All Forum Posts by: Debra Grumbach

It's possible the tenant can apply for federal aid as their income has been affected by the hurricane. I'm sure your mortgage still needs to be paid. Not to sound too callous but any property not damaged is going to be going for a premium very soon. Do what you want but I wouldn't necessarily dismiss the notion of eviction.

Go Pro and use the rental calculator. Anything in the calculator that you don't know or understand, research it. Then make sure you get all those questions answered. That's a start. I'm also assuming this property is listed in MLS. Get yourself a buyer agent who does these types of purchases. They should help by KNOWING the questions to ask that you haven't figured out yet.

Ya know.....

I have to say that it's understandable that people go through hard times. My husband and I know that FIRST HAND. But we have NEVER lied on an application. FOR ANYTHING. We had a negative financial situation and we have learned from it. We have been straight up since day 1 with perspective landlords and loan officers when we were applying to rent or applying for a loan. It really hasn't hurt us much. We have taken serious corrective steps (not the ones "advised by the pros") and are in a much better situation. 

I guess they think if they don't "admit it" they aren't "guilty."

If you are selling the house that has the HELOC and your sale proceeds cover all liens, the liens will be paid through the closing at closing to give clear title to the next owner and any "excess $" you get to pocket. (I think this is where you are) If sales proceeds fall short you bring certified funds check to closing for the shortfall.

If you are selling a different property than the one with the HELOC and you get a "check" from the sale of the other property, you deposit your check and then pay off the HELOC if you desire.

Congrats!

I think you are trying to make the numbers "work" because you want it.

With $130K invested, using your numbers, you are cash flowing about $479/mo. That's more like a trickle given that investment/downpayment. Your ROI is less than 4.5% annually, if all your numbers work. Personally I would want a 10-12% ROI which means you need about $250/door/month.

You state you think the $9K is high for taxes but I would disagree with it being a suburb of Boston. I lived in MA 25 years and sold real estate there for 5. There is NO benefit for them to list the taxes higher than they actually are. Call the town clerk where this property is if you want to double check. Easy enough.

Your estimate of $600/yr for snow removal is TINY unless you are doing it yourself but if you get a busy snow year, you will end up doing snow removal for about $2/hr plus the cost of gas with a budget of $600. Last year may have cost $600 hiring out but ask what it cost them in 2014-15 winter.

If you have someone property manage this you will likely be negative fast. I always schedule in a PM fee. What happens to your "cash flow" if something changes and you have to pay a PM? In your case, you go zero or negative. Don't you deserve to get paid to manage your own property?

Depending on the condition of the property you may be able to reduce CapEx to 10%. Sounds like maybe they put a bunch of money into the property this past year to sell it? Maybe that means you have a longer expected time frame for the next major repair? But if that's not the case and they are just bandaging things and spending 14% - RUN cause it will bite the next owner in the butt.

Unless you know for CERTAIN that you can raise the rents ASAP, don't factor that in. MA is VERY tenant friendly. If the tenants are on a lease you can't raise their rent until the lease is over. If you are going to go from $1400/mo to $16/$1700 - will you lose your tenant and have to find a new one? How long will it take to get a new one in place? Is it a "hot area?" Why aren't rents already higher if it is a good area? I am always skeptical when seller's or their agents state "rents could be higher." My question always is - then why aren't they? 

If you don't mind a little friendly advice - divorce your emotion from this analysis. Stop TRYING to make the numbers "work" and just see if they actually do. I think if you do that you will either find a way to get this price way down (or at least try to) or walk away from this "deal."

Good luck.

It's not unheard of to go from one house straight into another. Close on your sale and purchase the same day. Is that not possible for you? Possible to do a lease back while you find a home to purchase? You could also look for a short term rental or even try an "extended stay" hotel. Plenty of options. 

If the landlord is okay with you talking with the tenant then go for it. If you are offering "cash for keys" I would say offer it before you go to contract on the house but make the tenant understand they don't get the cash until they and ALL their stuff is out and you have the keys in your hand. You could also tell them they have to vacate due to new ownership and that you will be renovating and they need to move and just leave it at that. No cash.

Good luck.

No. The storm isn't even over. There is tons of flooding and you can't fly into the area and you can't drive into Houston from any direction due to flooding of the highways. If you have a property manager here, tell them to go out and get you an assessment after the storm is over but it will likely be days. If you don't have a PM, call your tenants yourself and ask them how they are and how the property is. My friends from Houston got out today and are staying with us and had no flooding where they were but there is more rain to come. This will not be "over" for many days. The water will take a while to succeed and some streets literally fell apart. 

Bwahahahaha 

No

Look, I have some crypto. I know people who are financially set for life because they bought Botcoin when it was selling for pennies. Crypto is so small a part of the financial world that it has zero effect on the current housing market. And where are you that you are seeing a decline in the housing market because it's BOOMING here.