All Forum Posts by: Jonathan R McLaughlin

Short-term seller second? 

at 7 deals falling apart I think you have to face you have a flawed model and/or are off base about what constitutes a real problem.

 Good points above especially about the roof. That's a simple fix when needed. Just write the check.

Especially at long distance I would walk away from anything remotely questionable on the foundation front' without making an offer. 

A bit long on the payback but add in any value increase to the property from doing it, including its increased attractiveness to condo conversion down the line, immediately better cap rate, etc...and it could be worth it.  Also, water prices aren't going down. Price seems high but no data there.

Certainly a better use than paying taxes if you have the cash. 

And are they likely to ban such changes in the future?

quick question(s): how realistic is it that you will stay in this primary house for a substantial period of time like 10 years? Would the house make a decent rental property?

If its a decent potential rental as an SF I would consider staying on the heavy pay down path until it would be nicely positively cash flowing if you moved into another tax advantaged primary. No need to take it to zero. Then take stock and see. 

Paying off debt at 7% is a pretty decent return

You only have one commitment, the other one is still negotiating so thats not a completed/accepted tenancy

you may have a good case for "gross" negligence here which should supersede a lot of verbiage thats likely in your contract with your PM. 

@Komal Sekhon I don't want to discount the risk inherent in investing, but why are you worried about prices declining if interest rates go down? 

Usually quite the opposite happens, certainly you saw that in the most recent run-up as low interest rates subsidized significant price run-ups 

@James Hamling is absolutely freakin right about capex and its 'hidden' costs to cash flow. Not sure what your actual expenses for that will be.

However...you mentioned the home is trashed. If the pictures are accurate depictions of the current condition, you don't have a problem. A cleaning and paint touch up looks like its all thats needed from what you presented. I don't see how you get 10K of repairs on that.

I know these are old so maybe its grim? But if this is trashed to you then definitely sell. 

definitely get them to give notice to quit. Some chance this is confusion over the sale and upcoming change of where rent should go on which could be on either party. 

negotiate a discount off the price or see if you can have them escrow 3-6 months of rent if you want to go forward. Not for nothing, but this is his problem until she refuses to pay you, sale or no sale ATEOTD you really don't care if the seller doesn't get his money. 

But if she is a problem, what are the odds she turns into a good citizen for an out of state landlord? Is it a good enough deal to put up with the long distance headache?

You can do everything but convert—draw up the plans, do the docs etc.