All Forum Posts by: David Krulac

You should be looking at Chicago REIA groups where there are investors and money.

Personally, I'm not a wait on the sidelines type of person, so maybe what I would do does fit everybody. But here goes, I would not wait, I just bought 3 brand new houses and got 4.75% fixed for 30 years and 4.25% fixed for 10 years then variable for thenext 20 years. And these were on investor, non-owner occupied mortgages. If I was in your shoes I would buy a place, single familt, 2,3, or 4 untis, and occupy one and use my VA 100% financed zero down entitlement. BTW, thanks for your service. After doing that and moving to the new place, and renting out the old place I would get a second mortgage or HELOC on the old place and get about $45,000 in cash and maybe buy another place. And keeping the existing 3.25% mortgage on the old place. IMHO, I think its a great time to buy, besides the 3 new construction, I also bought 2 other properties and have an offer on a sixth property right now, crossing my fingers. One of the resons that I say don't wait is that while others sit on the sidelines that means less competition from other buyers and when interest rates do decline two other things will happen: 1. more buyers will come out of the woodwork increasing buyer competition AND 2. Prices will rise as demand exceeds supply and you will have to pay more. I'm always a buyer, but I still believe that now is a buying opportunity and I am putting my money where my mouth is.

Come to PA, DE, TN, VA, NC, SC, GA, and other places; where Section 8 Fair Market Rents increased.

We have had tenants stay for over 30 years and have current tenants who have stayed 25 years and several more than 10 years.  At many of our properties the tenants are the first and only tenant thta we;ve had at that location.  Vacancy rates are rising in the market place and now is a good time to retain tenants and prevent costly vacancies.

https://www.parealtors.org/blog/house-renters-renting-longer... 

One of the factors that I look at for listed on market properties is Days on Market (DOM) and properties that have had price reductions, sometimes multiple price reductions.  A couple mopnths ago I saw a property for sale that had been on market for almost six months and had a price reduction.  It had been appraised before listing at $378,000, listed at that price then reduced to $340,000.  After back and forth offers and declines was able to settle on a final price of $250,000.  We did put in $20,000 in cosmetics, paint, floor coverings and minor repairs. I think that it is worth the original appraisal of $378,000 if not more, and have seen some good comps in the $400,000 to $425,000 range. Very pleased. 

On Zillow there are 120 four bedroom rentals listed in Princeton, Texas. Most are in the same price range as yours, $2,100 to $2,400.  Since there are so many, you need to distinguish your place from the other 120 listed. If you can't distinguish your rental from others on features/amenities, then you can always distinguish your place on price.

I bought 3 brand new houses in February 2025 from a builder that were listed in the MLS. The new home builders have lots of inventory for sale and sales are slow, so they are offering incentives. In this case they were offering below market interest rates in connection with a lender. Was able to get 4.75% interest fixed for 30 years and 4.25% interest fixed for 10 years and variable thereafter.

The rules vary so much that even in the same states there are different rules at different counties.  Some won't accept cash. Some won't accept personal or business checks.  Some require that bidders rergister weeks in advance of the sale and must be vetted before being allowed to bid.  About half the states are Lien styates and the other half are deed states.  Some states have redemption for the owners losing their property.  In some states there is no redemption.  In some states all liens transfer to the high bidder at the sale.  At other states all liens, mortgages and judgements are wiped out. 

I have bought hundreds of properties and have read every book that I could find on the subject. Because there are so many different varients, its difficult for any book to cover the subject completely.  And in addition the rules are constantly changing.  Covid caused even more changes, one sale was in a parking garage, another was outside in a park, and another only admitted 10 bidders at a time. If you weren't one of the ten, you could not bid on the ten properties offered at that session.  Every ten property sessions, ten new bidders were allowed in the room.  Some sales are done online, otheres in person only and some others are both online and inpersonal simutaneously.

I've written here on BP many times on Tax Sales.  It is the most hazardous way to buy real estate. From the list 30 days before the sale, I've found that about 90% do NOT make it to the sale for various reasons. Its hard to do and many people don't do the necessary work to succeed.  Here are my rules for the sales:

1. Know the rules for each sale that you participate.

2. Do your due diligence, including title search, code violation, and zoning rules.

3. I want my own eyes on the property, no online substitution.   

In Pennsylvania, there is a requirement to have a "plain language lease".  I have never had a lease challenged for plain language, but suppose it might come up in an eviction hearing if the tenant is represented by a free legal aid attorney.  In PA, the tenant may waive notices in the lease, so all of our leases have a clause to that effect.  And our lease is an ever changing document as laws change or circumstances dictate.  One time upon departing a tenant left 22 missing or burned out light bulbs in a 3 br house.  The next time we had a new tenant we added a light bulb replacement clause, saying that when they leave all light bulbs must be of appropriate wattage and in working condition.  At a house we jusat bought, we went for a final walk through before the settlment and none of the lights worked.  I commented at settlement, that they must have already contacted the electric company and had the service taken out of their name.  They laughed and said no, they removed all of "their" light bulbs. 

Depends on the unit that we are renting. Basic apartment say 1 BR, we usually supply refrigerator and range, and nothing else.  Luxury condo or luxury house we supply more, dishwasher, frig, range, and sometimes washer and dryers.  In between medium houses might not have a frig, nor washer and dryer.  We never supply window air conditioners, most all places have central air. 

I like when tenants bring their own frig, washer and dryer, the more heavy items they bring, the longer they stay.  "Can I bring my grand piano?" Absolutely!  We have had tenants stay in some cases over 30 years, and currently have a 25 year tenant.  My experience is that lots of house tenants, particularily moving from another house have appliances like frig, washer and dryer and like to bring their own.  If we have a place where the former owner or a former tenant has left frig, washer and dryer, we tell the tenants that we will NOT repair or replace those units, but they are free to use if they wish, and we will remove if they don't want them.  One time a dishwasher broke and was unrepairable, I aksed the tenant whether they wanted me to fix/replace the dishwasher OR reduce the rent by $10 a month?  They chose the later. Sometimes we have bought used appliances from a store, wqhich caries used, scratch and dent models.  Often times they are half new price, have a 1 year warranty, free delivery and free take away old appliance.