All Forum Posts by: Hal Cranmer

Thought I would throw this out to see what everyone does. When you go to your rental properties and inspect them periodically, what do you look for. I do the following:

1. Look at the general condition of each room - any damage to walls or excessively dirty/stained floors and carpeting.
2. Turn on all faucets and look under the sinks to make sure no leaks
3. Flush the toilets to make sure they work and don't leak.
4. Change furnace filter/smoke detector/CO detector batteries as necessary.

Any other ideas? Thanks.

I just received a good offer on one of my duplexes that I have accepted. I have owned the duplex for a little over a year and would like to do a 1031 exchange with the proceeds (don't get me started on all the reasons I don't want to pay taxes :oops: ). The closing is in January, but I want to find a good deal on another duplex or multifamily as soon as possible to make it eligible. Anyone have any ideas on how I could locate a motivated seller (bank or homeowner) quickly? I really did not think the duplex would sell that quick.

Alternatively, are there any realtors or wholesalers out there who might have something for me in Minneapolis? Thanks for any help.

Mike,

I have excellent credit and can put 20% down. I just have 5 properties. It was not a local bank but they held 3 of my mortgages and did not sell them in the market. Now they have gone belly up just as I agreed to an offer on selling my 6th property (that is why I say I have 5 properties now). I want to 1031 the money into another property, but I need to find a bank that will lend on more than 4. Since I started this thread, I have talked to my mortgage broker and he said he found another bank that can do it. But thanks to everyone for all the advice and encouragement!

Kevin,

Commercial deals make me nervous - especially in this economy. Of course I am always interested in a good deal. Any hints on how to research commercial deals more or how to find them? Thanks.

Curt,

Are you saying I would have to show I have enough to pay the mortgages on all my properties on my own for six month's. I could do this but it would have to be with funds from my IRA or 401k. Would that work? What are the interest rates like?

I have just received an offer on one of my duplexes (I own 5) and hopefully will sell it soon. I would like to 1031 the profits into another duplex, but with the 5 properties I would already own after the sale (I have a SFH too) most banks will not lend to me. I have excellent credit and can afford to put 20% down. I had a bank that would lend for up to 10 properties, but I just got an email saying they went belly up. Does anyone out there know of banks that will lend on up to 10 properties - or at least more than 4? Thanks in advance.

I closed on an REO duplex in July and have been fighting the bank and selling agent to pay the delinquent water bill since. At the closing, the title agency called the water company (run by the city) who gave them an estimate of the bill at $800. The water company said that someone did call in June to have the meter read, but did not meet the rep from the water company at the duplex to let them in. When I started working on the place I had the company come out and turn the water on. At that time they noticed that the meter had frozen the previous winter after a pipe burst. They sent me a notification about the reading at the end of August saying the bill was $2,400 minus the $800 already paid so there was $1,600 left.

Here is where it gets interesting. The title company says that the REO purchase agreement has a clause saying that if I don't report any other bills within 20 days of close, they do not have to pay. The water bill was obviously incurred before I owned the property and I did not get notification of the correct amount until the end of August - 2 months later.

My question is - am I screwed and have to pay this? Or can I fight it? Can I go after the title company for just getting an estimate and not an exact amount? What is my best course of action. The water bill stays with the property by statute. I am also having my lawyer looking over the PA. Any advice would be much appreciated. Thanks.

Oh I also looked into making a claim with my title insurance but the policy does not cover water.

Sorry - I really did not mean to make this thread a debate on the cost of cleaning pet urine - I just used that as an example.

I wanted to try to keep it on the topic of what to look for in a house that might drive other buyers away but would be easy to fix. The structural issues and the boarded up windows are great examples. Any others?

As I go around looking for houses to buy, it would be great to look for these kind of things. Hopefully it would help others as well.

Hi. I know many people look for distressed properties in order to fix up and flip. But many of the problems with properties end up costing more than they are worth. So I thought it might be good to get investor opinions on what are the most profitable 'problems' with a property. In other words, what are the problems that drive most buyers away (and thus help lower the price) but are easy fixes that can result in big profits? One of my favorites is cat urine. Yeah you have to rip up the carpet, bleach the floor and seal with Kilz, but this only costs $100 or so + flooring. However, if you have to rip up the flooring anyway, the smell of cat urine normally turns most buyers off.
I should know. I had a renter with a cat who ruined my carpets. Before I took out the carpets and treated the floor, most people who saw the place turned right around and walked out. After sealing everything up, it rented in 24 hours. Anyone else have some good 'problems' to look for? Thanks.

Anyone have any experience investing in tax deeds or liens in Minnesota, particularly around the twin cities area? I have some rental properties in the area, but wanted to branch out to tax liens and/or deeds? I'm just learning...Thanks.