All Forum Posts by: Michael Lauther

@Cheryl P. Welcome to BP, I live in NY and Invest in Dayton OH. Long distance investing is a challenge but if you do your homework and develop local contacts it is rewarding. Best of luck to you.

@Khadijah New welcome to BP and best of luck in your investment career. The Dayton /Cincinnati market has great potential.

@Ben R. I agree that financially that would be an equitable solution the market rent is around $2200 month but in the end it may take upwards of 2 years for her and her husband to get qualified tor a mortgage.

Is a possible solution to deed the property to my sister with a 640 credit score and rent the property to my brother with a credit score that is too low to qualify but more than enough income so that the cash out would pay the remaining siblings and leave the property owned by the one with 25% equity?

@Jon Holdman and @Tom Goans Thanks for your input and I agree with both of you as to the difficulty in handling this.

We recently Inherited Our family home in Bethpage NY. There are 4 grown children that will share equally in the estate that consists of the residence worth approx. 320,000 to 350,000 and 20,000 in government bonds. No other cash.

The challenge is that one of the four beneficiaries has lived in the home for the last 51 years and has shared the home with her daughter and husband along with our mom who fully supported the home. Understandably our sister wants to remain in the home but will not currently qualify to get a mortgage to compensate the other 3 siblings for their share. Her credit score is approx 620 but her husbands is in the 500? and he is on disability with an income of around $4000 monthly and a candidate for bankruptcy. His financial problems are separate from my sisters but currently his is the only income and My sister is unemployed looking for work. Her anticipated income would be around 2000 monthly.

The other three siblings would not qualify for a mortgage on there own for reasons including already owning property that would make the debt to income ratio untenable and in one case troubled financial history.

I am thinking that one solution would be for us to accept the property and then transfer it to either a trust or an LLC which would rent it to My sister untill she could qualify to buy the others share. The thought would be that we could then possible qualify for a loan to satisfy those of us that need the cash or a portion of their inheritance and adjust the trust or LLc accordingly.

Any Thoughts would be appreciated.

@Patricia Milward I would be interested to hear about your REIA meeting on Tuesday. Are meetings held in Suffolk County? Best of luck and Welcome to BP

@D.C. Sparrow @Laura Marshall makes some very important points. It is apparent that the owner has found out that he will not make any money on a short sale and if he can walk away with $5,000 he is ahead of the game. He may qualify for a $3,000 HAFA payment if he is eligible for making homes affordable. that may be enough to get him to go ahead with the sale, not to mention the lesser hit to his credit report and future ability to get a mortgage . If you have done your homework regarding clear title and can pay off the mortgage perhaps a subject to, could work but my experience is that distressed homeowners are often over a year in arrears with taxes , insurance and penalties building and this will add significantly to the cost to pay off the current mortgage.

@Dionna Littleton Good to hear from you and best of luck with your investments. I live on Long Island about 70 miles from NYC but invest in Dayton OH. Look forward to hearing abouit your progress in NY.

My last investment in Dayton OH zip 45403 .

was a 3 bedroom 0ne bath two story property .

purchase $17,000 rehab $9,000 all in at $26,000 taxes $1400 insured for $40,000 at approx $700 . Rent is $700 a month sec 8. in a quiet residential neighborhood. I use a handy man for minor problems and sec 8 pays rent directly to my SDIRA. Rental income is $8400 less Taxes and insurance $2100 also pay $7 a month for insurance for water and sewer linen and $100 a year for insurance on heating systems that covers emergencies. That comes to $184 a year bringing my net operating income $6116 . I expect vacancy will occur and should have minimal maintenance expenses. This will reduce income but even if I hire a property manager I would expect to recoup my investment in 5 years. Property appears to have appreciated but the market is spotty and I can buy property like this all day long . Fortunately my exit strategy is to collect rent as long as possible. If the retail market rebounds these properties should increase substantially.

Taylor Green sec 8 in Dayton takes 2 to four weeks to get approved once the tenant with a voucher signs a lease. as a practical matter you probably wont pass the first inspection they almost always find some flaw that needs to be fixed and once it is fixed another 2 weeks to re inspect. You wil have to screen sec 8 tenants just as you would any other while the rent is guaranteed (for now) there is no guarantee that new sec 8 tenants wont trash your property. i will say that my sec 8 tenants have been outstanding so far but i only have a few years experience with them. If your Property is in Arizona you should visit with the sec 8 in your areas and discuss their particular requirements . There is a web site where you can advertise to sec 8 voucher holders for free and the listing will allow pictures of your property.