All Forum Posts by: Peter M.

I see a few of these every month from wholesalers with a 100k+ spread but like @Brian Pulaski said, ARV is high and repair estimate is low. Once you run the actual numbers or take into account HML fees you arent making money.

As @Dennis M. said, Dodd Frank has made it more difficult. Lease options or rent to own are known as executory contracts which mean the transaction is to be completed at a later date. As opposed to buying a house, as soon as you sign (or shortly thereafter) you own the property and the transaction is complete. Dodd Frank made and executory contract more than 180 days subject to a lot more regulation and disclosures. It is still possible but the amount of red tape you the lender/seller have to go through usually makes it cost prohibitive unless you are a big time player. On top of Dodd Frank, each state can make even stricter regulations that may apply in NJ that don't in other parts of the US. 

That is pretty similar to what I do as well. You can set up templates in most email systems that save time replying with the same info. I also only do showings at specific times to cut down on no-shows. Usually I list on Zillow on Thursday, have a showing Saturday and Sunday at different times and by then I have over 20 people who have come to look and submit applications. If people want I will email them the application so they can bring it filled out. 

If he breaks the lease or does anything illegal you can evict him but other than that you may just have to ride it out unless you do cash for keys as Will suggested. If you are really that worried do an inspection now with pictures so you have evidence if he does further damage.

Be sure to add a rider for foundation coverage if it's a slab. Most of north Texas is clay which moves quite a bit. Older homes used to be pier and beam but now everything is slab on grade because it is cheaper. Slab leaks are very common and can be very expensive. If it is copper pipe make sure the ground connection (usually attached near the water heater) is nice and tight. 

Agree with other posters about why it is high. Car insurance is high as well due to storms and the higher number of uninsured motorists. My car insurance for my wife and I with good driving records is more than some SFR homeowners policies. On the other hand, I had a hailstorm that came through in 2011 and I got a new roof, siding, and carport-I had only owned the property for one month.

Seems like someone pricing it to sell because they don't want to do the work themselves. By those numbers it could be a good flip or a decent rental if you did less work to make it rent ready.

I don't see why not but I have never bought a property from a trust. You would just have to do some more leg work to find the trustee and get him/her to agree to sell it. You would probably want to see the trust document to make sure the trustee actually has the power to sell it. Trusts are not official legal entities in the sense that it can make decisions like a person. The trust documents will dictate who the trustors, trustees, and beneficiaries are and what authority they have all been granted. 

I put wear and tear on carpet at 5 years. For me it depends on the age and quality of the rental. Nicer A-B units I would do the vinyl everywhere. Older B-C units I start to lean more towards carpet especially on the stairs where it is harder to make the vinyl look good and takes more detailed work. It is so much cheaper and I know the tenants will wreck it wither way. The part of Texas I am in is known for foundation issues so carpet hides the unevenness better. No matter what though I only put carpet in bedrooms, hallways, or stairs (unless the foundation was just complete garbage). Everywhere else gets either vinyl or tile because they are higher traffic. 

If it is just minor sloping and there are no foundation issues you could use a floor leveling compound then lay vinyl or laminate. If it is more than 1" of slope per 12' or you think it will continue to move with seasonal changes you might just want to stick with carpet. I'm not as anti-carpet as some people here seem to be but I prefer to put vinyl if possible. Stairs and bedrooms I usually carpet. 

Carpet has one of the shortest lifespans for flooring. If it is almost 30 years old, it needs to be replaced because it is well past its useful life. If the floors are level, look into doing vinyl instead. It may be slightly more but it should last longer than carpet and will hold up better than carpet factoring in tenant use and neglect.