All Forum Posts by: Justin Tahilramani

@Lee S. - If the property is way overpriced why are you spending time walking through the property with a contractor? Do you have reason the believe that the sellers will accept far less than asking price? 

@Roy Mitle - If I understand your question correctly, you are asking if renting to individuals or families is better. Renting to individuals can make sense if you are in a college community. This is because the sum of rents combined are often higher than what you would get if you rented the entire house to one tenant. That being said, every additional non-related tenant increases your potential for issues by 100%. 

Proving earnest money means that you have "skin in the game". In some situations you forfeit your earnest money when/if the deal does not close. Personally, I would not take a home off the market unless I had earnest money (POF or Pre Qual).

It looks like they have been trying to sell this property for years. I agree that the price is high - rents would need to be 2x higher to be attractive.

@Bryan N. - Not sure that I agree that he is "hiding the truth". Rather, I suspect that he would like to maintain his privacy while investing in real estate. I would not want any of my tenants knocking at the door of my personal residence - would you?

@Lindy McConnell - Use a property management company. Make sure that they do not divulge who you are. If you want real privacy - purchase under an LLC and use a property management company.

@Chris Mog - Are you concerned about getting into a new area of RE investing? Your original post said that you have experience with flipping SFRs. Why not get back into that? 

@William Donnelly - I would be skeptical of why one of the units is rented Section 8. If its a higher end unit that demands $1,000 - 1,300, who would agree to only $800/month. Have you checked out the rent rolls for the property? 

In my experience banks are not really interested in making repairs on REO properties (unless it is required for financing). I would bet that you would be better off making an offer for 2k less, but that's just speculation on my part.

- Justin

@Steve Vaughan - I have offered a buyers agent money before in an FSBO deal. I was selling my house and didn't want to pay 5-6% in commissions. A buyer came by with their realtor to look at the house. The buyers wanted to make an offer and their agent asked if I would be open to a commission for her work.

Its only fair for me to pay her for bringing her clients, negotiating an offer, and dealing with all the inspections.

I told her that I was willing to offer 1.8% of the sale price - which she gladly accepted.

I ended up paying her around $4,000, which saved me $8,000 to $10,000 in Realtor fees. 

Thats a win-win in my book. 

 - Justin