All Forum Posts by: Eric Wilkinson

6 months and counting. Waiting to clear up a title issue. Finally the paperwork has come back today that will clear a lien, so hopefully it will close in the next couple of weeks.

Get educated on how property taxes work in Michigan.  More specifically, how property taxes apply for when the owner does not live in the home and how the taxes change when a change of ownership occurs.

If you plan on investing in Washtenaw county, taxes can be a significant expense when it comes to renting.  If you don’t account for it properly in your due diligence, then you could easily see whatever cash flow you were expecting evaporate the next year when you get your tax bill.

Has anyone used Offrs.com before? I am wondering if anyone has seen good results by marketing according to their ratings.

@Robert Palladino

If you are looking for cash to buy a flip property or one you are going to BRRRR, then you are unlikely to find cheaper short term funding.

I got a HELOC in a couple of weeks for just the cost of an appraisal. The rate is at the WSJ Prime rate (currently 4.75). I can draw on this line of credit anytime with no fees and only pay interest for what I have drawn. This gives a lot of flexibility and allows you to buy a property like it was a cash purchase which is quicker and with a whole lot less paperwork.

Hard money options are going to have a higher rate and more upfront fees.

Thanks for the feedback.  

I have a home under contract that has a potential title issue. The seller had borrowed money from his now deceased mother for the home. He has lived in the home over 30 years and said that he paid it off years ago. My title company is now trying to track down all his siblings to sign affidavits to clear any claims on the property.

How worried should I be about this? I know this is what title companies and title insurance is there for, but this is the first time I have run across something like this.

@Satyam Mistry

I use Ally Bank to hold security deposits and a reserve account. They recently released a new feature that lets you create “buckets” within an account. You can then separate and divide up security deposits by property within an account.

@Nicholas Standford

I consider whether the house has AC or not when deciding to replace the windows. If their condition is questionable or they are near the end of their life, a tenant opening and closing them everyday in the summer is going to speed that along. I don’t want to deal with the calls or the headache when they do eventually break.

Your town/state rules may also factor into the equation. Windows can be viewed as a security issue. As others have mentioned, the windows can be a focal point for lead concerns. Replacing the windows can solve these issues. If you are dealing with rental inspections or Section 8 Inspections, you may just want to avoid the hassle.

I agree with the others on this post. I have not met a tenant that has said “wow, I am going to pay $50 more a month because of these new windows.”

@Eric Wilkinson

It is a long term hold for me. We just finished getting it done with a cosmetic rehab and put it out to rent yesterday. It met our goals for cash flow. All of the major items are new or only a few years old which is what appealed to me since it should keep my capex and repairs lower than what I generally budget for.

I have read your other posts. I have been doing DMM for only the last 9 months, so I don't have a ton of data to look on for ROI. I had only spent about $400 between list purchases and postage at the time I got this under contract. I am focused on a relatively small geographic area.

I just closed this week on a SFR that I got from mailing an out of state landlord. I agree with the importance of follow up comments. My initial letter to the seller came back as a return to sender. I did some more digging and found his current address. Mailed the letter again and got the call and the deal.