All Forum Posts by: Kerry Baird

Did you assign the deal or did you close in cash and then close again with end buyer?  

Are you choosing to work in this market, or are you randomly making low offers on Zillow properties that are high days on market? 

How did you determine what repairs needed to be done and how much they would cost the next buyer?  Did you have an agent or someone else do a walk-through for you?  I’m intrigued.  

I have bought several properties in Texas while living in England, where we never stepped foot into the property, but they were newer homes and no repairs were necessary.  

What’s your plan to do this again?

Yes.  Why in the world would she come off the deed, but remain obligated on the mortgage?  And whoever makes the payments on the mortgage could stop, resulting in a notice of default, leading to foreclosure…making this a risky situation for the wife to be in.  

Nice move on the buy side, and excellent situation where STR/MTR assists you in covering the mortgage.

Tell us more about financing the down payment…did you use family/friends or a HELOC on another property or something else?

The “no closets” comment makes me nervous, as I have been told numerous times by appraisers that a space is only a bedroom if it has a closet and a means of egress.  Add closets to add value.  Tenants will want to store their belongings, otherwise you get transient types.

Welcome to BP! 

I got my start on investing in Tucson, following a few live-in fixers.  I really liked finding the probate houses there, which often have great structure and outdated paint/carpet.  If you haven’t done so, join AZREIA or smaller local meetups, where you may meet investors (who ought to be repeat buyers).  

Talk to a mold remediation person.  I had a guy come to one of my houses recently and he said the situation improves once moisture is removed.  In our property, the house was open to the air in the damp environment of coastal Florida, no heat or A/C at the house.  The plaster shows mildew, and because it holds so much moisture, he has recommended taking down the damp plaster before the weight of it collapses.  In the beams and wood plank flooring, we sanded and sealed with tung oil. 

A mold remediation business will be able to tell you the extent.  My guy said the mold needs to be heated or sealed in, hence the shellac you mentioned. Additionally, they test to determine what sort of mold/s are present, so as to determine toxicity.  

@Doug Smith, that is such a great response.  It has been my experience, too, that smaller banks with a deposit relationship have a lot of flexibility and a variety of products on offer. I’m thinking letters of credit, lines of credit, renovation loans, and so forth. Whereas I moved some of my business money to a big national bank, and there is so little they can do for me.

@Neel BS, thank you.  It is a moving target, to be sure.  

@William Silva, I put down either 20% or 25% on my houses. 

@William Silva

Saving up for down payment and 6 months' reserves for each property I own became onerous. DTI also become an issue. DSCR avoids both of those. Interest rates are not the driver for me.