All Forum Posts by: Patsy Waldron

Dang.... Auction.com is having a seminar in Akron on buying REOs that evening! :(

Way to be creative to find a way to make the deal work!!

I would respond politely (respectfully, even) laying out the whole situation (late signing = closer spots already taken, known congestion issues). People reading the reviews need to hear your side of the story and come to their own conclusions. Add some sort of solution (i.e. "If your daughter signs with us again, during the usual window, we will ensure that she gets a closer spot" or something conciliatory like that).

Creative solution for getting positive reviews- I read about a (non-RE-related) company that has a clause in their contracts that clients will post a review within X days of their transaction. Maybe you can add a clause in your lease about posting reviews within 3 months of moving in? Send weekly reminder e-mails with a link until they do it.

@Matt Jones

Fabulous job with this rehab. Kitchen looks great, I was surprised to read you had actually saved the cabinets!

Love the master bath.

I'd live in this house. :)

@Mark Nolan

Thank you for taking the time to share this VERY useful information on the intricacies of the solo 401k.

Especially good to know that self-managing is okay, though not compensated (I figured as much and wasn't planning on taking a fee).

The detailed info on non-recourse loans for the solo 401k was great. I hadn't realized that it could borrow from friends and investors. All of a sudden, lots of opportunities appear!

@Bob Collett

Thank you for sharing your thoughts on this! Your insights as a property manager are fantastic. I was all gung-ho on investing on the east side, but as I have communicated with investors who have properties there and read up on the areas, it seems there are a lot of headaches with the east side. I do love the east side to live in (Solon) but it looks like it makes more sense to invest on the west side (Lakewood in particular).

@Trenton Jackson

Good to know! Thanks for correcting my info.

@Dallas Schwab

Once you reach 20% equity in the property, the lender has to drop the PMI. The question for you, I guess, is whether the rehab will get you to (at least) 20% of ARV. If it does, and you refinance with a non-FHA loan, then I am pretty sure you are good to go to rent out all the units (though you may not be able to refinance until 6 months after the rehab is completed).

I am not familiar with the 203k loan, so can't comment definitively on cashing out at refinance, but I can't see why it would work any differently than other types of loans.

Looks like quite a project! I am following this to see how things progress and what the end result looks like. Good luck on the rehab!

@Dallas Schwab

"At that point I will have rented the units for good cash flow..."

If you take out a 3.5% down FHA loan you can't rent out all the units- those terms are for owner-occupied properties, so you will need to be living in one of them for at least a year so that you are not violating the terms of the loan.