All Forum Posts by: David Krulac

My favorite book is "Landlording" by Leigh Robinson

We have had the same situation both at an existing house and we even built a brand new house for a group home for mentally challenged adults.  They are the best possible tenants.  They are funded through Federal funds administered though the local county housing office.  They always pay there rent on time or before.  they take care of all utilities, and mowing and snow removal.  They also have a handyman on staff and take care of minor maintenance.  We have had multiple such houses and the tenants have stayed for 25 years at each of our homes. There is staff there 24/7/365.  They pay the same rent no matter how many residents live there.  Each resident has their own private bedroom and there is one bedroom for staff.  They are perfect tenants.  

We bought 3 brand new houses this year from a builder who had below market financing lined up, when the development started, and we got 4.75% fixed for 30 years and 4.25% fixed for 10 years, then variable.  We've gotten financing from probate deals as well as people retiring and moving out of state or to a home.

not crazy, but need to look at zoning restrictions in the area you want to invest. Some Zoning Rules have minimum square foot required, or have limit of one unit per lot. Also mobile homes and modular homes are both manufactured homes but are vastly different. Mobile homes are built to FHA standards and come on a steel frame with wheels, axle and hitch. Modular homes are built to BOCA standards, the same as stick built houses, and come on a wood frame, and on a trailer. The home itself has no wheels, axle or hitch. It has been my experience that mobiles, even double wides, resell for less, and rent for less than modulars. In our developments we have permitted modulars but not mobiles. One buyer built a cape cod modular, that once built looked exactly like a stick built. At another development 17 two story townhouses with basements were all modulars trucked to the site from a factory. (where by the way they built both modulars and mobiles). Buyers have also built 4 box L shaped modulars at our developments, as well as two story modular houses.

@Jay Hinrichs  At one Tax Sale where you have to pay same day, there was a bidder with a zip lock bag, yes transparent, filled with cash walking around.  I wondered how he walked along the streets like that?  At another sale a bidder had a large manilla, at least not transparent, overflowing with cash.  At yet another Tax Sale, one bidder seemed to be high bid on every property he bid on, and ended up spending $1.7 million at the sale. I can assure you that was not me.

@Jay Hinrichs  agree, some courthouse sales are 100% due at the sale.  Some others are as low as 10% day of sale and remainder in 2 or 3 weeks.  Other non-government auctions are typically 10% day of auction and the remainder in 30 to 45 days.

none of the above. If you find a deal finding the money is easy. We've done over 1,000 deals for our own inventory, only 25% came from the MLS. Which means 75% did not come from the listed properties of the MLS. We used, Sheriff Sales, Tax Sales, FSBO, Probate, Auctions, word of mouth, and any other method I could think of.

The first 11 properties were all 100% financed in one way or another, because I did not have any money and had just started a new entry level low paying job.

would not change what kind of property that I would look for: single family detached house, 3 bedrooms, central air, 2+ baths, 2 car garage, built since year 2000.

We've also used IRA and 401K funds to Buy and Hold property.