phases (120v lines entering the panel, usually at the top or bottom of the panel) when running the typical amount of appliances all at the same time, i.e. stove, washer, dryer, water heater, and AC should do it.  Add the amount of amp draw on each line together, then subtract that from the size of the panel and that will give you your spare capacity to accommodate the kiln.  Let me know if you have any questions.  

@Chad Moore , can you restate your question.  It's difficult to understand what you're asking.  Are you asking if you can sell the note with a lower interest rate of 5% to 10%?  Thx.  

@Mike Moe Since they have paid their rent through the 30th they have every right to stay right up until 11:59 p.m. if they so wish.  However, it sounds like they're just being awkward, though.  Just tell your new tenants that you'll need several hours on the 1st to clean the unit and get it ready for them.  Try to get a commitment from your cleaning crew that they'll be there by 8 a.m. on the 1st.  It doesn't really matter if you can't take care of the "minor" issues before they move in.  You can always do it over the proceeding couple of days.  I doubt they'll be too bothered.

@Etahn Smith  You can get  a PM company or you can self-manage.  Most PM companies don't do a good job.  It's not their money they're dealing with.  If your 20-40 units are in the same building/complex, see if you can hire an on-site manager or, possibly, one of your residents.  However, it has to be someone you can trust implicitly, but make sure you reconcile all the books every month pay the bills personally.

@Jiten Patel, have you asked the former owner what was the agreement.  Don't worry about having a "good" relationship with your tenant.  It's business; not personal.  If it is not in the lease, tell him he is responsible for taking care of the lawn maintenance.  If he says no way, tell him you'll pay to have it cut and charge him back for it.  Make sure you drive by the property often, since I have no doubt the tenant will only cut the lawn once in a blue moon.  Good luck!

@John Boychuk, The is no post-bid inspection contingency. You win the auction you own the property. If you back out you lose your earnest money. Hubzu is a very reputable auction platform run by Ocwen, an Orlando-based clearing house for all government-backed mortgages that have been foreclosed upon, i.e FHA, VA, etc.

@Padric Lynch thx for sharing. Greatly appreciated!