All Forum Posts by: Heather Pelletier

If by being on this forum, I can help one person avoid losing their butt on rentals because they believed the silly rents - mortgage payment nonsense that so many "gurus" preach, then that's worth it to me.

Mike,

You've saved me from making bad offers time and time again as I learn the business. I don't take your words as harsh rather than being honest. I'm not a member of BP to protect my feelings, I'm a member to learn. I appreciate your blunt, to the point, sometimes ruthless comments. Keep em coming!! Thanks for all your knowledge. (Secretly I believe you say these things because deep down you are a very caring man who doens't want to see anyone get hurt. ) I picture you as a big loveable teddy bear:) LOL

Just my 2 cents!!
Thanks again!
Heather

Thanks Taz and Mike,

I appreciate your input. I have every intention of putting every dollar I make into a reserve fund. I have learned from my mistakes and now I am trying to learn from all of you.

" I had a friend about 2 or 3 years ago that had a tenant steal the furnace and sell it for scrap. I know another landlord that had a tenant plug all the drains in the house and turn the water on when she left. I know a professional property manager who had a tenant steal all the kitchen cabinets, sink, and the countertop when the tenant left." Yikes, that's scary stuff Mike. Thank goodness it's far and few between.

Heather :)

The "50% rule" lumps both of these, as well as vacancies, into the "50%".

So does this mean the expenses will be slightly less? Maybe I'll just explain the deal I'm analyzing.

REO asking price 57K
ARV-124K
FMR-1000-12000
Estimated repairs to be able to rent immediately-15K
The house will eventually need a new roof and exterior paint- 15K

We're thinking a fair offer would be 43K but aren't sure becaue we know it will eventually need a roof. What are your thoughts?

Hi Pam,

I made a similar post like this months ago, DEFINATELY read the Dave Ramsey book, it changed my life. That's really all the advice you need.

Good luck to you, you'll be OK. You are willing to work to fix your problem.

Heather

PS: You may qualify for your bank to lower your interest rate based on hardship. It's worth a shot, what do you have to lose?

I think this is a great idea!

Thanks for the clarification guys, I appreciate it!!

Heather :)

I have a question? I understand the 50% rule for the most part but am unclear about what expenses it includes. If you purchase a property and rehab it completely is it safe to assume your expenses will be slightly less because you've added a new roof, heating system, updated electrical, ect? I know tenants can break windows, put holes in walls, ruin appliances but I can't imagine them destroying major things like roofs and heating systems.

Thanks ,
Heather

As far as finding a lender who actually treats a TB excercising their option to buy as a refi, I don't know of anyone who'll still/can do that these days.

Does anyone else agree with this? Is it out of date information? We're new to this but it seemed like a good strategy. (Not to doubt you Dan, I'm just not ready to give up hope yet :)

Heather

Thanks J I appreciate it!

Heather

Thanks Jim,

What percentage do you consider "serious"?