All Forum Posts by: Shaun Hunt

Update: The $200,000 home is my seventh investment property.  I'm just waiting on bank approval.  It's in underwriting, as we speak.

I just purchased an ugly 1995 Saturn XL2, the tires just passed inspection, the windshield was cracked the night before I purchased it, it has traveled 191,000 miles, purchase price was $500.

On the other hand, I am under contract for a $200,000 home.

After listening to @Tim Shiner podcast Show #221, I felt it was ok to drive around such an "ugly" "useful" machine. :)

Update: The appraisal finally came back at $222,000. The comps he used were from $176-289.

The tenant is willing to go up to $1,300-1,400. He has dogs and can't find a place that allows them.

I am still waiting on the banks underwriting team, however things are looking good so far.

I won't cash flow nears as well as my other properties, but it will cash flow.

Again, I appreciate your responses. :)

@Andrew Johnson 

That's a good way to think about it. Thanks for the reply!

So, I have this sickness that started about five years ago. It has now put me in debt over $650,000. The bad news is that my Realtor called me up and told me of a home that just came on the market. He felt like it was way undervalued and it would be an easy flip.

Because of my sickness, I took the bait and I am now under contract. :)

The home is listed for $195K. Chances are it is worth closer to $250K. I have been waiting on word from the appraiser for two weeks now. I hope to find out tomorrow what the supposed value really is. Three other realtors have wondered if it is a short sale because of the low price. My inspector said the same thing.

The current tenant wants to continue the lease, however, the price will have to increase. He has paid $900 for the past three years. Rent for that home should be at least $1,400.

Here is my plan. Pay $50K from a HELOC at 6% for the 20% down and rehab, loan 156K at 4.8%, keep the home for at least one year to avoid 30% capital gains, sell the home in a year and hope my plan worked to come away with at least 40K.

If I do this, I will owe just under 1 million. My W2 job pays only 52K. Chances are, my total assets would be clones to 1.3 million after acquisition. All of my other properties are cash flow properties, this one would be for appreciation.

I have a hard time seeing a potential gain of $40-50K go down the drain, yet this is quite aggressive.

Are there any other questions I should address or should I continue on this path?

So, I have this sickness that started about five years ago. It has now put me in debt over $650,000. The bad news is that my Realtor called me up and told me of a home that just came on the market. He felt like it was way undervalued and it would be an easy flip.

Because of my sickness, I took the bait and I am now under contract. :)

The home is listed for $195K. Chances are it is worth closer to $250K. I have been waiting on word from the appraiser for two weeks now. I hope to find out tomorrow what the supposed value really is. Three other realtors have wondered if it is a short sale because of the low price. My inspector said the same thing.

The current tenant wants to continue the lease, however, the price will have to increase. He has paid $900 for the past three years. Rent for that home should be at least $1,400.

Here is my plan. Pay $50K from a HELOC at 6% for the 20% down and rehab, loan 156K at 4.8%, keep the home for at least one year to avoid 30% capital gains, sell the home in a year and hope my plan worked to come away with at least 40K.

If I do this, I will owe just under 1 million. My W2 job pays only 52K. Chances are, my total assets would be clones to 1.3 million after acquisition. All of my other properties are cash flow properties, this one would be for appreciation.

I have a hard time seeing a potential gain of $40-50K go down the drain, yet this is quite aggressive.

Are there any other questions I should address or should I continue on this path?

@Demetri T.

Hey, I'm interested to see what has happened over the past 9 months, in regards to the cat.  Do you care to share?

http://www.ksl.com/?sid=41644556&nid=148&title=sal...

NALS Apartment Homes denied the family permission to keep the boy's assistance animal after his doctor refused to assume liability for any possible damage caused by the animal. In addition, the owners will pay $25,000 to set up a settlement fund to compensate anyone else who might have been harmed.

How can I avoid this? I have a no pet policy, however I have been approached by those with a signed paper from an online doctor that says someone in the household needs a comfort animal. The animal has had no formal training other than what the owner has provided.

I get that people love their pets.

I am sure this topic has come up many times on this forum. I will continue to dig and read more. I would appreciate direction to threads on this topic.

Not knowing the whole story and not trusting that these few paragraph are accurate, the article tends to make me feel for the tenant. The owner discriminated because it allowed other pets without an RX and didn't allow certain pets due to the fact that the dog didn't have an RX and the owner had special needs.

Does it depend on the state you live in whether it is legal, or not, to exclude a comfort animal and/or a trained service dog?

While conducting an inspection, I found out that my tenant's mom has moved in. She is not on the lease. She is single and gets vey little money each month. She smokes. The rental is non-smoking. She has been living in the home for several weeks. The tenant has said his mom doesn't there, which was a lie. His six year old daughter is the one who mentioned that grandma was living there.

The rent is current, however it is usually paid a few days after the fifth. Rent is due on the first.

Tenant said he would mow lawns and pull weeds, however the back yard looks like a jungle and back the lawn is dead.

Tenants claims they have been looking for a place for his mom to stay. I am not sure how accurate that is.

The lease agreement allows for guests up to two weeks.

What are some of the things that the Bigger Pockets community would do?

Kick mom out?

Sign her up on agreement?

 Let it go?  

Thanks in advance.

Update:  I sent the results of the inspection to the tenant and got a nasty phone call back.  I made mention that they were in violation of the no smoking on in house or on property.   I also made mention that his mom was subletting and that is not allowed.

The inspection letter wasn't accusatory. I did mention that there were fines for smoking and the tenant took that as a threat and got all upset.

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