All Forum Posts by: Pam R.

Hi Jaime - Welcome to real estate investing!

The primary concerns many investors have with condos are HOA fees, board management and fiscal responsibility, and having attached neighbors who could bring down your values or rentability. It all adds up to the investor not having as much control as they would in a free-standing, HOA-free property. I don't own any condos myself, but plenty of people successfully use them as part of their real estate portfolio.

As far as where to get the best deal - wherever you can get it! Everything you named is a viable option. Just find the deal that is right for you.

Good luck!

We found a tenant had moved in a cat. She'd been there two years, lease had just kicked over to start year three, good tenant, paid on time...but we don't allow pets. We told her to pick: her apartment or her cat. A week later I called her, as we hadn't heard from her, and I told her she had until the end of the next month to move. No drama, no debate.

In fact, the other half of the duplex was for rent, and she had actually served me up the tenant for it. They were moving in that week. I had promised a $50 finders fee.

They left a week before the deadline, all their rent was paid, I gave them their $50 finders fee, and they even got their full deposit back, as the new tenant moved in 3 days after they left and there was no real maintenance required.

And here's the kicker - through some online social media investigation, I am 99% confident that the new, next door tenants had every intention of getting cats. In fact, I am 99% certain they actually moved a couple of cats in...and quickly moved them out when their friend was forced to relocate. Although we were very very clear on the no-pet policy, since tenant #1 had managed to sneak a cat, they didn't think it was a real rule.

So all-in-all, I was pretty happy with how the whole situation was handled. I didn't get vindictive, and neither did they.

Try your insurance agent. I had a similar issue at my home about 10 years ago, and my insurance agent sent a letter. It didn't work, but it's worth a shot. The agent has a vested interest in getting the tree removed.

Hi Edita. Well, the two you mentioned are definitely key. My hubby manages our properties, and I don't get the details of the preventative maintenance he does, but in our experience the best thing to do is keep an eye on the properties so little problems don't become big problems. He mows the grass, so for 7 months of the year he is there weekly to take a look around. He talks to the tenants and asks them if they have problems - things they won't call about they will mention when he stops by (leaky faucet, running toilet, etc.) We also write in our leases that we can inspect smoke detectors once a month, so we can enter the properties regularly and take a look around.

I'll leave the financial feedback to the folks who own far more properties than me. Although I suspect many will tell you the numbers are a little tight.

Here are my questions: how are you going to split the work after the rehab? For showings/rent collection/repairs/after-hours calls? It looks like you are going to split the profits three ways - are you splitting the work 3 ways? Are you forming a business (LLC), or are you doing this as 3 individuals?

I bought my first rental property from a guy who had owned it for 10 years with a partner - they were selling their portfolio b/c one of the partners wanted out. He was tired of doing all the work.

@Patrick - I think we're saying the same thing. The realtor can still sue - anyone can sue. That's why I said I wouldn't even pursue the transaction without the realtor signing a release for the transaction. Lawsuits are expensive, even if you don't lose. I wouldn't pursue the sale at all - just find another buyer.

Wow. Well, I'm not a lawyer, but you don't have a contract with that realtor. Now that doesn't mean she can't come after you - no law against her trying - but you don't have a contract.

That being said, it sounds messy to me. Here's what I'd do:

1. Keep listing and showing the house

2. Tell the buyers you've been talking to that they would have to get a release from their realtor to buy your property. Sounds like they have pretty solid ground to do this - the realtor behaved unethically. If they show up with a release, then you can talk to them. You just don't want to get involved in their contractual issues.

3. What about all the other stuff the realtor said - the delay for inspection, and you paying the closing costs? These may not be the best buyers.

Good luck.

Pam

@Adam - Submitted a bid yesterday on the property. $28k, we calculated $8500 in repairs. House has been on the market 9 days now, and apparently they hold all offers until the 8-10 day mark, and then give a response. So I should probably hear Monday.

Mine was a duplex. It worked out great - purchased near a large university, very easy to rent. We took our time and bought one that didn't need a ton of ongoing work: it's brick, on a slab (no basement), and is only about 30 years old, vs the 80yo duplexes on the same street. Neither side has been empty for more than a couple of weeks in the last 4 years. We're happy with it.

Hi all. Any advice/thoughts welcome here.

I've only bought/rented duplexes so far, so single-family homes are a new venue for me.

I'm getting ready to look at a bank-owned property. Have looked outside, and through the windows, and it looks in pretty good shape. Needs some paint, new carpet, I don't know what else until we get inside. But not bad at all.

The bank is taking bids for another day, so we'll look at the inside tomorrow and need to make an instant offer if we're interested. There are already multiple bids on the property they are holding.

It's a 3 bedroom/1 bath. Property taxes $1300/year. It's an ok neighborhood (close to some train tracks and a small industrial area), not unsafe or trashy. Rental potential is reasonably $700/month, probably more. But I'll go with $700.

Neighboring houses have property tax values of $80k and up, and the few with transfer records I can find paid anywhere from $80k to 130k (that $130k guy must be taking a bath buying at the market peak).

My thoughts: I can go in up to $40k - all cash. That's any combination of sale price + renovation cost. $700/month in rent, I set aside $300/month for insurance, taxes, maintenance, net out $400/month. We'd manage it ourselves.

So - good deal or bad deal?

Thanks in advance for any thoughts or suggestions.