All Forum Posts by: Justin Larese

I would be cautious of any home that low, you are probably looking at a worn out slum lord sloppy seconds. The rent numbers are probably true, filled with people who cannot pass other landlord criterias and have no choice where they rent, but the house is probably borderline condemnable. I walked into a 55k triplex with drop ceilings stained and falling down, rats fighting to get off sticky traps, no HVAC or separate utilities, and the back foundation dropped so much the floor buckled. However it was fully rented pulling in $1400 rent with long term tenants. 

You could perform a walk through of how to prevent pipes from freezing on property and have them sign an addendum stating they have been informed and assume responsibility if pipes freeze within reason. Just a thought.

If it is stated in the lease as one of their responsibilities. However, if it is not stated as their responsibility it could be argued that they assumed you would handle covering outdoor spigots. If you did not advise them of what was needed to prevent pipes from freezing and they were not blatantly negligent like turning the heat off to house then that is on you since the incident is considered natural disaster. Another example is it wont be their fault if the house has gutters and leaves clog them up and water backs up into the roof because it was not stated they were responsible, or if the property has a fire place and the house burns down because the chimney was not clean sweep by them or you before use because it was not designated responsibility. Every state has different laws so you could check. You could also inform them that you plan to take it out of their deposit and see if they fight you on it. Replace with plex, has ability to give some expansion without cracking like PVC or copper. Sorry about your situation.

Investment Info:

Single-family residence private money loan investment.

Purchase price: $55,000
Cash invested: $5,000
Sale price: $68,000

Used an equity loan from another property to purchase this one. Being out of state purchasing with a conventional loan would not be approved because there was a lack of income history for 2 months within state. Was able to live in this new property for free since my first home's rent was enough to cover the original mortgage plus the equity loan taken out. Was able to force equity and save money for two years before selling property to reinvest funds.

What made you interested in investing in this type of deal?

Was looking to move for work and try out a different area but did not want to pay rent.

How did you find this deal and how did you negotiate it?

Had my real estate agent perform a video walk through for me since I was out of state and could not physically be there. Allowed me to see properties at my leisure from my phone. The cash from equity made for a quick closing.

How did you finance this deal?

Equity loan from first primary home. Forced equity and had appraised.

How did you add value to the deal?

knocked down a wall to make larger and more functional living room, remodeled galley kitchen with laminate counter-tops and tile. Screened in back porch.

What was the outcome?

Forced equity to the home, could have made more but took a cash deal to move on quickly. Saw the potential in a property and nailed the remodel.

Lessons learned? Challenges?

Its stressful moving across the country and trying to personally manage an out of state rental without a PM. Learned the importance of having a good team to manage aspects that I cannot due to distances. Having a trusted Realtor goes a long way in real estate. Learning different state's building codes such as roof sheathing thicknesses. Learned about MS bugs. Also learning that a Mississippi tornado siren sounds similar as a shift change siren on the Virginia docks, or a curfew siren for Ohio.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Amanda Hayden, Desoto County wizard

Investment Info:

Single-family residence private money loan investment.

Purchase price: $55,000
Cash invested: $5,000
Sale price: $68,000

Used an equity loan from another property to purchase this one. Being out of state purchasing with a conventional loan would not be approved because there was a lack of income history for 2 months within state. Was able to live in this new property for free since my first home's rent was enough to cover the original mortgage plus the equity loan taken out. Was able to force equity and save money for two years before selling property to reinvest funds. This property allowed me to be an out of state Landlord, use a creative way to purchase home, sharpened my forced equity skills, and learn a different state's real estate market.

What made you interested in investing in this type of deal?

Was looking to move for work and try out a different area but did not want to pay rent.

How did you find this deal and how did you negotiate it?

Had my real estate agent perform a video walk through for me since I was out of state and could not physically be there. Allowed me to see properties at my leisure from my phone. The cash from equity made for a quick closing.

How did you finance this deal?

Equity loan from first primary home. Forced equity and had appraised.

How did you add value to the deal?

knocked down a wall to make larger and more functional living room, remodeled galley kitchen with laminate counter-tops and tile. Screened in back porch.

What was the outcome?

Forced equity to the home, could have made more but took a cash deal to move on quickly. Saw the potential in a property and nailed the remodel.

Lessons learned? Challenges?

Its stressful moving across the country and trying to personally manage an out of state rental without a PM. Learned the importance of having a good team to manage aspects that I cannot due to distances. Having a trusted Realtor goes a long way in real estate. Learning different state's building codes such as roof sheathing thicknesses. Learned about MS bugs. Also learning that a Mississippi tornado siren sounds similar as a shift change siren on the Virginia docks, or a curfew siren for Ohio.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Amanda Hayden, Desoto County wizard

I have had an issue with a realtor before with similar regards. I was searching for properties in Memphis TN a few years back while residing in Virginia and I had a specific budget i wanted to stay within. Had a nice list of properties picked out and traveled to Memphis to physically inspect them.  However, the realtor kept showing homes that were way out of my price range. After the third property being out of my price range and although a nice property we had a come to Jesus meeting. The realtor was avoiding the properties I had on the list because of how bad the crime was in neighborhoods and how often HVAC condensers were stolen or broken into, and she was trying to look out for my best interest. Though I respected her decision I informed her I was fully aware of the crime rate and had contingency plans to avoid such issues.  So after our conversation, I was able to redirect my realtor and the direction I wanted to focus on.  Your realtor might have your best interest at heart as well, however, if it is not what your looking for and you have other plans you need to reiterate that with the realtor. Also stress that if they cannot get on board with your business model then you will need to find a different realtor.

deposits should have been clarified during an estoppel. does he reside at your location? Is he moving out? If he still lives there and is planning to relocate and has been a good tenant you could return deposit after he leaves. If it was me and they were good tenants and property was taken care of I would consider it. someone should be getting the deceased deposit back whether boyfriend or next of kin if they were in good standing as tenant. Are you planning on pocketing a dead person's Deposit?

Also in your lease make sure it states maximum occupancy. Typically 2 people per 1 bedroom.

If the numbers work I would say yes. You can have your lease set the standard for future tenants and put no dogs or smoking. You can request upon closing that the property be vacant, you can use the excuse you plan to update the property, or unit if you decide to keep one of the the tenants. look at the area for tenant funneling. Are there universities, hospitals, large factories near by that you could advertise your units to. If you can handle not having the units filled right away then you have a better opportunity to be picky about your tenants. If your numbers work and you've accounted for a PM then you can pass the job off to them to handle.

Either one can be beneficial, it's not a one and done job. You do not need to be a certified appraiser to see the value a home has or could have if updated, but the training will help. In the end I would recommend whatever you enjoy doing. Really sit down and determine what you want to do. If you think you might enjoy being a full time property manager try finding someone in your area who already is and interview them, shadow them and really get to know the job and see if that's something you want to do. Though to be honest you will more than likely become a jack of all trades when it comes to real estate with experience and time.     Broker, real estate agent, appraiser, property manager, maintenance, legal, accountanting, construction, financing, communications. There are many different aspects that touch on real estate. Think of one that is Recession proof. Good luck.