All Forum Posts by: Ryan R.

Whenever someone is mauled to death by a pit bull, I can just see the owners bragging about how friendly their dog is...

The majority of fatalities by dog last year were from pit bulls.

http://www.dogsbite.org/dog-bite-statistics-fatalities-2012.php

Michelle James, what is your risk tolerance? Personally, I will drop the rent on my property to try and find a quality tenant than to desperately take any tenant I can find at a higher rent.

As you said, if you make a payment, you've just lowered your return for that year. Go ahead and drop the rent just a little bit and maybe you can find a quality tenant.

From my experience, a quality tenant will stay in place longer, take better care of your property and be more profitable in the long run than low-quality tenants paying top market rent. That's why tenants often leave; they find a better deal somewhere else. Make someone (quality tenant) a better deal than they already have.

Cathy Moore, check the "bid results" page on the HUD website. It will show you the accepted price for houses sold in your area in the last 14 days I believe. That may give you some good insight as to what your offer should look like.

I've heard that around 6% off of listed price is close, but that is only my assumption from research.

J Scott, Awesome. Just Awesome.

Daniel Fisher, I'm the type of guy who typically sees everything in black and white, right or wrong. This looks like the rare occurrence of a gray area.

What's this tenants history like? Is this a recurring issue that coincidentally happen to manifest itself on Christmas Eve? Or is this a good tenant who has fallen on hard times?

If this is a recurring issue tenant, I think the best thing you can do for them is kick them out on Christmas Eve. Perhaps the humility of the situation will finally sink in enough for them to make a change in their behavior.

If this is a good tenant who has fallen on hard times, I would be more amicable. If you are feeling any guilt you may stop by and talk to them, shake their hand, find out what is going on. This will probably give you some relief in your decision.

Regardless of what you do, no one can say you are doing the wrong thing.

P.S. When I was a kid, I attended school with a majority of children from low socioeconomic families. These kids received free lunch and breakfast cards for their meals. My parents were too proud to have the school pay for my meals, although we probably could have qualified. I remember on most mornings walking by the cafeteria and seeing those kids eating their free meals as my stomach churned. Through facebook, I've seen these same people still relying on a government handouts for their measly existence. When you take away the consequences of failure and laziness, you end up with today's society..

Actually I still have a lot of work left before I sign anything on this deal. Just trying to make sure I know exactly what I want to do.

Current market value = $75,000
Purchase price "offering"= $67,500
Market value after repairs = $100,000
She's told me that it recently appraised for $89,000. Based on our market, I believe her statement.

David Beard, do you think that's fair?

David Beard, as the buyer, I'm not going to offer the provision. Not that I am going to be dishonest either. But if I decide that after $8,000 I am satisfied with the rehab, I don't want to have to find more things to spend money on or have money sitting in an escrow account.

I was actually thinking of doing a walk through and listing out the exact items I am going to repair, replace with cost estimates. Although my total will probably be close to $10,000, I will save much of that by performing labor myself. Although completely willing to spend $10,000, I would hope to invest out of pocket $5-$7,000. Although I may not spend $10,000, the property will see an increase of at least that much; so she is still reaping the benefits if I default.

Also, the roof and A/C are less than 5 years old. New paint and fascia too. Exterior looks quite good. House was built in 89. Much of the improvement will be landscaping/rehabbing the sprinkler system, and interior paint/floors/appliances. House is only 1,200 sq feet, I've got some nice durable laminate that I can do the whole house for $2,400. I installed it in my current rental and the tenant loves it.

Sounds good.

So here's what I'll propose. Owner finance with 0 down but I will immediately invest $10,000 into the property. Balloon payment after 4 years with the intention to refi in 1 year.

House has been sitting empty for about 9 months, she lives a few hours away. I think she's ready to make a deal.

Kenneth E. good idea.

Jon Holdman, I don't see a problem with a year other than paying a little higher rate on the owner finance note. But why so long?