All Forum Posts by: Kristine Ann

Sorry you went through this but it's really interesting to read.  It's similar problem solving when you're water bill triples.

First:  I'm not sure where you live if it would be conducive to this, but you could look into ecotourism and agritourism. 

Second:  There are farms that sell shares of certain plots of land for a season (CSA). They generally pay upfront and come weekly to pick up. 

Third: RV parking or tent camping.  (Also on airbnb there are options to actually rent a set up tent which sounds weird but people do it.)

Fourth:  Set up a youtube channel, which is free.  Record or livestream your wheat fields, a babbling brook on your property, an anthill, a beehive. Anything with an ASMR sound and nature is popular right now.  It takes time to get that up and running and monetized but it's free to start and you have lots of land to film.

I know it's not the loan advice you're looking for, but I love brainstorming.

It is your problem, though.  If you are the lender and he is taking a loan with you, he is your problem.  He won't be able to refinance in 3-5 if the house isn't worth it. 

@Scott Mac That sage color is gorgeous!

Keep us posted @Sarah Smith!

You search by county.  Just google the county that you're interested in and "tax auction" and you will find the website.

Most NY tax delinquent properties getting auctioned are seriously distressed and troublesome.  If you win a bid, you are inheriting an expensive headache, a safety concern, and a tax liability. These are properties where the owners let them go to tax auction for a reason.  There is usually something seriously wrong with them.  I don't recommend you bid on any as a new person. Watch them for a couple years first.

I think long island sells tax deeds, but I'm not as familiar with those. 

One of my kids signed a lease with a big apartment complex.  She had a choice of putting down a deposit equal to two month's rent or paying monthly "deposit insurance."  The insurance is $150/month and she just renewed her lease.  

It worked for her because she was starting out and trying to conserve her cash.  And, wow, it works for the rental company!

The rental company doesn't need to pay the security deposit back to the tenant because it's "insurance."  The longer the tenant stays, the more insurance can be collected to add to the reserves . A landlord can keep those reserves and use it for normal wear and tear or more serious damages.  And let's face it, normal wear and tear is expensive between tenants.  It's pure genius.  

Who has offered this?  I'm wondering if I can do this?  Is there any restrictions on calling it "insurance" if the landlord is just going to deposit it into their reserves?

Thank you both for contributing.  The owner is no where to be found from what I can tell.  I will be bidding and not buying. 

My main concern is the condition of a house through two extreme winters.  We have a lot of precipitation and freezing temperatures.  Houses can't be sitting vacant through the winters around here without the potential for serious damage.

My main concern is flooding, for one.  If the electric has been off for two years, the sump pump is not working and the basement will be flooded.  And if the heat hasn't been on at all, due to freezing in the winters, there could also easily be busted pipes and flooding on the main floor as well. Knowing if the utilities have been on is a good clue as to the condition of the interior.

I'm also trying to strategize what to do if there is an occupant, but my main concern is the condition of the house. 

Since no one with direct experience answered yet...I don't have direct experience but saw someone else go through the initial evaluation period. They didn't end up getting the property after the research because the cost wasn't worth it at the time.

Call the code enforcement guy when he's in the office or actually walk into his office when you know he's there. That way you can hear it directly from the horse's mouth what the major differences would be. If he's never in the office, you can talk to the secretary in the office and they might be able to help you with some information. 

After you talk to the code guy, you'll of course need an architect to write up professional plans that you can submit for the permits.

Just extrapolating from the fact that you're only 19 years old and already have 60k saved up...Yes, go ahead and put 50% equity in if that's the factor that gets you the loan.  I have a feeling you'll be able to build back your savings pretty quickly.  Leverage is great but if you can't get the loan it doesn't matter.  

Personally, if I was living in a hotel I'd want to move more quickly too.  Hotels are very uncomfortable.  Once you have a primary residence, I'd move a a lot slower on the second investment property.  You have plenty of time and you don't want put yourself in a situation where you need cash for repairs or vacancies on multiple properties.

Have you been going into banks? If so, don't do that. Go to a mortgage broker that will shop around for a loan for you.  Let him or her find the loans you qualify for.

50k in crypto would make me nervous.  I'd sell it on a good day.  There are huge fluctuations in crypto and you don't want to have to sell on a down day.  I agree you should cash it all out and use it as your down payment to get you to 50% equity.  Heck, sell the stocks too and you'll be at 60% equity.  Leave the Roth alone. 

As far as employment and still not being able to get financing, maybe you just want to wait a year?  There will always be another deal.