All Forum Posts by: Steve Combs

I would compare fees. Often lenders will negotiate lower fees in exchange for referring more business. Also, lenders usually have high standards for their title attorneys. Realtor has probably had a good experience with that attorney and it may make realtor's job easier, but the realtor can earn their comission. All in all, unless there is a price difference, I would go with lender's attorney.

It depends on how many properties you have and how computer savvy you are. I don't really have clients that use QBM, a majority of smaller investors use QuickBooks to track rentals and flips. I have used accounting software so long, that I find most of the better known systems are user friendly. It may take an hour or two to learn the differences of each. But if you are managing a lot of rentals, I recommend Buildium.

But if you are looking for something simple, have a few properties and are not self-managing the property a well designed spreadsheet should work well for a lot less money than a software package.

@Jarrod Rayner thank you for service as well. I would suggest you talk with someone who knows VA loan qualifications. Generally, lenders want to see two years of rental income to count it or some professional track record of management ability. But VA loans have there own rules and tend to be more lenient. It can't hurt to try.

I have a 1 bedroom condo that is a rental. Cash flow works well.

I would focus on the numbers. If the investment return matches your objectives, than I would absolutely consider it.

As long as there is nothing prohibiting it in your state statues, any agreement between to parties is enforceable. So, if is written into your lease and he agrees to it upfront, I don't see why it will not work. Are you holding a large deposit to keep him from leaving without notice?

Regardless of the student loan piece, are you currently working? Will RE be your main income after school? If you do not have stable and predictable income now, I would wait on purchasing anything until you know your income can support the vacancies and repairs.

Investigate the HOA dues. In theory they should equal what you would spend on maintainence, insurance, trash, etc. However you might be getting charged for years of deferred maintenance. If the dues are right you can get the cash flow right. But don't count on appreciation. In my experience, condos and townhouses don't appreciate anything like a SFR.

The security deposit and last month's rent, if paid up front, should transfer to you. When the tenant leaves you will have to return the security deposit less any charges. If you don't get the deposit from the previous owner you will have to pay it out of your pocket. If the tenant paid his last month's rent up front, he is not going to be paying you his last month, so you should get that from the seller to.

As others have said, do your due diligence on the HOA. Is there a history of special assessments? What is the delinquency with dues? What are there reserves? Also, talk to some of the owners. Some condo complexes are passive aggressive towards rents, making their lives and yours difficult. Are the neighbors pleased with the operation of the HOA?

I would check with your attorney on what the garnishment laws are in your state. If you can't garnish wages or a bank account it will be tough to collect. But, it sounds like you have completed most of the process. What will it cost you to complete the process? If it is not that much more, you might as well complete the process. That way you might get something in return.

My question is where is your property manager in all of this? Shouldn't they have caught some of the damage before it got out of hand?