All Forum Posts by: Andrew S.

Thanks BeBe. No, my particular case was not a REO/Short Sale, but this is good information to keep in mind. Thanks! @BeBe Cheng 

In my opinion, Ignore functions have no value in a well-moderated forum (such as this one).  I really can't fathom what makes the management team think this will make a Pro upgrade more attractive.  It's a feature that perhaps a handful of people would use if to were free.  At least once the novelty has worn off.

@Bruce Kozak 

I do agree with you that this is (or should be) the tenant's responsibility.  That said, I have paid for enough $100 service calls that ultimately came down to replacement of the $5 flapper that I have decided to just buy a bulk quantity and replace ALL flappers in ALL my rental properties on a regular basis as preventive maintenance (I do the same with air filters for the HVAC because we all know how good the average tenants are at replacing those...).  While the quality of these flappers has improved over time, people will toss those bleach tablets into the tank which really chew them up.  Yes, I could try to pin this on the tenant and make them pay for the service call, but it's not worth the hassle.

I bought a property in March 2014 (normal closing here in NC - via attorney).  Today, I get an overdue notice from the County for some transfer taxes in 2013 (i.e. way before I owned it). Of course, the county takes the position that they will collect from whoever owns the property now.  I forwarded the bill to the closing attorney who agreed fairly quickly to pay it.  So, all is well for me, but this did make me wonder as to who is really legally on the hook in this type of situation.  My assumption is/was that it's the attorney's job to search the tax records at closing and make sure everything is settled.  This may be why he so readily agreed to pick up the tab.  However, just made me wonder who would really be left holding the bag if he bailed on me.  Would title insurance pick this up?

 I don;t know about Geico, but some carriers (State Farm for example) make a distinction between "personal" and "commercial" umbrella.  They will have a limit on the number of properties you can cover with "personal" umbrella - Sate Farm limit's at 5, if I recall.  After that you will have to take out a "commercial" umbrella, which, as you may have guessed is a bit more expensive.  Still not excessive, but it IS more expensive than "personal".

 I don't think there is a credible way to use those types of clauses, regardless of how you communicate them - personally, I would not take you seriously in the first place, if you had a clause "subject to approval by my partner" in the contract.  This clearly signals that you have no stake in the deal, intend to tie up the property at the seller's expense, and are ready to ditch them at any time and for any reason.  Maybe that works for a desperate or very naive seller, but I have my doubts.

Thanks Albert for correcting that oversight of mine!  It's a crucial detail obviously

For a regular refi you'll need to season at least 6 months, more likely 12 months. However, you should consider "delayed financing exemption". This is a Fannie Mae program that let's you finance the deal within the first 6 months after purchase (assuming you used cash, HML, etc). You can get 65-70% of appraised value (after renovation) up to the original purchase price (plus closing costs). So, in your case, the max you could get out would be around 34K, assuming it actually appraises where you think it does. I realize that this may not be enough cash-out for you to bother and moreover, it may be hard to find a lender that will do such a small loan. Nevertheless, delayed financing is attractive in some cases.

 For a flip, if you put in significant improvements, the assessor WILL take that into account.  However, the lender can and will ask for proof of those improvements (see other discussions on this board where the fliipper had to submit actual receipts to the prospective buyer's lender to justify the value added).  That's separate from the seasoning requirement for cash-out refi though

@Ben Stout 

 Definitely sounds like you have found your niche - congratulations on that!

I don't really think there are too many people here who tell you NOT to take a cash flowing deal if you can find one.  However, in many parts of the country, the scenario you are describing for Pensacola is not realistically achievable unless you are willing to operate in true war zones.  The debate over what is better, cash-flow or appreciation, depends entirely on personal preference, so I would consider the argument moot.  What everyone will be able to agree on though is that the best scenario is where you have BOTH (as you do in your case with your $30k example).  So the quick answer for you would be: sell your 100k dead weight and buy three more of your $30k ones (assuming they are available).

It would be interesting to me to hear more detail of your story on the $100K house.  It's of course possible that you stumbled onto a "lemon", but the biggest learning I take out of your story is actually something that folks like @Jon Holdman here keep emphasizing (and rightly so): make sure you have enough reserves to weather significant unexpected expenses.  Then you will always have to option to correct course by disposing of what doesn't work the way you like.