All Forum Posts by: Mindy Jensen

A few things to ask the sellers.

1. Why are they selling? If they can make money off the same tenants, why sell?

2. How did they qualify these tenants for the rental? Background check, criminal history, etc. You don't want to buy someone else's problem. Maybe they are selling because these tenants are nightmares.

3. Are they using a management company? If so, ask for contact information. Perhaps this management company could help with the transition. Perhaps they could tell you all about the horrors of the people currently living there. (IDK what the laws are regarding confidentiality with PMs, so take that with a grain of salt.)

4. Has the tenant ever been late with the rent? How many times per week or month does the tenant call the landlord? 

5. When was the last time the sellers actually stepped into the property? A 4-year tenant could be great, they could also be a hoarder with 76 cats and the whole house needs to be taken to the studs to get the stench out. Search Cat Litter House to read more about that pleasantness.

On the surface, buying a property with a tenant already in place sounds like awesomeness. But if that tenant is a pain in the backside, or unqualified to live there, or late with the rent every single month, or calls the landlord 9 times a week to come out and change the light bulbs or is a hoarder with cats (and hoarders always seem to have cats) then it almost doesn't matter what the numbers are. 

I used to think buying with tenants in place was great, but now I am leery of a seller who chooses to walk away from a great thing. Good luck and let us know what happens.

I live in my flips to save on capital gains, so I just bag up the stuff and throw it in the trash can little by little. My current remodel's trash pickup allows 275 pounds per week. None of my neighbors ever fill up their cans, and they let me top them off. 

Probably not a workable solution for a quick turnaround, but if you are there long term, see what an extra garbage can rental costs. Mine was $12 a month and they asked that I not make changes to the number of cans I have more than once every 6 months, which not only sounded fair, but I also happened to need the extra can for more than 6 months.

What a great story. This should really help motivate people on BP. Congratulations! It looks beautiful!

@Jim Horrigan Welcome to BP. 

I wouldn't say the first lender mislead you. They may have phrased the request weird, or the person you spoke to may have gotten crossed wires from the underwriter. It is also possible that you misunderstood or didn't give them the exact thing they were looking for. My last closing was a nightmare because my husband took out a 401(k) loan, transferred the entire amount to our internet account, then transferred 90% of the amount back into our checking account. This all happened between statements, so it wasn't documented the way they wanted it to be. 

It sounds like you have all the money for the downpayment, through a gift from your uncle and selling some excess items that you own. Can you give your uncle the money you have for the downpayment, and have him add that to his so it looks like the entire thing is a gift? That way, you don't have to account for the sale or anything like that. It still works the way you originally planned. (Every year, the IRS allows you to give or receive money tax-free. In 2015, the limit is $14,000.)

The bank isn't going to refund your appraisal fee. They had to pay an appraiser to do the work.

The first lender isn't going to use your information against you for anything. 

Your second lender is correct, they will perform their own appraisal. I am skeptical that they can get the closing done in two weeks. 

@Jesse T. gave you some good advice - you should definitely let the seller know financing is taking longer than you thought. You should ask your agent about writing up an Amend/Extend agreement, that extends the closing date. I would stick with the original lender, because you are two weeks away. 

@Account Closed said her daughter had to jump through hoops - that is true with any lender. They have their requirements, and they check and double check that everything is above board.

Pre-approval isn't the same as approval. I think Pre-approval is a misnomer, and a kind of stupid concept. Any bank will pre-approve almost anyone. I think the requirement for pre-approval is a heartbeat and consciousness. Maybe even less.

Home buying isn't for the faint of heart, but stick with it, get them everything they need as soon as you possibly can and good luck!

What sort of repairs are you doing, and have you ever done it yourself before? 

Be reasonable with your expectations, but stick to your time line unless you have something major that pops up. Do it right the first time and you don't have to do it again. I wouldn't be overly concerned about doing it quickly. 

I assume you are talking about flipping. Flipping takes a lot of time. You want to be known as the guy who does a beautiful job, not a half-baked one.

That said, what types of jobs are you looking to make go faster? Hanging upper cabinets in the kitchen can go faster if you screw a 2x4 into the studs to rest the cabinets on while you secure them to the walls. Especially if you are truly solo. 

Using toilet bolts that don't move around as you try to line up the toilet can make that job way easier, too. 

Get a thicker roller cover and roll it slowly up and down the walls as you paint. The thicker cover holds more paint, the slower motion allows paint to really saturate the wall, filling in the low spots on the texture and, if you do it right, you only have to paint one coat. Use a good paint - I like Behr from Home Depot.

Take your time and do it right. As you do more, you learn your own ways to make things go faster. 

@Seth C. I guess I'm having a hard time understanding the question. Are you looking to forego a home inspection and do it yourself? Are you asking if there are things to look for when viewing a house, that can help you decide if you want to make an offer on the property?

What @Bryan Williamson said about everything and nothing is correct. The risk of hidden defects is everything. You could have structural damage hidden somewhere that could cause the property to be uninhabitable. 

Can you rephrase the question or give more information? Thanks!

She has been there so long, and she has so much stuff, she really doesn't want to move. She might be slightly deluded. She may think that if she doesn't sign the new lease, the old one is still in effect or valid.

I would absolutely not cash the check. I would send another letter reiterating that she was supposed to be out on XX date, and you are starting the eviction process. And then do it.

I don't know what an eviction costs in PA, so sorry. But I hope it is low cost, and quick. Good luck!

DO NOT CASH HER CHECK!!! I am pretty sure that if you cash her check, you are accepting her rent payment or partial payment, and you cannot begin the eviction process. However, I am not in PA, so I don't know the laws of that state. 

Did you provide her with a lease stating the new rent would be $800? If you gave her proper notice (75 days vs 60 days sounds like proper notice if 60 is the requirement) how does your state handle tenants staying past the end of their lease? 

How long has she been your tenant? Is this a recent purchase, and you have had it for 75 days, or have you been dealing with this for a while and just decided to act now? I don't think it really matters either way, just curious.

I would consult an attorney in your area who is familiar with evictions. What is to say she will find another place in two months? Most likely, if you continue to accept her living there, she won't find any other place. If $800 is market rate, every month she can squeeze a $399 place is a win for her.

Yes, the hoarder thing will make it more difficult to get her out, but I don't think the courts see it as a reason to let her stay longer. You will probably need several dumpsters to trash out her place. She could surprise you and take it all with her. But don't bet on that.

Document everything. If the eviction goes through, having thorough documentation just makes things that much easier for you. Good luck!

@Mary lou L. In my big box home improvement stores the luan board is in the same aisle as the lumber, plywood and particle board. 

If you only need a quarter inch, maybe something like paneling would be better. I think luan board is 3/8" thick? 

Time and again I see posts where the investor hired a horrible contractor. Or can't find one to call them back. Or can't even find one to begin with. It is so difficult to find someone who knows what they are doing. I would rather do it myself. I know what I am doing most of the time, and I have YouTube for when I don't. I got tired of paying twice for the same job, so I just learned how to do it myself. 

I don't flip multiple houses at a time, so take that into consideration.