All Forum Posts by: Michael Olesky

@Curtis Yoder, I'd say call around some different insurance brokerages or ask other homeowners in the neighborhood where they have their insurance.  My parents recently bought a 1960s house in Satellite Beach that was originally quoted at 1800/yr, after calling around we found a local insurer that would do it for 1200/yr for the same coverage.  I didn't think we would get it that low with an old house 2 blocks from the beach.

@Matt Sterling

I don't think the question is about the sex offender, I'd say the question is about the property condition and current tenants based on the fact the current owner is ok with renting to a sex offender.  "Sex offender" is too emotionally charged, I would want to look at this thing logically.  At this point, you know the current owner has lower requirements on tenants than you, what else does he have lower requirements for that will cost you $?

Wouldn't standard procedure be to run all tenants through your screening process on renewal and not renew the ones that failed to meet your minimum requirements?   If the current landlord ok'd this tenant, than who knows what other characters are also living there.  So if I were in your shoes, I'd want to account for a high vacancy/turn over expense for year 1 and possibly 2 depending on the leases.  

And if the current owner was this lax on tenant screening, I would have to assume his attention to maintenance was just as lax.  So I would also account for a hefty deferred maintenance expense in year 1 & 2.

My concern with this deal is the risk/reward scenario of investing in class C,D, & F areas that is debated on the forums regularly. From what people report here on BP, the numbers look great for cash flow but turnover, crime, evictions, etc. eat your profits and make your hair fall out.  Of course, some landlords know how to make things work in these neighborhoods so it is definitely profitable for some. 

I didn't see you mention what class neighborhood this is but from what I've read around Central FL, sex offenders aren't living in the decent neighborhoods.  

These are just the things off the top of my head and I'd already be done with this regardless of what the "numbers" look like.  

Some food for thought, if you don't have money to buy the place, what will you do when you own it and have things break?  I've replaced two AC's this year which cost around 13k total.  One was for a rental that i've owned for a few years, one was for a my primary residence and it broke down just about a month after closing.   

For me to be comfortable, i need to still have a solid 10k on hand that can be spent on the house after closing.  This money doesn't come out of my families emergency fund.  So if i loose my job, have a vacancy and have an AC break I won't loose it all. 

Newbies focus on what it costs to get into a property, but the real concern is what it costs to stay in the property over the length of the holding period.  I'd like to buy another house right now, but even though I have the funds to acquire a property, i don't have the funds to maintain the unknowns of a property after I own it, so I watch and wait for now.

@Carole D.

  Congrats and the best of luck!  I think Pinellas will continue to be a solid investment for years to come.  I'm originally from Indian Rocks beach/Seminole/Largo area and have watched it grow.  

I've always thought that the St Pete/Seminole/Largo/Beaches areas were geographically similar to san fran being a mini penninsula, seems like the isolation has help san fran grow more than surrounding areas so I'm interested to see how that plays out here.  

@Coire Fox

  I second @Kyle Gregg.  This isn't your problem to solve with a personal loan, this is a problem for the agents and loan officers to solve. 

Even if you gave this seller a personal loan, there is no guarantee that the deal would close or that she would use the money for what she says she needs it for.  I don't do personal loans ever, if a friend is a bad situation, I'd rather just give them the money than loose a friend over an unpaid loan.

If the appliances aren't conveying with the property per the contract, can't she sell them now instead of waiting until closing?  Not sure I understand her issue and seems a bit iffy to me. She's more worried about Friday than the next two months after this deal falls through, something doesn't add up.  Friday will be just the beginning for her if the deal falls through now.

Best of luck!

I say keep her!  Posts have been boring around here lately.  This sounds like something I could tune in to daily!

Jk, donate to a charity or something because a miracle just dropped in your lap if she is wanting to move already.  

@John Pruner

John, you have to realize you've been asking for advice on this issue for 9 months and instead of taking anyone's advice you have spent this time giving excuses for "JV"'s shortcomings. So folks are obviously frustrated since they've spent their valuable time reaching out to you online & offline to help you out of this mess.

  The advice has been consistent here, HANDLE YOUR BUSINESS. 

This doesn't mean calling JV and asking him to do anything, this means flying to Atlanta and securing your asset and ending your relationship with the JV. Which was my advice 9 months ago.

His problems aren't your problems. The guy who's house burned down and he couldn't mow your lawn earned you an ARREST WARRANT and who know's how much in fines and lawyer bills to clean up this mess. I feel for the guy, that sucks, but that should have absolutely no implication on your project except that you have to call someone else to get it mowed. Hell, that could have been a win win if JV was smart enough to offer the guy a place to stay in your vacant home so he could at least continue mowing the lawn if not doing other work. Maybe, maybe not but something I would have looked into.

I had a good friend when I was younger that always gave me the best advice.  Whenever I came to him complaining about a problem....

he's advice was always "Handle it!".  That advice hasn't failed me yet. 

So John, in honor of a fallen friend, Alex and I both recommend you HANDLE IT!

Report back when you've handled it.

This might be the first time I hoped the OP was a troll because this is too painful to read...

Here's another way to look at this, I could never F up on any job I've ever had for this long and still be employed. Fire your "JV partner", you are now the boss.

@Account Closed

  is this the thread?  http://www.biggerpockets.com/forums/311/topics/183...

Show her how you can invest those shoes today for better shoes tomorrow!