All Forum Posts by: Ryan Mullin

I'm strongly opposed to putting housing units there.  We have 5800 abandoned houses around the inner city that need to be rehabbed and these idiots keep building condos and apartments that no one but the builders benefit from.  That space NEEDS to be a magnet school / retail / office / tech incubator for start ups.  That would increase demand for housing in neighborhoods just outside of Mass ave like cottage homes, windsor park, springdale etc.  Thats what the city needs.  But...  it will be more condos.  Subsidized.  and "affordable" apartments.  aka section 8 and section 42...    we will see.  

@Todd Burton   Looks great...   you put out quality houses too.  Cheers!  

 Thats a great idea!   @Jeremy Pace  

Hello BP!  

This is a question coming from a real estate brokerage that sells investment properties.   Some people would call us a "turnkey provider".    anyways, this topic has come up many times in office meetings ( aka our office manager made me post this :)  We figured that this had to be a common bump in the road for many buying or selling a turnkey product. 

Sooo..   when we sell properties it typically works like this: We acquire, rehab and then rent the property.  Then, we offer it for sale.  Once its under contract our buyer will typically order an inspection (most get inspections, some don't..) 

Here is the problem:  Tenants don't like to deal with inspections, appraisers and contractors when they first move into a house.  Sometimes its not an issue but sometimes it can really be difficult to schedule and can also be an awkward conversation trying to explain why all these people need to get in the property.  Also, when / if the tenants do get annoyed with all the people going in and out AND they over hear the inspector pointing out flaws in the house they start thinking they have "ammunition" against the property manager and it can get ugly.  or just annoying. 

Possible solution:  We buy the property, rehab the house, the get the inspection on our own dime... Then rent the property, then offer for sale.   That way we have the inspection and a list of items we will repair up front to show the buyers.  This solves the tenant problem partially at least...  still will need contractors to come in and do the repairs and have an appraisal done.  

If we take it one or 2 steps further we could everything done before placing a tenant.  

However, as a TK buyer its obviously nice to have a cash flowing property right from the start.  Especially with financing in place. In our experience the first few months of that kind of relationship can set the tone for working with each other well into the future.  

Another problem:  If the turnkey provider orders and pays for the inspection, doesn't that make it look like they are trying to hide something or somehow being non-transparent..?  

When buying and selling rented and performing properties what is the ideal order of operations...    

• Rent, sell, inspect 
  
• Inspect, sell, rent     
  

and why?

Feedback would be awesome from buyers and providers!   Thanks BP!  

Someone puts the house under contract contingent upon inspection...   Inspections reveals some needed work.  Seller does the work.  Buyer's financing falls apart.   Seller now has an improved property so the price goes up.  

Also with the multiple offer situation if everyone is bidding above asking price the seller may just up the price based on unforeseen demand.  They don't sound desperate to move it...   

If something can go wrong...   it will!  

Sewer and water lines are THE HARDEST problems to identify before during or after purchasing.  Even normal inspections don't uncover these issues. 

You are right @Bob Romano Cap ex is extremely important to consider.  And not just putting it in your spreadsheet as a monthly expense, but rather having that 5,500 bucks in actual reserves for these types of problems.  

5,500 isn't a bad price either.  It can be 8k or 10k in certain situations.  

Just out of curiosity how much do you charge to manage an airbnb rental?

Looking to do something similar...  We actually just sold an investment property as a "turnkey airbnb" but I have no idea what to charge for on going management.  Any advice would be appreciated.  

I don't see any reason why you wouldn't just fill out a standard (for your area) purchase agreement and take that to a title company and ask for a closing.  Title should be able to walk you through everything.  

@Jovan O.  Send me a dm with the deal please.  

Section 8 is my least favorite thing ever.  

I love cheap houses.  Im looking to pick up a few under 30k houses to add to my personal portfolio here in the next few months. But just because they are cheap doesn't mean they will be ghetto.  Certainly won't be section 8.  

Im NOT buying any more commercial properties.  Love the idea of it but its a different animal.