All Forum Posts by: Account Closed

@Russell Harris You already own it, why not keep it?  Is that $12k actual equity? Meaning have you accounted for all the costs associated with selling? repairs from the tenant, realtor commissions, closing costs, holding costs, buyer requested repairs/updates etc? If not, that $12k goes away real fast! 

@Eric M. Being the number of MF units in an area is relatively small, your local MF brokers will generally know who all the sellers are and when those deals do pop up, they're sold before they ever see the market. 

To answer your subject to questions.

I use a standard purchase and sale agreement that states the property will be purchased subject to the existing financing, and a lengthy disclosure clarifying all the potential risks of a Sub2 transaction. Definitely find a good local attorney who's familiar with doing them! It's definitely not something you want to do on your own.

As far as the risks, the due on sale clause is going to be your biggest concern. You can do a lot to minimize your exposure to the lender calling the loan due, but at the end of the day it's always going to be there lurking around. With that, have several exit strategies for the day that one gets called:

1. Have cash available to pay the loan off
2. Private cash lined up
3. Hard money lender

4. Have enough equity to sell quick

@J Smith
$140,000
-$14,000 closing costs & commissions
-$25,000 in repairs
-$95,000 payoff
= $6,000 ..and if that doesn't get eaten up by holding costs (it will), ANY miscalculation in your repair costs/ARV and you're losing money.

Unless she's willing to come to the table with cash, i would walk away. 

Two words: Periodic Inspections. 

@Virginia Jones  @Rich N. nailed it. In my first couple of properties I let one of my GC's paint subs move into a rental i bought that needed some drywall/paint work, while i had a bunch of other projects going on at the time. Thought it was a win-win.. but almost verbatim as Rich mentioned, i got the "but i did all this work for you" line every. single. month. from then on until i finally booted him out. 

@Ron Tafoya Kudos for trying to be proactive..so don't take this the wrong way, but it's not any of your business until he stops paying rent or has some other breach of his lease agreement. People lose jobs all the time, it's on him to find another source of employment or means to pay his rent. Spying on your tenants is a pretty serious breach of their rights to privacy. If he violates the terms of his lease, kick him out. 

Any issues with the lender?

If you acquired it via a trust, did you have to quitclaim it from the trust before refinancing?

I think that it would help make America..you know..  great again.. lol if "someone" kept an open mind, and not shut out others based on their beliefs and opinions just  because they differ from yours :) 

@Mark Papale You've made it this far, suck it up for another 2 years and get that nice check every month.