All Forum Posts by: Tim Asher

Looking for a referral for a lawyer.  I am needing to have notices sent, possibly served to tenant for lease violations.

Tim

Welcome to BP!  I agree with everything above.  Another thing to add.  The Iowa City city council passed an ordinance limiting the number of rentals allowed per neighborhood.  I confess I don't know the exact wording or technical details.  This could throw a big wrench into any plans you may have for Iowa City unless you plan on whole saling or fix and flip unless the property has been granted a permit and will continue to do so.  So, like stated above this could be another reason to maybe shift your focus a little.

Glad to see another BP member here from IC!

Tim

I think that someone can be successful investing both short distance or long distance as long as someone is accepting of those risks.  

Either distance can have a property manager to handle the property.  A drawback being it is harder to check up on the property over a long distance.  Are you willing to travel to check from time to time? Or have other connections (boots on the ground) to check for you with possible pictures or video?  Getting a property manager can take time and effort to find one that will work the way you want them to.  But that goes for both local and long distance managers.  

Property managers cost money.  Both bad and good ones.  Are you looking for max cash flow?  Or only self-manage? Portfolio building?  Or long term investing where perhaps you are willing to forgo max cash flow in order to get a good deal in another area?  

I guess the way I look at it is this:

If you are willing to take the risk, are well aware of those risks, to buy long distance, then go for it.   If you are looking to play it a little safer, then go local.  

I would also stress to all three girls, that it doesn't matter who isn't paying her "share" rent is due when it is due.  And that it doesn't matter who doesn't have their share.  And you will pursue all avenues to collect any outstanding rent from anyone of the three if the situation goes sideways. I had a landlord that told that to both me and my now wife (girlfriend at the time). A little peer pressure can be a good thing.

Unless of course, you have 3 separate leases each outlining how the rent is divided.  In that case, the above advice is moot and a lot of wasted text.  

Hi,

Welcome to the neighborhood!  What market are you looking?  The north liberty area is booming with many condos going up all over the place.  Are you looking to self manage? Looking to stay local? Or possibly move in a different direction?  My rental is a condo in NL and has been pretty easy so far.  Where ever you decide to look, you want to make sure you look up local rental regs/laws to make sure that you following them all.  I would say to find out where you want to invest then drill down from there.

Hi Samantha,

I can not say one way or the other since if I were to say one way or the other, would be mean I know them all.  And I don't.  

But I do know that there are several that own many properties.  There are many big players in the area and realtors know that they can move fast and buy them at pretty much a moments notice.  Now if you can't do that, I would suggest maybe talking to a property management company,  See if they have any properties under management, that maybe someone is looking to get rid of?  This might give you the extra time needed to work a deal, and make a few connections on the "inside".  

Hi Matt,

I currently live in Iowa City, and yes it can be quite a boom to be able to have a rental in a college town.   You did mention about wanting to get some experience before looking to rent in a college town.  Good idea.  Now I can only speak about Iowa City, so I don't know how it is in other college towns.  I know BP had a podcast about a guest that owned several units in college towns in Colorado I believe.  

Iowa City has some pretty big players in the student market, and it can be difficult to find quality while being able to act fast on something.  Also, Iowa City has cracked down on what is allowable in leases as well as what can be charged to tenants when they leave.  (an actual class action suit was filed against a relatively big player in the student rental market).  

I would definitely get your experience renting, find out what regulations/policies are required in Iowa City and maybe compare with other college towns.  You don't want to put your shingle out only to find that suddenly the numbers don't work or your target market can't move in because of something that you over looked.  Or consider maybe renting outside of Iowa City proper.  Lots of students are renting in Coralville or North Liberty just simply because of the lower rents.

I am not trying to scare you away.  Quite the opposite, i just don't want you to have you show up and fail because of something that maybe you weren't aware of.  I think there is always room for more good landlords.  Good landlords makes the market for good rentals.  

Tim

Hi Steven,

I have lived in the Iowa City area for about 25 years.  Before that south of Des Moines for 8 years and before that (K-4th grade) I was in Pleasant Hill.  You say you have your first deal, but didn't say where it was.

Is it a property that you would have a manger look after or family member(s)?  The Iowa City area is growing and there will always be college students to rent to, but you didn't say what kind of deal you are looking for.  

Let me know and I can give you what I see from my perspective. 

But welcome to the community on both fronts!

Tim

Like others have said, check into why she can no longer afford the home.  A short sale could mean a loan that isn't listed on her credit. Yet. Foreclosure could be the same.

 But if her only income is Social Security, that can not be garnished, so that income is safe.  While I don't know her situation, and I don't know your relationship with her.  But you could bring up what is called a "Deed in Lieu of Foreclosure".  This means she deeds the house back to the bank, and in Iowa, the bank can't go after her for any deficient balance on the mortgage.  She will get a 1099 form come tax time.  But I would rather pay taxes one time rather than paying interest on the same amount along with repaying the loan as well.  But the bank would have to be willing to accept the deed in lieu.  If there are other creditors with liens, it might not be a possibility.  But is she can, she walks away free and clear, and that debt is cleared up. 

 It will damage her credit, as a non-judicial foreclosure (I believe), but after a little while, her credit will rebound.  But if the mortgage has been a relatively long problem, her credit might not be hurt that much more.