All Forum Posts by: Michael Dumler

@Utkarsh Mathur as Nathan G. has mentioned, you need to confirm if HOA rental restrcitions are in place. Majority of associations will allow this, however, others will not, or at the very leat will have certian standard and requirements to be met. If the association allows you to rent the additional bedroom, I highly recommend having a lease for your future tenant/roomate.

@Shelita Compton depends on your current returns and investment strategy, but most investors would advise holding unless you 1031 your capital gains into another suitable cash flow property. To give you more insight, I recommend holding simply do to the fact that Cobb County has no initiatives or plans of builiding new apartment complexes. Now this may change with time, and in fact we're already seeing a new build right off of Powers Ferry near Windy Hill Rd, but most large contractors/insitutions are focused on buidling in Midtown given greater demand there. Simply meaning, less inventory in Cobb County, therefore, you can continue to expect your properties to significantly appreciate. Hope this helps! Please, feel free to reach out anytime if you have questions or just want to chat. 

@Michael Conte the seller and his agent have disclosed material defects in which they are both aware of. They are essentially making you, the buyer, aware of the situation/defect so that moving forward you understand the issue and to not bring this item of repair up during negotiation. "As is" language is fairly common and with it, don't expect the seller to complete repairs/improvements upon the property. Moving forward I advise that you still have the property properly inspected during due diligene. If the inpsection brings up other concerns not in relation to the structural problems, then that may give you more leverage when negotiating. The additional stipulations are merely there to cover the seller and agents back, but really all known material defects must be disclosed. Hope this makes sense.  

@Jeremy Flores if the seller allows an inspection before signing the purchase and sale agreement, then you should absolutley take advavtage. Even if you can't perform an inspection prior to going under contract, I still advise you do so during due diligence. One wrong item comes up, wether it's a structural or foundational issue and your deal could be shot. 

Questions to ask the seller. Has the property had any prior repairs or renovations? Are you aware of anything that is damaged or will need to be repaired? Have either the kitchen or bathrooms recently been updated? Do you know the age of the water heater, HVAC, or roof? Hope this helps! 

@Zach Horse out of state/out of town investing all revolves around developing a team. David Greene talks about this all the time and has a book specifically for out of state investing. If you're looking to expand your portfolio, you need to develop your core four (agent, pm, lender, contractor). Specifically, interview and work with an agent that either has rentals or is consistently working with out of state investros. Once you find a resourceful agent, usually the rest of the team is fairly easy to assemble based on referrals. At the end of the day, you need people in your business that you can trust. Personally viewing each property before putting in an offer is going to be time consuming and costly. My recommendationa and experience when working with out of state investors is to view the property once under contract during due diligence. Hope this helps! 

@Oscar Garcia great to see your interest in real estate investing. Most experienced investors typically revert back to the question and will ask you, "what is your WHY?" Without having a significant purpose and why, most newer investors will try to gain entry in the space and quickly get discouraged after realizing all of the challenges RE investing brings. Not to sound like a broken record, but it is vital to get clarity on your goals and criteria. If you haven't already, I highly recommend joing an REI meet-up/networking event. There is something to be said about learning from other peoples experiences and mistakes when speaking with them in person. Books and podcasts certainly help, but personally some of the most essential principles and actionable steps I've learned have been gathered from REI meet-ups. Last note, be patient and take into consideration that real estate is a time sensitive investment. BP speaks about this often and yet some folks still believe they'll get rich from one deal. Hope this helps!

@Riley Sanders if you planned on purchasing using conventional financing, the wholesaler would have to be paid outside of escrow. A lender won't allow a wholesale fee during a purchase and sale transaction which is why wholesalers require cash or hard money loans. For your situation, I would stick with on market properties. Generally, on market transactions are much easier to deal with as a buyer. Hope this helps!

@Todd Handriegh Brandon Turner speaks on this issue quite often. Unfortunatly, you've become too connected and emotionally attached to your tenants, as harsh at it sounds, you need to put an end to that. Your situation revolves around the importance of hiring a property manager or third party to take care of issues such as the one you are facing now. I'm all for trying to come to terms and helping tenants when needed, but recognize this can fall into a slippery slope of them taking advantage. I advise hiring someone in your business, similiar to that of your friend who has no issue dealing with this type of confrontation. To fully drive the mental aspect home, think about if you owned a convenience store and a customer stole from you. You would not be compassionate in that situation, and the same applys to being a landlord. When your tenant misses payment or breaks an agrrement stated in the lease, they essentially are stealing from your business wether intentional or not. Hope that makes sense and helps. 

@Richard V. agree with @Greg Scott does 10k out of pocket kill your deal? Chances are it should have minimal impact. I would not let appraisals dictate the course of your investment. For future reference, while appraisals don't always come in below intended purchase price, you can expect this to happen more frequently given today's market. Again, if all the other boxes are checked, I would reanalyze and proceed forward if it makes sense to do so. Best of luck!