All Forum Posts by: Nathan Gesner

It sounds as though you're stretching yourself just to get an investment, which means high risk. How long will it take to gain 20% equity and back out with the private investor? You're paying 8.5% interest until then with the hopes you'll qualify for a traditional mortgage. What if the market turns and the property doesn't appraise for the price you hoped? What will the 8.5% cost you? How long will it take to reach 20% equity? 

There are far too many questions for me to feel comfortable on this.

If the numbers are correct, I would put the money into renovations and hold it as a long-term rental. This enables you to get into investing on the cheap and start learning.

I just read your post again. There's nothing there to indicate it's a hypothetical.

If I were in your situation, hypothetically speaking, I would put that money somewhere safe while educating yourself on real estate investing. It sounds like you're missing the basics and you're asking complete strangers from other parts of the country on how best to invest $700,000 in Orlando.

That's hypothetically foolish.

Craigslist is where scams go to fester. Use software like TenantCloud that allow you to manage your properties for free, including marketing to various websites.

You already know it won't bring an increased return so why bother? Tenants can use it as a hobby room, man cave, or storage. It's less for you to deal with if you ever have water damage.

Tenants will act like your buddy...until something goes wrong. Treat them like customers, not friends. Be kind, but professional.

There's no need to communicate with them often. Even if you send an email once a quarter, they may find it intrusive and they may paint a rosy picture while simultaneously trashing the place. Don't waste your time.

If you screened them properly, an inspection once every six months should be sufficient.

Don't raise the rent. Bill the tenant for the work and expect them to pay it in full within 30 days. If they refuse, evict them and then use the deposit.

There's a very good chance the interior is in bad shape, as well. I hope you're prepared.

You can start by getting a job that pays better. I'm not trying to insult you but if you make 1/2 the average income of an American employee then I would say you lack the skills, life experience, or capital to take on investing. 

I know a kid that bagged groceries and he managed to save $50,000 and buy his first home. He ate Ramen noodles and oatmeal every day. Anything is possible if you sacrifice enough.

Yes, get it in writing so there's no confusion or legal ramifications. If the son is still there, evict.

The lease should automatically convert to a month-to-month tenancy. I believe the laws of North Carolina allow you to terminate with seven (7) days notice but I recommend 30. Wait until they pay rent for December (if paying by check, wait for it to clear) then hand them the notice immediately.