All Forum Posts by: Tchaka Owen

Quote from @Scott E.:

 Nope. There was a law put in place in 1982 (if I recall). Bottom line: if you're paying your mortgage on time, no one will bother you.

Quote from @Jesse Beach:

@Jay Hinrichs I agree on the pricing, honestly this could be me listening to much to the property mgt team saying what they thought they should get, maybe time to make a bigger cut.  There is still plenty of room above how much the mortgage is.

Honesty and trust are important and it seems you're not getting that. Fire this management company and get one that will tell you the truth (even if it's a painful truth).

Quote from @Sean Dougherty:

"Purchase price will be adjusted according to the appraisal amount. But whatever the difference is between that amount and the aforementioned $520k, that will be paid to seller over time on a monthly basis. A separate contract will be drawn up for this transaction with terms to be determined."

No.
If you're so generous with your money, I'll PM you my Venmo and you can send a few Large in my direction. It is not yet your problem if the appraisal is low. It becomes your problem if the appraisal is low and none of the potential buyers have funds to cover the difference. Not only that, your statement above wipes out any middle ground. What if Mary doesn't have $20k, but has $7k to fill the gap? You just cost yourself (and me) $7k.  
A better approach is for your agent (or you, if not represented) to approach the sellers' agents (they represent buyers) what they intend to do if it doesn't appraise. Get them talking and thinking.

Nope. That's totally irrelevant.

Quote from @Nathan Ruffrage:

Hey all! 
We are looking at owner financing  our current flip. We have funded this flip with our own cash. 

Can we owner finance it and then get our cash back out of it by securing a loan on the property??? Thanks! 

Yes, it's called a refinance.

I agree with Bill's comment above, however I'm going to be even tighter with the numbers. The closing costs when you purchased, plus closing costs selling plus commissions will likely be higher than $10k. I'm guessing $12-14k. You didn't share how much you spent in rehab; using $10k, you're suddenly at $26-28k profit. You've owned the home for over one year, so gains are considered long term and will be taxed at 15%. Thus you're looking at about $4k of taxes. Is that worth it for a 1031? I say no. 

Good luck with whichever route you select.

Quote from @Evan Polaski:

For reference on the last point, I bought a property in 2012 for $20k, 15k to get rent ready, 850/mo starting out. All was great.  Raised rents a few times to $1030/mo.  Tenant moved out last fall, had to put in $90k full gut rehab.  Some of this was voluntary, and am getting $1800/mo now with no deferred maintenance, NOW.  But that renovation took literally every dollar of GROSS RENT I had made over the last 10 years, not including the roof from a few years ago, water heaters, turnover expense, repairs, appliance replacements, insurance, etc.

But what is the ARV? That's the missing part of this equation.

Quote from @Judy Sprinkle:

so if I understand correctly Satellite is no but the other towns are good if they are east of A1A? I live in San Diego so am unfamiliar with the laws there.Do you have a good realtor who is experienced in the STR market? We just bought a STR on the Panhandle & had a great realtor!

 I believe Kerry's referring to Satellite. Remember that about 25% of Satellite Beach is unincorporated (the northern part) and you are allowed to do STRs there. If you go north, there's some question about it. Ie, Cape Canaveral has a 7-day minimum unless you've been grandfathered in....but I have yet to find out who is grandfathered in. 

@Anthony W. - nothing wrong with condos (though some investors are biased against them) and nothing wrong with it not gaining tons in value as long as rents cover expenses and put money in your pocket. Here's my concern: more often than not, cash flow calculation does not factor in vacancy, repairs, capex, etc, etc. 
Is your $200-300/mo cashflow AFTER those have been factored in? If so, toss up....mainly because you might find something better in AZ. Then again, some parts of AZ are way more expensive than Indy. On the other hand, if you did not factor those expenses, dump it.

Good luck!

If you rely on Zillow, you will be a sad person one day. I almost NEVER go to that site anymore.

There are much better ways to get involved. Have you joined your local REIA? Have you reached out to wholesalers in your area? Do you have a trusted real estate agent you work with? Have you spoken with a few HMLs and have them on standy?