All Forum Posts by: Kevin K.

Thanks Les, I will check them out.

I want to interview some property managers in the Colorado Springs Area, specifically, Fountain, Colorado.  I did a quick google search for a good interview spreadsheet, and found a few things, but any tips on a good checklist would be greatly appreciated.

My need date is Feb 4th and I already have a tenet (behind on rent) that was supposed to be doing a rent to own.  I had Residential Lease Purchase agreement with another investor in town with the agreement ending Feb 4th.

I am not so good at the property management piece, I am worried about the condition of the property and I need help fast.

I attended Aaron's class today and the material was great.  I am going to put the material to work ASAP.

@Bill S.

First of all, I really appreciate you taking the time to give me feedback. Here are my responses.

1) How and when did you determine value? Right now it's almost increasing 1% per month.

2) I agree that you are sitting on a time bomb. It's just a matter of time before you will have to shell out some funds

3) Why not ramp up your business and acquire some of your own skills and do your own PM and learn to screen and find good tenants? That will give you some cushion.

I tried that before and had poor results, but worth considering.  I also have a full time job and the property is 30 minutes away.

4) How do you get out of a lease option? Doesn't the tenant have an option on the property? You should be very careful with this. I'm guessing your other investor has not kept up with the current changes in financing laws. Dodd-Frank created a whole new world. You should really learn about what you are actually doing with this other investor and check it against what a competent lawyer that knows lease option etc.

Great advise.  The other investor said the lease option on his end expired and the current tenant is month to month.  He also said I just have to give 60 days notice and I can take over, or hand it over to a property manager.  Maybe I should seek out a good real estate Lawyer in Colorado Springs.  Do you have any contacts down here?

5) I agree with the refi option as well. That might further increase your cash flow.

Any good recommendations for Mortgage refi?  It is currently with PNC

I have a rental that I purchased in 2007 without knowing what I was doing.   I purchased close to the top of the market, with a no interest loan, thinking I would do a rent-to-own in a year or two and make a quick profit.  After multiple bad tenets and vacancies I looked to another local investor for help and we did a Lease purchase where he took over the property management, and gets a cut if he can do a rent-to-own, and I get out of it.  2009.  I also refinanced around then and got out of the no-interest loan.  Since working with the investor my headaches have gone away, I get about $100 cash flow after I pay the monthly mortgage, and 10% fee to the investor, but that doesn't cover a big ticket disaster that is probably looming on the horizon.

The market has heated up in Denver which is bleeding down to Castle Rock, Colorado Springs and Fountain.  I have no real exit strategy except to not lose money, but I feel like I am a step away from pouring more money into this property. 

Options: 

I can just let this other investor continue to manage it and then get 3% of the sales price if he can swing the rent to own.

I can get out of the lease option and find a property manager.

I sell the property.. I just have to give 60 days notice and then fix it up.

I purchased it for 160000 (2007)

Appraised at 207000 (2007)

Current value about 185000, but would need carpet and paint at a minimum.

I owe 160000

Home built in 2002, no improvements

Close to Army Post (Ft. Carson) that could be impacted by BRAC

Opinions?