All Forum Posts by: Jennifer Ryan

Sorry... Compiled my response last night & didn't see Christian & Marc's FHA note.

@Evan Smeenge Hopefully you are aware that FHA only guarantees "primary residence" loans. The only way around it for an investor is do what it looks like you are; buying a duplex, triplex etc. but you must occupy one of the units for at least a year. At closing, you will be signing several docs stating that this will be your primary residence…

Having said that, your numbers seem correct but, per the consensus, not doable unless you can pick up a few hundred more a month. Start by narrowing your numbers by whatever you’re rolling into the loan. And consider, is it necessary to pay all of the utilities? Maybe the tenants pay the gas? Can you charge a little more for both parking & rent? If not, then offer accordingly or walk away.

Happy outcome to you...

@Louis Van Der Westhuizen

Glad to share some insite.

If the death were from natural causes say, an illness, most buyers won’t care. So purchasing the property would depend on the circumstances of the death.

In most states you only have to disclose a violent death like a murder or suicide or death resulting from a defect in the property. I’m in Texas so it may be different where you are.

Here’s the rundown & I’m paraphrasing: you have to disclose anything that would cause a “prudent” buyer to not want to buy a property I.E., a violent death like a murder, could mean that the neighborhood is bad or say, the home owner was electrocuted. There could be faulty wiring.

If you know that someone passed away from natural causes though, you may not lawfully have to disclose it, but you might anyway because I can guarantee you that if the neighbors know about it, they will tell the new occupants.

Lastly: there’s something called a “Stigmatized Property.” Google it. In most states, you have to disclose a stigmatized property. In a nut shell, it’s a property that has notoriety attached to it. An example would be a property where everyone in town thinks it’s haunted.

A longwinded answer but I hope it helps.

Hi Anita,

Unfortunately, in tax sales in Texas, the owner can indeed buy or more correctly, redeem their house back.  They have a 2 year right of redemption period after the sale. 

Should they decide to redeem, they have to pay you interest on top of the tax amount you paid. If it's in the first year, they have to pay you an extra 25% in interest and in the 2nd year, they have to pay you 50% interest.  That's not a bad ivestment on your money...  

The negative, is that you have to figure out what to do with the property in the mean time.  And if they are occupying the property, you'll have to resolve that as well. 

For obvious reasons you wouldn't want to rehab the property until you know you'll get to keep it so if it's vacant, I'd clean it up and rent it.

As for finding it on Zillow there is a good possibility that it really isn't listed since Zillow is nortorious for having old listings linger forever. 

If you email me the address, I can check the MLS for you.

Hey Sam. The only dumb question is the unasked question…

I Love being part of the MLS. That's one reason I got my license. The data is more accurate by far since Zillow notoriously keeps things on there that aren't on the market or sold years ago and their comparisons are often; apples to oranges.

With the MLS you can go in and select the " most like" properties to the one you're buying or selling and do your own market analysis. I do traditional CMA's (comparative market analyses) on every property I'm interested in.

Plus there tons of extras if you join NTRES (North Texas Real Estate Information Systems) Like a tab called "Realist." I use it every time I'm researching a property. It pulls similar things you'd find on the various tax assessor sites but you also get the mortgage history including past and current notices of foreclosure. Past sales, if it was ever listed. Tax accessor maps, market trends. Neighbors. There's so much on the MLS's other data collection sites that you'll be allowed to use too.

The caveat is, that you need to educate yourself on how to use the various software platforms and that takes time and commitment. If you try to wing it, you’ll get frustrated and it’ll be a waste.

If you do join, I recommend you sign up and pay for a few classes. The 1st being one on how to use the MLS & definitely take a CMA class. They can be taken at any board of realtors for like $45. If you're not a member of that board you'll pay about $10 extra. Google a board nearest you and search their site.

Flipping success to you!

Jenn Ryan

Hello Evan. Welcome aboard.

Michael,

Unfortunately break-ins and tools getting stolen are part of the territory in this business and it’s likely a coincidence. Consider getting some kind of app or security for the property that alerts you when someone arrives. Look into the app, "Alfred" as an example...it’s free

Sorry for the contractor though. His tools are his responsibility but if you have a special relationship w him you might help him out…

As to the MIA roofer, I agree you don’t want to reward him but if he’s not bluffing, it’s fairly easy to put a lien on a property; that will tie it up, and difficult to get it removed. It may not show up for awhile but, since you’re refinancing you may not want to take the risk. You might offer a settlement of $100-$200 and have him sign a, "Paid In Full"statement. 

Hi Joseph.

Most landlords and owner-landlords in the DFW area require their tenants to pay their utilities including; gas, electric, internet, water/sewer however, some landlords; especially for apartments will the pay the water & sewer for their tenants.