All Forum Posts by: Jeff Brower

Is this guy your property manager or a 'part time marketing manager' like you say? If he is your property manager then my advice would be different. If he is just creating ads for your rentals 5 hours a week then I don't see how you could be affected.

@Anthony Rosa There is way more to this than just replacing the panel. The knob and tube is the wiring which runs throughout the entire home. A new panel can be hooked up to the old wiring. The cost would include all new wiring, drywall repair, etc.

None of his personal life is your business, I would stay out of it.

I think this is safe as you don't have a lot properties with zero equity. This is only your second home and you will be living in it. You can take that down payment cash and invest it in a vehicle which will net you more than the 4% rate you would be saving by putting 20% down. Rare is the case when it is possible to even get a zero down loan. I'd say go for it, just dont overpay based on emotion or gather too many properties with little equity or you could eventually get into trouble.

The two year deal is mainly for debt to income qualification purposes. If you need to use the rent from your unit to qualify for the next home, then most banks want to see two years of history on your taxes. Some banks will simply use 75% of appraised rent, so you have to ask around. Nothing is stopping your from purchasing another rental conventionally right after you buy your duplex with FHA, so long as you can qualify.

At my brokerage we are allowed 1 transaction per year with no commission split if it is for personal use. Investments they need their normal cut. 

Even though the event may be taxable and the brokerage may take their piece, inflating the purchase price by 3% and then getting that $ back in the form of cash at close is wise as the total will be rolled into a 30 year note at historic low interest rates. This is vs taking no commission and having the purchase price be 3% lower. I think about this a lot and it makes sense to me to always pay yourself vs taking the money off of the purchase price total. I also advocate for asking for the seller to pay some closing costs and inflating the purchase price by that amount if allowed. The less cash out of pocket the better, at least in my current situation.

The only thing you can do is make the property presentable and you can generate a list of your own comps to hand them. Make a list of improvements that support your claim and give copies of leases if you have them.

@Jon DeBlauw I am with KW Greater Cleveland Northeast based out of Mentor. I agree with what James said, most are okay with you just doing your own thing if you are paying the fees. I do about 3/4 deals a year right now and have had no problems. 

What Russell said :) A lot of grey areas here when it comes to fiduciary duty. I would not get caught up in it just for commission on a 50k property. If you are going to do the flipping, pass on the representation portion.

It comes down to interest rates and your projected return on any new projects. If you have a low interest rate it makes no sense to pay it off early. If your rate is 5% but you can make a 10% return on the money you would use to pay off the loan then you are shooting yourself in the foot.