All Forum Posts by: Scott MacArthur

Imo it's a good lease and landlord friendly. I use it for all my Texas rentals.

Are you getting a huge discount off the UPB or off of the market value? If homeowner has a good bit of equity then I would think they would most likely sell or refi once you start foreclosure instead of losing all that equity. I'd just make sure you get a good discount off the UPB and do all your due diligence. Taxes, liens, codes, bankruptcy, etc... Don't see much downside if it all checks out and you can buy a good bit less of UPB but I don't think you'll find many NPNs for sale with 50% equity. With that kind of equity I would think most note owners wouldn't be selling their note though. Be curious to know why he was selling. I sure haven't seen any with 50% equity and selling for a discount of UPB

Did you check to see if there was a sewer easement on your survey or title work?  I'd research that first to see if there is, then you'll have access to do the repairs.  I bet the city says it's yours and your neighbor's problem to sort out, been down that road.  Hopefully you have an easement, let us know what you find out.  I manage a property with a similar setup but haven't had to dig up the line yet

@Andy Webb - ah yes, those were the days.  I can still find a used one here and there sometimes but we are going to probably flip over to ductless mini-split systems.  More efficient, can control temp in each room, no duct work in attic, etc... With rising cost to meet building codes and standards for efficient new homes I've heard some chatter from one of the largest home builders in the nation that they may be going to mini-split systems in their new homes soon.  This would save money in numerous places of the construction and also enable the builder to have vaulted ceilings and such since there would be no mechanicals or ducts in the attic.  I've seen specs on these things where 1 condensing unit is able to run 6 rooms, all separate temp controls, and maintain around a 25-30 SEER.  Many other countries and commercial buildings are using them.  My next HVAC issue will be a strong contender for doing one of these units.  I'd love to have accurate temp control in every room.  The only downside I've found is you have to have a wall mounted unit in each room.  I'd take that over ceiling vents and hot attic ducts any day.

Bret, I'm familiar with most all of the duplexes in the city North of 820.  Let me know if I can help you evaluate.  What is the price you are looking at paying?  From the numbers you have given I'm assuming around 220K based on a 25% down payment.  Is it one of the 2 story duplexes?

Also, I would look at the current tenants very carefully and find out from the owner how they were initially vetted.  The only evictions I've had to do for my clients have been from inherited tenants.  Finding good tenants takes care of the majority of issues when it comes to managing rental property.  You can definitely self manage since your local, with the right contacts.

As a local investor I think it's too much to pay personally.  I don't see much upside to it.  Rents are at an all time high here, not much room for appreciation (especially in a duplex), taxes will go up as all these new values hit the tax roll, etc... If I'm putting 50-60K into a deal I better be cash flowing more than that and I always want to be buying into some equity as well.  

Also, if you have AC units running on R22 and one goes out you could have a significant cap ex expense.  There are very few places that have R22 condensing units left and you may have to go into a full 410A replacement which isn't cheap. That is something that is coming up more and more around here so we work that into our numbers now.

Of course, this all depends on your goals and what you are trying to achieve.  Feel free to reach out if I can help you with anything.  Best of luck!

I've seen it.  Great concept for the community as affordable housing is in demand and these homes are reasonably priced for new construction and have nice finishes and amenities.  As far as the duplexes for investors, I don't love the numbers in the mid 160's per side and $1295 may be tough to sustain in that area if you had 3 or more of these on the market at a time.  Will be interesting to see what happens out there.

@Carol Kohn There is an exception to the 6 month seasoning called delayed financing. Look at the link I posted in this thread under delayed financing exception.  I've done many of these over the last few years.

Mike, reach out to Brain Walden.  He is from Keller and specializes in this.

http://thejudgmentbureau.com/

Message me the address and I will run a rental and value analysis for you but you will need to estimate repairs.  Foundation problems can be simple or complex and cost to repair will vary greatly.  Is it slab or pier and beam?

What do you mean by the city says it's value is 90K/  Are you referring to the County's Tax Assessment value?  If so, I wouldn't go off of that for value.  If you need sales and rental comparables let me know and I can send them to you.