All Forum Posts by: Ryan R.

When the cost of a new roof is less than the risk exposure from a failing roof, which would cause leaks and collateral damage as well as detracting from the homes marketability to potential tenants.

A or C. I would find out who is willing to sign a longer lease and let that play into your decision.
In my opinion, B and D are trouble.

It can be a few things. Check the breaker to see if it was tripped. Check the door sensors at the bottom of the door and make sure they are lined up.

Jordan Lives, don't get caught up in trying to learn too much before you start. As a new investor, banks and realtors shouldn't be surprised that you are ignorant of all the terms, types of deals etc. Ignorance is not stupidity, it's just a lack of familiarity with the subject matter.

Here is my advice on getting started.
1.) Research and understand your market. You have to know what a house is worth where it sits and as it sits as well as how much rent it will generate. Shop the competition.
2.) Find a couple of good realtors that work with investors and are compatible with you. They can refer you to lenders, title companies, insurance agents etc.
3.) DON'T be afraid to make mistakes. Get your helmet on and start taking snaps. Get out there.

Patrick L., I have an uncle who used to be a bartender. When he would see people around town who had outstanding bar tabs, he would get them to offer (read coerced) up some collateral until the tab was paid. Needless to say he endued up with a lot of jewelry etc.

I wonder if you could use this to find out if tenants are really struggling or just playing games. Take their TV as collateral until the rent is paid; their willingness to do this will tell you how serious they really are.

There are a lot of people with money looking to invest in real estate right now. Put some ads on craigslist, talk to local real estate professionals etc. Find someone who will front you the money and split the profits.

If you really are running the business as you say you are, then this should be an easy transition for you.

Jocie, by performing improvements/repairs without tenants in-place, you will extend your holding costs since it will not be generating any income. The upside to this is that if done properly, you may be able to generate a higher rate of rent after your repairs.

As far as performing this work while tenants are in-place, it is possible. I put in new floors for a tenant that is in-place and she spent a few nights in a hotel. She had to pay for her hotel, but she got new laminate floors and the carpet that was causing her allergies was gone. I did this in exchange for her signing a long-term lease.

Sorry Jon, didn't see your post.

Thanks J, that's what I thought. Just wanted to make sure.

I want to buy a duplex that is in the first look period for owner occupants but I do not intend on occupying this property. My question is if I'm paying cash, does the owner occupant status still apply to me?

Marc Cesar, here is a good way to start learning values in your market.

Go to the hudhomestore website. Type in your state and county and look at the foreclosures in your area. Look at each house and write down what neighborhood they're in, how many square feet they are, how many bedrooms and bathrooms, their age, exterior facade, look at the property condition report and look at the listed price. Start grading properties based on all of these factors and assign a grade to each house, A+,A, A-, B+, B, B- etc.

Now when these properties disappear, it means they've probably sold. Go to the same website and click on the Bid Results link. Type in you state and county. If a property sold, it will show how much it sold for. Now write down how much this property sold for compared to the asking price. This will give you an idea of how much discount you can get in your area off the listed asking price.

Now, watch your local MLS for these properties to show up for sale or for rent. How much are they renting for? How much are they selling for? Sometimes investors will buy these houses as Owner Occupied and then immediately list them for sale. I think this illegal but it doesn't stop them in my area...

The point is, from your computer, you should be able to start figuring out what properties are worth.