All Forum Posts by: Andrew S.

 I agree with Brandon - this could be tricky.  Only you can judge your particular situation, but as long as the property is in your grandmother's name, there is a possibility that she will change her mind and the will (or someone else with an interest convinces her to do so).  Therefore, there is some risk involved with paying the 8 grand and then 400/year.  Of course, this sounds like such a great deal that it may be worth taking the chance for a (relatively) modest upfront investment.  

I like Brandon's suggestion: figure out what you want to do with the property and buy it outright from your grandmother (she will probably give you a great deal).  Then she can enjoy some extra money and you can still be her heir of whatever is left over.  Now, you are in control and can start developing the property right away.

Again, I don;t know what your particular situation is, but it may be possible that your grandmother lives anotehr 10 or 20 years, and a lot can change in a couple of decades....

Check your state laws - I'm not from WA, but seem to recall that Washington levies a transfer tax that makes double-closings very unattractive (have to pay the tax twice) there.  

Also, if it is already listed, most potential buyers will already be aware of it and don't need you as the middle-man who tacks on an extra fee, so I don't think this will be easy to wholesale

I'm not sure I fully understand what is in your 1050 number. I hope that already includes the HOA fee? Are you putting down 20% (typical for rental mortgages)? If so, a 3.3% 30y note should give PITI of much less than that

Jesse,

Are you sure your lender knows that this is a rental property (no owner-occupied)? Just wondering as that rate is amazing. Also, I assume you have checked the bylaws of the HOA to make sure you will be able to rent the property (some have restrictions).

Finally, do you believe that there is upside potential on the rent?  Make sure you double-check your numbers.  Depending on what your goals are, you may be ok, but your numbers would definitely not work for me - I think you are likely going to see a negative cashflow.

Definitely go ahead with the background check (plus refs form the previous landlord).  If the pot possession is really the only problem, I'd definitely consider renting to him

Yes, @Ned Cary is right - you can absolutely deduct those expenses.  No different from the mortgage, insurance, taxes, etc  that you have to keep paying while the property is empty

 I assume you mean some sort of cutoff time for excessive noise (loud partying, lawnmowers on Sunday mornings, etc), not an ACTUAL curfew, right?  

I don't see how a real curfew would be enforceable (or legal, for that matter), nor why you'd want to impose one.

These things vary state by state, but it sounds like you are holding the better cards on this one - he signed a lease that requires 60 days notice, and you have his October rent in hand.  I think chances are excellent that you can keep the money even if he takes you to court.

That said, is the few hundred dollars worth your friendship?  Perhaps today (as you are still upset with him) it is, but think longer term - then decide.

Doing business with friends and relatives always adds another level of risk

 No

Different auctions have different rules, but typically, you have to present your cash immediately, or at least within a few hours (maybe 24h, if you are lucky) to complete the deal.  In other words, you will not have time to process your pre-approved mortgage through a lender (which will take 30-60 days)..