All Forum Posts by: Account Closed
Account Closed has started 141 posts and replied 4068 times.
Post: Evictions Gone Bad - Yikes!
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- Scottsdale Austin Tuktoyaktuk
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Don't try this at home:
Everett man, 84, accused of killing his missing tenantSep. 8, 2021 at 11:01 am Updated Sep. 8, 2021 at 5:59 pm By The Associated Press
EVERETT, Wash. (AP) — An 84-year-old Everett-area man is suspected of fatally shooting one of his tenants, who remains missing, authorities said.
Lloyd Richmond was booked into Snohomish County Jail Friday for investigation of murder and assault, The Daily Herald reported.
The presumed victim is a 49-year-old Everett man who was last heard from on Aug. 28, the Snohomish County Sheriff’s Office said. His name wasn’t released.
Neighbors reported hearing an argument between Richmond and a tenant on Aug. 28 before hearing gunshots, the sheriff’s office said. Investigators believe Richmond later moved the body from the home.
A neighbor reportedly saw Richmond get a gray tarp, “wrap something” in the driveway and load it into the bed of his Dodge pickup, according to court papers. The neighbor later saw Richmond spread some type of “litter or absorbent” to cover up a red stain on the driveway, documents said.
Post: Best Cities for Rental Property Investment
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- Scottsdale Austin Tuktoyaktuk
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Originally posted by @Blake Dailey:
I like primary and secondary markets around the Gulf Coast of Florida like the Tampa area, Panama City and Panama City Beach, and further west to Pensacola. All of these areas are growing with jobs, population and net migration. You can still get in for decent purchase prices and experience above average appreciation, with good price-to-rent ratios. And they have multiple economic drivers and solid tourism so long term and short term rentals both work well here. I definitely plan to continue buying in these markets!
We were just stayed in your area (30a) and left the day before Ida blew in. Was there much damage or it still as charming as before?
Post: Hard Money Lenders. What to avoid.
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- Scottsdale Austin Tuktoyaktuk
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Originally posted by @Jonathan Chan:
@Account Closed The hard money and how it works is the part I get. The part I don't get is, why are they so aggressive in their search to loan out money. It seems odd to me that they're willing to just throw cash at anybody who mentions the term.
Jeminy Crickets, I didn't realize they had already deposited the money into your account. Lol.
You assume too much, my friend. They become very picky when it gets down to specific properties and loans. Most hard money loans that start out don't get funded. It's a numbers game. Get as many applicatons in as possible, collect some fees from everybody and fund 5% to 10% of the loans.
Submit your application and see where it goes and how much they want "up front". Not all is as it seems.
Post: Should I keep this rental or re-invest in quadplex.
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- Scottsdale Austin Tuktoyaktuk
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Originally posted by @Joe Villeneuve:
Originally posted by @Account Closed:
Originally posted by @Jeff Gardner:
Wondering if there were any mentors who could examine my numbers on a rental house that I own.
I own it outright. Zero liens.
Rent: $1553 per month autodeposited
Taxes: $8200 per year
Management: 10%
Expenses: $3600 (water bill, repairs)
Insurance: $50 per month
We've had a major "repair" event each year so that's why the expenses are super high. This year was a water leak in the basement.
The cashflow is not that high and the area doesn't appreciate appreciation. I could sell it for $220,000 right now which is the same 5 years ago.
Would you take that cash to a better cashflowing property?
Figure 10% sales costs if you use a real estate agent and typical escrow and title. So with a $220,000 sales price you'd probably net $200,000. That would be a loss if you bought for $220,000. I'd run the numbers before I'd sell.
No it isn't...a loss that is. This property has no liens on it now, but it was never stated if it was originally bought with all cash...or with a DP. The cost to the REI isn't the contract price...it's is ONLY what the REI paid out of pocket. In this case, assuming there was a DP, that cost to the REI would be the sum of that DP, plus any months there was a negative CF. As long as there was positive CF, the tenant's rent was making any and ALL payments that month...this includes the mortgage. Subtract that total from the "after closing cost" sale of $220k, and that would be the profit.
Assuming the property was foolishly (sorry) bought all cash (see above why), and the property continues to have negative CF (adding cost to the REI...see above), the cost to the REI only increases...as does the accumulative loss. Recognize this is something that will never be recovered, and only increased (the losses that is), it's time time cut these losses, take the "after C.C." profit, and put it into the next property where you CAN recover these losses..along with new gains.
