All Forum Posts by: Andrew S.

You need to take a look at the property first and find out what condition it is in. Then do a repair estimate (if any) and a comp analysis and determine ARV. THEN consider calculating your 1% rule, or whatever your target is. For all you know, this is a $5000 dollar property and he is "renting" it to his nephew for $1100....

I agree with your plan for building a relationship with the seller - this may be a great opportunity.  Just make sure it's worth the effort.

@Padma Mody  - I don't see any need to report to section 8.  Leave it alone.  If the tenant moved out and you get the keys the next day or two, just move on and focus on your remodeling work.

For what it's worth, I don't think name calling is warranted here....

 Seriously, you would have let the tree drop on the house on purpose and exposed your tenants to risk of life and limb?  And the only reason why you didn't is that reported it to the PM? I hope you are kidding!

 Eric, I don't know your particular market, so you may well be below going rate in your neck of the woods, but I don't think your fees are that different from many others.  You are basically at 12.5% of gross rent (a little more for lower end rentals, a little less for higher end rentals), and that's pretty standard, at least in our area.  I do like your system because it is simpler and a bit more predictable, and in addition, it should incentivize you as the PM to find long-term tenants (which is crucial for optimal cashflow).   

@Mel Rosario 

You should not make a high offer and then go back and try to re-negotiate for everything that's wrong with the house.  I know some buyers operate that way but it's frowned upon by most reputable investors.  Take known repairs (based on your assessment and a thorough inspection) into account when making the offer.  Re-negotiation is for hidden defects in my opinion.

Unless you mean "earnest money deposit" by higher down payment, the buyer isn't really going to care how much money you put down (say, for your bank loan).  So you won;t get a lower price just because you have a larger down payment.  Now, if you can offer all-cash, then you will have a negotiation lever.

Offer full price only if it makes sense. If the numbers don't work, you are better off walking away than making a bad deal.

@Dawn Anastasi 

"I've been to 2 bed bug demonstrations and they definitely have dogs that are trained to sniff out bedbugs. There are services (at least around here) where you can have them come out to your property before you get a tenant, and give you an independent 3rd party certification that you do not have bedbugs. So if bedbugs come up in the future, there's no way the tenants can claim the bugs were already there."

Thanks Dawn A. - yes, this is exactly why I was asking!  I would seriously consider bringing in the canine every time a new tenant moves in, if that is available at a reasonable price.

 Thanks Dawn!  I sent you PM.  Do you really mean to say the exterminator has a dog on staff to check for bedbugs?

I have a 1200sqf 3/1 ranch with a mild bedbug infestation. I'm trying to figure out the most effective approach (chemical vs heat vs cold vs fumigation, etc). Mt specific question relates to heat treatments. Does anyone here have actual experience with heat treatments? What is the approximate cost for a small SFH? How effective is a single treatment - or is it advisable to plan on a "double-hit"?

Comments much appreciated!

I may have missed something, but isn't it at least POSSIBLE that the seller will cut you the $2000 check anyway (I may be naive, but I assure you, I would!)?  There ARE still people left with enough principles and integrity that they will honor a deal even if legally they don't absolutely have to.  Can't hurt to ask

@Account Closed 

I'm going to disagree with most of the others - I think you may reduce the applicant pool significantly and that could be expensive, especially at this time of the year (when rentals are slow in many parts of the country).  First impressions matter.

Also, personally, I don't like the blue and I suspect, I'd like the sage and pink rooms even less...  Obviously, a matter of personal taste but a neutral color will, on average, get the place rented more quickly.  Sounds like you are a pro and can do this quickly and cheaply.  Why take the chance?