All Forum Posts by: Dennis Cosgrave

You need to contact the seller prior to the expiration of the inspection period. If you don't you might have bigger problems. You definitely need to get a survey done and have a real estate attorney handle this deal going forward. 

Ernesto Carozza, I never had a property manager in the proper sense of the word. Once I purchased larger apartment buildings, I had live-in superintendents who took care of the day to day stuff. I always maintained financial control and I personally screened new tenants. My properties were always well maintained so the turnover was very low. When tenants moved out, I would take care of the refresh/rehab myself. 

For what it is worth, I started off investing in triplexes. It was a great way to learn how to manage properties and tenants. I eventually had 5 of them and it became a little much to manage them all. I eventually sold them all and invested the proceeds in much larger apartment buildings. As previous posters have pointed out, it all depends on how handy you are, how much free time you have, and what your predisposition to being a landlord is.

Colleges have become indoctrination centres. When I went to college, yes, it was worth every penny but it was 1/10 of the cost of a college education today. I would certainly not waste $40k per year today. Even STEM education is becoming politicized. I agree with Ryan K. Go to a college, get a degree in marketing or finance. That will serve you well later on.

The more significant long term trend is WFH. I would be more inclined to design homes that facilitate this trend. That would include a separate work space, and if possible, a separate outside entrance to that workspace. In addition, I would install high speed internet capability, additional electrical outlets, especially in the workspace. I think COVID is a short term trend and will likely fall out of favor in a relatively short period of time. WFH is here to stay in one form or another. 

Given the current political climate, if you close on the deal, do you have sufficient reserves to carry the property if neither tenant pays rent? How long will the eviction freeze continue? If the seller is willing to sell for $100k under market value, that would be a red flag for me. I agree with previous posters; the seller has no legal right to evict the tenants to satisfy a clause in a sales contract. 

I have never regretted walking away from a deal. Sure, there were situations where the market value rose significantly in a short period of time, but that is what markets do. Until we have an accurate and reliable method of forecasting the market, you have to just chalk it up to luck. On the other hand, I have closed on deals that I wish I had walked away from. The good news is that those bad deals were great learning experiences. Everything happens for a reason. 

I agree with Jenni Utz. Once you begin, you have to be consistent in creating new content. You will probably not see any significant growth in traffic for at least 6 months, unless you promote the channel heavily. Don't get discouraged if you don't see results right away. You might want to give away a free book in exchange for subscribing.

You did not say how long you lived on the property prior to renting it out. The number of years you lived on the property is important in order to calculate the tax liability exclusion when you finally sell the property. The following is an article written in February this year which explains it in more detail. 

https://www.cpajournal.com/2020/02/05/how-the-loophole-in-irc-section-121-can-benefit-homeowners/

First rule of business is, the rate of return should reflect the level of risk. When the economy is good and the market is normal or hot, then you can accept a lower ROI. However, in uncertain times (such as now), you need to build in a higher ROI to compensate for the higher risks.