Sure there would be loss. He has transactions costs from the purchase and from the sale. That is money he once had in his pocket but now doesn't. Even if he paid cash he has title, escrow, inspection, appraisal, for buying and realtor fees, title, escrow for selling not to mention property taxes and any capital gains. If it leaves my pocket and doesn't come back, to me that's a loss.
Post: Trying To Help A Seller With An Upside down Mortgage
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- Scottsdale Austin Tuktoyaktuk
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Originally posted by @Eli Morris:
Hello! I was talking to a seller about possibly purchasing his property. He said he's ready to sell but he owes about $100K in taxes. Can anyone give some guidance on how I may be able to help and purchase the property?
Unfortunately the solution is to pay the taxes.
Post: Should I keep this rental or re-invest in quadplex.
- Investor
- Scottsdale Austin Tuktoyaktuk
- Posts 4,205
- Votes 4,163
Originally posted by @Jeff Gardner:
Wondering if there were any mentors who could examine my numbers on a rental house that I own.
I own it outright. Zero liens.
Rent: $1553 per month autodeposited
Taxes: $8200 per year
Management: 10%
Expenses: $3600 (water bill, repairs)
Insurance: $50 per month
We've had a major "repair" event each year so that's why the expenses are super high. This year was a water leak in the basement.
The cashflow is not that high and the area doesn't appreciate appreciation. I could sell it for $220,000 right now which is the same 5 years ago.
Would you take that cash to a better cashflowing property?
Figure 10% sales costs if you use a real estate agent and typical escrow and title. So with a $220,000 sales price you'd probably net $200,000. That would be a loss if you bought for $220,000. I'd run the numbers before I'd sell.
Post: Hard Money Lenders. What to avoid.
- Investor
- Scottsdale Austin Tuktoyaktuk
- Posts 4,205
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Originally posted by @Jonathan Chan:
I've been using my own funds to finance all of my real estate up until now. However, I've recently decided to look into hard money/private lenders to begin funding all my deals. I'm extremely surprised at the response. It's like the minute type "har..." I get an email in my box begging me to borrow their cash. Is this normal? It really rivals the whole car warranty extension calls and letters that I get.
Typically hard money is 80% financing at 12% interest and you pay an additional 1 or 2 points. You have to come in with 20%, they determine the value of the property which is usually less than what you think it's worth and the loan runs for one to two years then you have to refinance.
Post: Hello Asheville BPers
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- Scottsdale Austin Tuktoyaktuk
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Originally posted by @Mike Szabo:
@Mike Hern Haywood county, just west of Asheville got hit really hard. They had a few deaths related to flooding.
Sorry to hear that. Thanks for the info.
Post: Hello Asheville BPers
- Investor
- Scottsdale Austin Tuktoyaktuk
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Originally posted by @Mike Szabo:
@Christin Prince
Hi Christin, I have used Chris Caldwell wit Movement Mortgage here in AVL for conventional loans and he has been great.
Did Ashville escape hurricane Ida? From the maps it looks like down the road in Gatlinburg they got slammed but I haven't heard for sure.
Post: Tenant wanting to do bathroom renovation?
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- Scottsdale Austin Tuktoyaktuk
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Originally posted by @Leah Woods:
Hi All,
I am a relatively new landlord. I have a duplex in NH and the new tenant has asked if she could do renovation in the bathroom in her unit. She wants to either move the toilet from one side of the bathroom to the other, OR swap out the vanity for a pedestal sink. I believe that this would improve the space for future tenants, but my first inclination is that this is too complicated and opens up a "can of worms". She has said she'd be willing to spend up to $1000 (her money and not be reimbursed) on the work, including fixing the laminate on the floor, painting the wall, etc.
Does anyone think this is a reasonable thing to let a tenant do? or are there legal issues I'm not aware of that could affect me?
thank you for all advice!
Leah
Moving a toilet from one side of the room to another can't be done for $1000. You have water coming in to feed the toilet and drinage going out. It requires ripping the wall out, running new waterlines and drainage in the bathroom, and repairing. The drain has a vent pipe that goes up the wall and it may need to be relocated as well. Sinks and tubs and toilets have required "space between fixtures clearances" you have to abide by when installing new fixtures. It would have to be inspected to be sure it's done properly.
To remove a vanity and replace with a pedestal is the cost of the pedestal, cost of replumbing under the sink and fixing the floor to look natural and might be able to be done for $1000 depending on scope of work and what mold/rotted wood issues arise in the walls and floor.
She will have her friend do the work (a qualified plumber won't do that extensive of work for $1000). So, make sure you get a copy of the friend's plumbing license, and insurance for your files. The work may not be covered under your insurance policy if it leaks in the furture, if it isn't done by you or a licensed plumber and inspected.