All Forum Posts by: Jonathan Holmes

Are you attempting to create a system where you collect a deposit from your buyer that you keep regardless of if the title comes back clean? If I’m reading your post correctly that’s bad business and sounds like a good way for your buyer to feel taken advantage of and refuse to work with you/ bad mouth you. On the other hand if you mean just enough to cover the title search so it doesn’t come out of your pocket should the deal fall through, again I would call that bad business and advise against it. The buyers are your customers and having a good relationship with a hand full of big buyers will make you successful. Those repeat customers come from treating them well and ensuring they come out of the deal feeling good.

Definitely need to look into the exterminator bill I can’t imagine what is so wrong with the property that would require a monthly exterminator visit. It sounds like you need to get those empty units filled. You may need to get a bit more hands out with this thing for a while. If you’re using the same PM that the previous owners were I would look for a new one. They should be inspecting the units to prevent them from getting destroyed. First decide whether you want to buckle down and get through this rough patch, set up appropriate systems to handle screening, placing tenants and dig yourself out of this hole. Otherwise you can cut and run. If you don’t believe you can make this place perform then it’s time to cut your losses.

Look up the due on sale clause your mortgage will almost certainly have it. This move will technically allow the bank to trigger this clause but supposedly they rarely do. I’m not sure I would make that bet personally.

If you were willing to move I would suggest a house hack in a more affordable area. Minus that I would say keep saving and look into switching to a more profitable career. 20k a year is not much of an income I. Ohio let along the Big Apple. The fact that you have 15k saved on that salary is a good sign. Start looking for an area that you would like to invest and figure out home much you need to save for the 20-30% down you will need depending on whether you buy single family, multifamily or commercial. I would look for cheaper nice areas that are with in a two hour drive that may give you an area you could some day afford to invest in.

It’s fairly common for me to be asked what I’m willing to pay over the the phone. I usually say that’s I need to take a look at it to really make a determination. I then will list all the potential things that may affect the price and ask what they would like to get out of it. That gives me a starting point and often will tell me if we are just way to far apart.

Probably yes but what else are you doing at the moment? If you have no other deals on the line go and check it out for the learning experience. Try to figure out what is wrong with the place. My money would be on it needing major work. Maybe updates to the roof, electric, plumbing or hvac. Things that can cost a ton but be passed over in a picture. You can have a wonderful looking rental unit that has knob and tube wiring, asbestos siding and other things that will cost a ton down the road. You never know though you may just have got lucky!

You likely have what is called an easement. Meaning the fourplex has a right to continue existing where it is. Generally the only issue you might run into is if you have to rebuild at some point.

Some banks do this as a way to build a relationship with a borrower and to bring in extra money. I received 250 dollars off closing costs once by opening a checking account and went a head and used that account to hold rent deposits from that purchase. I once read a story off BP were a guy was told he MUST open a checking account to close a mortgage by a community bank.

Go ahead there is no reason to even tell your current CPA. You could call up another CPA with good references tell them your situation and ask to pose your questions.

I purchased a duplex with an FHA loan and 3.5% down. You need to ask your lender what’s up and then go to a different lender.