All Forum Posts by: John McDermon

@anishtolia yes, thiese are going to be cash deals.

I'm working on a deal with a turn-key vendor in Indianapolis, IN. They have their own crew/team and I'm sure everything is going to be fine. But, as we used to say in foreign policy "trust but verify." So I'd like to connect with an unaligned broker/appraiser/property manager who could give me a second opinion about both the renovated value and potential rents. I'm also going to need an inspector, who doesn't work with the turnkey vendor, who I could use to verify the completed scope of work, when the time comes. Working from out-of-state I need to rely on the generosity of the Bigger Pockets forum members to connect me with reliable local people. Your help will be greatly appreciated.

I forgot to mention that I've been waiting until their lease is up to list the home. I know the tenant is willing to stay and it will be month-to-month while the house is on the market. I will talk to the tenant and see what their interest is. I hadn't thought of some of the options mentioned -- thanks!

I'm looking to sell my inherited childhood home in SoCal. I have a tenant who appears to be taking good care of the home, but he isn't going to be able to buy it. I've read in he past about people giving their tenants some kind of incentive to help make the sale easier -- keep the house clean, cooperate with the realtor for showings, etc. The rent is $3,000/mo. What would a typical amount be and do you give it as a discount off rent or cash on the side. Any advice will be greatly appreciated.

@Troy Fisher -- thanks for the tip about the meetups. I understood attending REI meetups for local networking, but I completely overlooked contacting the organizer as a remote resource.

Chris Tan seems like we're in agreement on the independence issue. As for TK vs DIY, it comes down to time and priorities. I'm still a full time W-2 employee with a 90 min commute (each way), so finding time to DIY would be a big problem. When I retire my wife and I plan to travel for extended periods (months) each year, so the mostly passive nature of the TK relationship appeals to me. Thanks for asking and causing me to think again about the goals and the "why" behind all this.

@Chris T. -- I considered asking for referrals for independent inspectors from the TK company, but I questioned how independent they would really be (in my mind -- not out loud). Since I'm not in the area, I wouldn't have any way of knowing if the people referred are otherwise connected to the TK company. Obviously the TK company is doing a lot more business in the area, 40-50 SFH/month, than little old me. So there could be some natural bias towards making the deal go smoothly if the referral comes from the TK company.

That said, so far the TK company has been very receptive to my desire for independent inspection/appraisal, so no red-flags yet.

Maybe I'm just being paranoid -- first deal jitters, etc.

@Jason Bott -- thanks for the perspective on looking at the differential in risk and not the total risk.

@James Mc Ree -- insuring for 90% replacement value is an angle I hadn't considered. Definitely, something to take a look at once I'm up and running.

@Jassem A. $10k -- really? You must be working with a larger cash reserve than I'm planning.

@Vic French You're right, the Insurance Companies get you coming and going. For every increment in deductible the insurance quotes go down about $100/yr -- so, for example, going from 500 to 1000 deductible after 5 years of  zero claims, I'd be money ahead. So, how reasonable is it to expect 5 years with no insurance claims in a SF rental? 

I'm looking into buying properties out of state through a turn-key company. Once I've got a couple of deals under my belt and an established relationship with trust built on past performance I don't think I'll need to do this, but until then, I'd like to get an independent inspection and appraisal of a property before I'm too committed. So I have a couple of questions:

1) how would I go about finding a reputable inspector and/or appraiser out of state?

2) would I really need both?

3) how/when in the process would I have these inspections performed?

Can I make my offer contingent on favorable inspections and appraisal to allow me to lock up the deal quickly (assuming there's competition for the property) and still be protected if everything wasn't up to snuff.

Assuming the seller accepts the contingency terms of my offer, if the inspection and appraisal aren't good, then I should be able to get out of the deal without loosing any earnest money -- right?

I realize I'm putting myself at a disadvantage against a competing buyer willing to offer without contingencies. Am I being to retentive about this?
Any help in this are will be greatly appreciated.

Thanks In Advance,

--John