All Forum Posts by: Patrick L.

You are grossly understating expenses to come up with that cap rate.   1% for vacancy?   You mention PM in place but no management expenses in your summary.   $4k annually for maintenance/repairs?   I hope you never have to replace a roof.....even replacing a single HVAC system (out of 20 of them) would eat most of your annual budget.  

Bank has no incentive to take a lowball short sale offer if they have a sale date in less than 2 weeks.  The hard/expensive part is over for them so your offer will need to be close to market value.   

I prefer no pools in rentals.   There's a lot to break with pools and you really need to pay for a monthly pool service for both cleaning and chemicals to keep the tenant from destroying your pool.   I had one rental with a pool and I only bought it because I got a great deal on it back in 2008.  I sold it in 2015 at a great profit and reinvested that cash in 3 class C properties and tripled the cash flow I was getting on the one class B rental. 

I want a landlord reference from previous landlords, not their current landlord.   A current landlord will give a terrible tenant a good reference to get them moved out.   

If the contract says the appliances are included then put the damn fridge back.   It's not that hard.   

Hicks Knight in Tampa is a pretty good one for quiet title. 

This is why a DIL is not usually a great option when there are multiple liens.   Unless a lien is foreclosed out it's still attached to the property.   The 1st can negotiate a reduced payoff but nobody is forced to agree to it.   

You'll find that the unpaid principal is not the only cost in a foreclosure.  There is unpaid interest, lender paid taxes/insurance/property preservation, court costs and attorney fees, etc.    What the previous owner paid for is irrelevant anyway, the bank is going to try to get a close to current market value as they can.   If they aren't getting any offers then yes, it may be over priced.   Make whatever offer you feel is the price you want to pay and if it sits on the market resubmit it again.  

Here's one more to keep the thread alive.....it's been hard for me to keep buying decent stuff under $30k with the way the market has been.  

Duplex purchased for $25k

Rehab: $5k

All in, $30k

Each unit rented for $600/month, tenants pay all their own utilities (separate water and power meters, trash is on the water bill).  

 Well it's a corner unit at least.