All Forum Posts by: Paul OConnell
Paul OConnell has started 2 posts and replied 58 times.
Post: Insurance on Rentals
- Property Manager
- Farmington, MI
- Posts 61
- Votes 20
They would have to re-build up to code if the work required permits.
Post: Need Help With Some Numbers - Auction Price compared Assessed Value
- Property Manager
- Farmington, MI
- Posts 61
- Votes 20
Also, keep in mind that foreclosed properties are more likely to have deferred maintenance, which may be making up for some of the difference too. In many cases the owner couldnt afford the loan payment, so he surely wasnt putting a new roof on.
Post: Stacy Kellams: Tax Sale Arbitrage
- Property Manager
- Farmington, MI
- Posts 61
- Votes 20
What does unclaimed property have to do with tax sales? Am I missing something?
Post: CitiFinancial wants $25 for PayOff Statement
- Property Manager
- Farmington, MI
- Posts 61
- Votes 20
FYI the bank also has to pay to release their lien, they will sometimes charge for that too!
Post: Finding GRM
- Property Manager
- Farmington, MI
- Posts 61
- Votes 20
This is a very old post Chuck, but it would be interesting to see how some of the investors that were paying over 100x their rental stream are doing now. Have their rental rates been hurt by the busted real estate bubble?
Post: Primary to Rental
- Property Manager
- Farmington, MI
- Posts 61
- Votes 20
Originally posted by killrtiller:
I have just accepted a job several states away and would like to convert my primary residence into an investment property. I have been reading all across these forums and google, but I wanted to post my "to do" & "unanswered question" list for our resident experts to analyze and let me know what critical step I'm missing.
1) Get landlord insurance instead of home insurance
2) Interview and find a good PM (Lynchburg, VA - anybody have a lead?)
3) Do I have to contact my bank? I'm assuming not as long as I personally am still paying the note.
4) Accumulated approximately $3k in "safety net" funds earmarked specifically for the house for vacancies/repairs. Will be added to on a monthly basis up to about $6k at which point I'll put more towards the mortgage. I don't need cash flow, I just want a paid off property in 15 years.
5) At this point I am not interested in setting up an LLC. I don't have major equity or assets at this point - good luck wringing a drop out of me now! I would set one up within 2-3 years though once I find a good attorney.
6) Would the PM handle lawn maintenance in their 10% cut? Or is that extra?
7) Do PM's send you monthly statements? How do you settle up on extra maintenance costs?
I appreciate the advice guys, thank you!
Congrats on the job! I only have a little input on a couple of your line items:
#3 Read your note. You can probably get away with not informing them, but some crazy notes have been written in the last 10 years.
#5 I would not set up an llc on this. The bank would likely require you to re-finance instead of letting your llc assume the mortgage. There is a very good chance this would be at a higher interest rate since this is an investment property.
Also, remember your property tax bill will likely go up as this is not your primary residence anymore. It would probably be easier to volunteer that info to the municipality, than taking the chance that they figure it out later and charge you interest and fees.
Post: Company Name
- Property Manager
- Farmington, MI
- Posts 61
- Votes 20
You may want to check godaddy too if you are thinking you (might) need a website.
Post: Is it worth getting a brokers license???
- Property Manager
- Farmington, MI
- Posts 61
- Votes 20
Originally posted by J Scott:
Agreed that those are definitely some PROS of the decision...
But the CONS are the increased liability, the increased upfront expenses (MLS access, insurance, broker fees, etc), the increased paperwork, etc.
Though I certainly agree with you Randy that there are some clear benefits...I think each investor is going to have to weigh their particular circumstances. Personally, we haven't yet decided which way to go come October when my wife is eligible...
Welcome to the forum, btw!!!
Any idea what the actual costs of thsose things are? I am looking to potentially start a brokerage llc (just to hold my license) and know what the state licensing costs are, but I don't have a feel for what the insurance and MLS costs are.
Thanks!