All Forum Posts by: Jonathan Holmes

1. Most offers will include a clause for backing out after the inspection. As long as they pay for it who cares when they do it. If something does come up and they try to use it for leverage in the negotiation you can always say no and often enough people try to renegotiate after the inspections when under contract anyway. It is odd but nothing I would concern myself with.

2. I don't know how it is in your county but in mine the septic/Board of Health is notorious for this kind of low level corruption. I hope to some day see the people take the power back and toss the bums out, as they say, but my response has been to only buy properties with sewer. In your situation I would ask around and look for the most honest company and then use them for both inspections and repairs.

First thing I think you need to do is take a few deep breaths and be thankful she is gone. Next make sure the locks were changed don't trust her to have turned in all the keys. Finally it sounds like your deposit return was done by the book. Keep your photos and documentation and don't worry about it. Don't call the police (unless she comes back) they have enough to deal with. Finally, assuming you did not inherit this tenant take a step back and ask yourself what you should have done differently, where there any red flags, and is my screening process in need of any tweaking so I don't ever have to deal with this nonsense again?

Bad tenants happen, don't let the next one stress you out as much as this one has. Otherwise you life is going to harder than it needs to be. Best of luck to you on your next one!

In my opinion you need to look for someone experienced in that market who is willing to be your boots on the ground. Sure talk to real estate agents and property managers but realistically both of those groups have a reason to push you to buy. They want your business. If on the other hand you had an experienced investor who new the area and was will to use you as a money partner or take a private loan from you I think you would have someone who could offer better advice and give you an education.

You should be able to find one willing to. I’d expect a higher interest rate. They also won’t go as high a percentage of equity. I think owner occupied 90 or even 95% isn’t unheard of but I’d bet 70 to 75% would be the max in an investment property.

I definitely wouldn’t rent to a vegan.

This may be considered a wrap around loan. I’ve never done it but I have heard it talked about. My main concern is when title transfers there is a chance the bank will call the old loan due. They have the right but may or may not do it. I would consider a lease option safer for your seller to be honest.

A turnkey with an FHA loan makes me skeptical it will cash flow. The big downside of the FHA loan is the PMI you have to pay every month. Without a specific property online reserves will be hard to guess but 3-5k a unit is a good place to start.

Yep call every local bank in your area and ask. Every single one!

Finding a deal is always the hardest part. The reason I am currently hacking a duplex and not a tri or quad is a lack of options. I might try a hand written letter to a small very targeted group of owners. I get a lot more responses from longer term owners than short term. Most of these will be noes or prices so high to make it not a deal. You have to decide how patient a person you are all the while not letting yourself descend in analysis paralysis. If you’re really looking to ease in you cannot beat the owner occupied duplex. In terms of simplicity, availability and cost. I’m sorry if it seems like I’m going around and around with options. That is one of the best and worst things about real estate.

Your caution is wise. I know the first time I listed my duplex for rent I had a ridiculous fear that not one person would call. The truth was that I had to start screening to voicemail to manage all the interest and my market is fairly flat. You may consider that security comes from other places than just a paid off loan. If the rent you makes covers the mortgage then as long as you have a tenant you effectively have no mortgage. Another possibility is to look into triplexes or four units. Depending on your market these shouldn’t be out of your reach and may offer and increased income while allowing you to keep more control of the property. You can purchase these with the same owner occupant loans as a duplex.