All Forum Posts by: Lee Schreck

I’m looking for some advice and help on this situation I got myself into .

I currently own a property in which I owe about $33k on.

I need to get rid of this property as it is almost 2 hours away from me and I have too many other projects going on right now. I just don’t have time to deal with it right now.

There has been a long-term tenant in place who just vacated and the property is outdated and needs to be rehabbed. Currently vacant.

ARV around $120-130K

Estimated rehab of $25K

I’ve had it under contract twice now and both times the buyers funding fell through. Once at $95,000 and the second time at $85,000. 

I don’t want to put the money in to rehabbing it for sale as it would pretty much be a wash if I just sold it as is in the current condition as a fixer upper. 

Since the interest rates are high right now and prices pushed back a little bit I thought about doing an owner finance on a five year balloon.

Thinking about paying it off in full and then turning around and doing an owner finance at a value somewhere between its current condition value and the ARV.

What are your thoughts? Should I just sell it as is which could be a few months of closing the deal or just pay it off and sell it as owner financing. I’m just not sure of the headache or risk that is involved in this process of holding the note, etc. I never done anything like that before. 

Also heard about selling it on a wrap mortgage without me paying it off. But I’m not sure how that would be structured and I can’t seem to find any solid information on how to handle that. 

Open to other ideas, I haven’t thought of.

Thanks for your time 



@Kayla Jones

I use Zillow rent manager. For collecting rent it’s free for you and the tenant. Once the tenant pays it’s takes about a week for your deposit.

This way I can also list the property for rent and keep all the management out of one service. ie...listings, applications, background checks, and then rent collection.

@Rick Wade

Check your settings. I have my video quality on standard. I have it set up to end recording if motion stops. And my clip length at 30 seconds.

@Rick Wade

This Friday will be 2 weeks into my bill cycle. I have used 256mb of data. This is 3 cameras on the Blink system.

The more you view the cameras the more bandwidth you use. When I first got my cameras I used to check constantly and now I only look if I get alerted of motion being detected.

I have my cameras adjusted so I only get motion if someone physical walks onto my porch, goes into my backyard, or is inside the house. My cameras rarely go off. This is why 2gb is plenty for my application.

@Zach Tarwater

Have you found any factual information on whether or not loss of rental income qualifies for the cares act withdrawal?

@Colleen F.

I know what your talking about and it does happen. Not often though. You have 10 settings for the sensitivity.

I've also noticed they work best with side to side movement instead of straight on. I have mine set to the side of the porch so anyone coming toward the property creates that side motion and they trigger immediately.

For the most part I haven't had any issues with them. I just bought another set for another property so I guess I'm happy with the results for the price paid. Super easy to set up and the app works great.

@Alexia Ward

Call your local bank's mortgage department. Ask them what the current timeframe is to close.

Every area is different. Depends on the demand and how busy the banks, appraisers, title companies are.

I was just in contract with a 30 day close. After 2 extensions by the bank we finally closed at 45 days.

Hope this helps.

@Rick Wade

I have T-Mobile cell service. I purchased their T9 Wi-Fi hotspot outright for $90 then purchased Blink Wi-Fi cameras from Best buy.

The wifi hotspot plan run $10/month for 2gb. I own the T9 outright so I can start and stop the hotspot service as needed. There is no monthly charge on the Blink cameras.

@Joel Zwemer

You could take the loan in your name only. This keeps your wife's credit freed up for more total mortgages, but title the house in both of your names. By titling in both names it is much harder for a tenant to bring legal action against you and get a judgement in their favor.

Then protect everything with a million dollar umbrella policy. This will cost you around $250-300 per year.

@Jeremy Helsabeck

Typically 24 months with a standard mortgage.

From experience I can say to make sure you do not show a loss on the property you do acquire or the bank will not count any of the income for that year. For a standard mortgage you will need 2 years of tax records showing you did not lose money.