All Forum Posts by: Ryan Logsdon

My friends and acquaintances who do this constantly say they target out-of-state owners. ...That those are the ones with the biggest headaches.

In a 4plex that I was going to buy but didn't, the 1 and only bathroom of 1 of the units was converted to a grow house.

The tenant was exceptionally nice though. He had wanted to buy the building earlier but pulled out of the deal when he found foundation problems, mold in the walls, and sewage line problems ... and the story checked out after, those 3 problems did exist!

Upstanding drug dealers. What's next?

Junior Salters I won't look at a property in person until my offer's been accepted. I wasted too much of my time with that when I began.

Just write the normal contingencies into your offers, and you'll be safe. You can spend your time inspecting the property after the 1st round of negotiations.

Check out the first 3 of these 4 contingencies:

http://www.biggerpockets.com/renewsblog/2010/03/31/contract-contingencies-and-4-rules-for-using-them/

I also require 2 additional contingencies:

1. that the seller cannot admit new tenants without my written approval (ie: a family member of theirs)

2. that the seller cannot adjust existing rents without my written approval

...you do understand that you've just provided the proof. This forum is not private. It's indexed by Google.

100% agree.

Dan,

It's free money. The tenants will pay for 11.5 months in an 11 month period and, as you mentioned, they'll be highly motivated to keep the place in good condition.

With 6 weeks of lead time, that should alleviate any stress of needing to screen new tenants. And with the current tenants paying longer than their stay, it decreases your vacancy rate (when does that ever happen?)! There's really no downside to this give and take. You'll come out as the good guy and depending on how quickly you can place a new tenant, you have a good chance of coming out with higher cashflow.

Eric,

Get pre-approved from a first-tier bank: B of A, Chase, etc. Their underwriters will vet you; they will not offer you anywhere near the interest rates of a fly-by-night online lender. But that's not what a pre-approval letter is for. That letter will get you in the door so Wayne doesn't throw your offer away at first sight.

Once you've submitted an offer and it's been countered, then shop around for your loan. You're under no obligation to work with the bank that pre-approves you.

Good luck.