All Forum Posts by: Jim C.

Is the market so hot now, that I should be selling some of my "Pigs"??

Example:

• 0k is owed on the home (Paid $26k cash in 2009)
• Mortgage: $0 
• Recent appraisal: $92k
  • Comps for the area are between $90-$120k
  • Taxes: $1365
  • Insurance: $600
• Rental comps: $800-$825
• Purchased in 2009: $26k Cash
• Will be needing a new furnace.
• This is a 2 Bedroom House in a "B" area- 2 bedroom houses seem more difficult to rent in my area. Last tenant was there for 8 years! Has been listed for rent for 45 days with 3 applications, but all rejected due to credit/evictions. I'm getting tired of having open houses only to have deadbeats show up (or not at all, had 20 confirmations, only 2-3 actually show up)
• If I apply the 2% rule to the 92k appraisal, I should be getting $1840 a month, at 1% rule,I should be getting $920, but it seems market will only accept around $800.

Any input would be greatly appreciated!

Thanks!!!

@Will Green- I believe your tax adviser is referring to manufactured homes, not modular homes. Modular homes are permanently affixed to a foundation and are treated like any other "stick-built" home. Modular homes are insured and taxed like any other stick built home.

@Chad Springs- Find a local (or even not so local- if none are local) real estate investors club and go to a few. You will find all the help you need (ask for help, there are lots of investors that that I'm sure would be glad to help you get started!)

How about a tenant that comes home drunk off her *SS and drives straight thru your garage??? Then claims someone else was driving? Not to mention that she had to be rescued from FD becuz garage collapsed on her car and she couldn't get out! At least she destroyed her grill in the process.....

Bought this as an REO in 2009.

@John Carroll- Welcome to BP! I've been investing in NWI for 18 years. Lots of duplex are abound in CP (Especially around the square). I picked one up last year and rehabbed it. Believe it, there is a ton of rentals/ duplexes throughout the CP area. If you need advice, feel free to reach out to me!

In my area, I have the utilities setup to switch over when a tenant moves out AND calls to have the utilities shut off.. BUT, if the tenant never calls (which most don't if they simply disappear) they become delinquent by the utility company and then they come out and physically disconnect the electric and Gas REGARDLESS OF THE LANDLORD STATUS INFORMING THEM TO SWITCH OVER. This has happened several times to me over the years.... If a tenant 'disappears', it's usually because of financial issues and that they have already been served disconnect notices by the utility company and once power and heat get turned off, they figure that the game is over and move out, leaving a mess and broken pipes behind (especially in the freezing winter temps).  My utility company informs me that to only find out if utils are being disconnected (since they are in tenants name), tenants would have to give utility authorization to release information to me (by having tenant sign a form). Most tenants don't want to do this.

@Laurence V.- is the letter from the therapist a local therapist, or some web based ESA letter? I just had this happen to me (but with a letter from a web based company) and wound up evicting (but they were 2 large pitbull ESAs LOL!

@Luke H.- Careful! Don't promise anything until you see the inside of the house! If he's been there 10 years and did all the repairs himself.... Be fearful. If he is willing to allow you inside to inspect, then I'd do that and go from there to see how much damage there is.... But, now that he's wants you to Evict him... Give him what he wants! As I tell all my tenants that I evict.... "It's nothing personal.... Just Business!"

@Rubin Thomas- Are they currently renting? I would go to their listed 'current' residence and see what shape it's in.... That's what your house will look like in a month or less...... Stop by and ask them if you can 'inspect' their current residence. I'm sure it will speak "Volumes". Anytime I have an applicant with pets, I ALWAYS visit their current place to see what shape it's in... If they don't let me in, then .... NO!. If the yard is trashed with feces or tore up... PASS! You will learn very quickly how responsible the owners are.