All Forum Posts by: Andrew S.

@Nat C. 

To answer your original question: yes, I do absolutely expect my PM to handle this type of situation.  Now, whether this would trigger additional charges/reimbursement for the PM depends on the PM agreement, but it's a clear expectation.  You may need a new PM 

I just did a couple of these too and what I could get out of them was:

"70% of appraised value after remodel up to (but not exceeding) original purchase price (plus closing costs)"

In my example, I bought at 175K, put in 100K.  It then appraised for 325K.  Although 70% of 325K would have been 227.5K, the max I got out was 100% of the original price - i..e. 175K.

If you want to tap into more equity then you'll need to wait (usually 6-12mo) and re-finance from scratch.  That can be harder than the delayed financing process though.

@Rasheed Hope Well, if you HAVE the funds (say, in your bank account), simply ask for a letter from the bank, or just submit the account statement that shows the available cash.

If you don't have the cash, then you can try a hard money lender and see if they'll issue a letter for you.

@Thomas Weir 

 I have to disagree with the advice that building credit can wait until later.  Filling out a couple of credit card applications is so trivial that there is no reason not to that first, or in parallel with pursuing his first deal.  You are right that building credit in this situation is probably easy, but IT WILL TAKE SOME TIME.  The sooner it''s stated, the sooner the benefits roll in.

Nice work, @Colby Litzenberger 

You should link back to your other post - it's a very instructive story

@Henry Le 

While you may not "need" credit cards for your daily life, you should start building your credit history right away (i.e. TODAY).  Apply for a couple of credit cards (sounds like you have a steady income and it sounds like you are exceptionally savvy with your money. You will have little problem getting your first cards.  Use the cards, but pay them off every month.  A good credit history is a MUST in real estate - doesn't mean things absolutely can't be done without, but they are so much easier if you have credit.

Again, building credit takes some time, so start now. 

@Mike Holmes 

Everyone is different of course, but $2500 a month sounds awfully thin to me for a couple who can't see themselves living in "an area where you can buy 40K houses". Does that mean your wife has income also and perhaps you own your current residence outright already? If so, then you may want to think about the HELOC suggestion made by @Jim

@Jim Sokoloff undefined

 above

Agree with others.  I have a duplex under remodel right now that will probably be ready by Oct15.  I'll definitely look for 8-9 month rents or maybe even 6-7 months (or, for that matter, if someone wants to do 18 months, that's ok too)

Just a word of caution about going "overboard" with adding extra equipment (fire extinguishers, etc) that is not required by code.  Be aware that whatever you provide, you will then be responsible for making sure it is, and stays in working order.  Fire extinguishers for example do have to be checked for proper function regularly.  If you provide one and then it fails to operate in an emergency, then you are potentially much worse off than you would have been without providing it in the first place.

I may be missing something but it sounds like you didn't terminate the agreement until three days after time expired?  If so, and if you didn't get an amendment extending or modifying the original terms, then I agree with @Richard C.  that your EM is very likely gone (all of it).