All Forum Posts by: Shawn Parsh

I'll try to keep this short, but I wanted to share how I came across a new property that I just signed a contract on. A neighbor of  mine stopped by the house when he was driving by just to chat for a minute or two. During the conversation he mentioned that a lady who is the administrator for the estate that owns a mobile home  located about 1,000 feet from my driveway was getting ready to sell the property.  The next day I decide to go to the mobile home to meet the lady and to inquire about the home. 

I knocked on the door and stepped back a little ways so she would feel more comfortable coming to the door. I introduced myself and told her that I live just a couple houses down from her. I explained that another neighbor had told me that she might be thinking about selling the house and asked her if that was correct. She said there is no thinking about it, I'm selling it. She then showed me the property. After looking at the home she said I have to tell you something...(paraphrased)

/before you knocked on my door I was praying and something told me to cancel my appointment I had with a realtor today, get a glass of wine, and take it easy for the afternoon. Right after I cancelled the appointment, got my glass of wine, and sat down you knocked on my door and asked if I was selling the house./

At that point this nice 72 year old stressed out lady started to cry and said it is amazing how God works. She lives several hours away and has been here at the house going through its contents, trying to sell what she can, and then sell the house. She said she has been missing her medical appointments back home and was overwhelmed by everything. This home needs some rehab and she was concerned it was going to complicate her effort to sell it. Then I knocked on the door and I specialize in distressed properties. 

I would be interested to hear if others have had similar situations occur. 

Thanks Carl, I will check it out. 

Can someone please tell me if you have to be a pro account member to list for sale by owner properties on BP? Thank you in advance. 

Katlynn,

I have always tried to buy the ugliest house in the neighborhood. I have a flip that I recently finished that is now on the market that is located in a rural area that is not technically in a neighborhood. I like the properties that when I start fixing them up I have people stop to tell me how good it is looking. The new flip I just started working on is in a small town, but once again it was the ugliest house on the block. 

Maria,

You have been given a lot of advice so far, but I will add my comments. I believe you have to compromise. If your spouse wants to own the home you live in and you want to invest do both. I don't understand the thought process that investing in real estate to rent is a good investment but investing in a  home to live in is not. You could flip houses to pay off your personal residence quickly or just build up rental income to pay off your personal residence quickly. 

On another note, I would not buy any investment property to rent that did not cash flow. I'm not sure why anyone would. Yes you have to pay taxes on income, but who cares. Get a good CPA and enjoy the income you get to keep. Also you can buy properties on your own without your spouse if you can qualify for the loans on your own. I buy all of my properties in just my name. My estate plan ensures everything flows to my wife when I die. With the properties just being in my name I don't have to bother my spouse with going to closing and signing paperwork. Good luck. 

Benjamin,

I would not own any investment property in my own name. You can either buy it in an LLC or buy it in your own name and then transfer it. If you do not have a good CPA and attorney that have extensive experience in real estate I would get them. Then provide them your details and listen to their advice. If you leave the property in your own name anything in your name is at risk, including your personal residence, savings, and future income. Why take the risk...

Jonathan,

I knew a guy a while back that bought houses and then rented out each room to people in need of assisted living. He then hired nurses to work at each of the houses to assist the tenants. I know he was making around 2,000 a month per room. I would look more into the details of the company that is wanting to rent the property, and would speak with an attorney about asset protection. I would want to make sure that I was covered in the event someone got hurt on the property. Having said that you could make some serious cash with a good working relationship with the assisted living company. 

Nick,

I agree with those that said to self manage, and by that I don't mean you do all of the work. I would find a handyman to do the needed repairs as needed and someone that can show the property when needed. You can screen tenants, collect rent, and scheduled repairs from anywhere and it takes very little time. I have hired a lot of people over the years to manage my properties and I have never paid them an additional fee to re-rent the property. From my perspective if the property is empty they are not going to be rewarded for that they should work to find and keep good tenants. 

Jason,

I do not invest in your area, but I would suggest renting by the room. You will likely make more money then renting the whole house. Good luck. 

Jaclyn,

I agree with the comment that the numbers have to work for you. Do your research to see what you would actually make for each option. I personally would never buy an investment house that did not produce positive cash flow. As suggested you could also flip a house or two to generate the cash to buy a long term rental that will produce positive cash flow. There are a lot of distressed properties in the Atlanta area that you could rehab. 

I personally do not like the idea of taking a loan against my primary residence to buy investment properties. I would use that as a last resort. If you have a mortgage on your personal residence I would flip houses until you produce enough cash to pay it off. Just my thoughts, good luck.