All Forum Posts by: Bill P.

You may be required to pay for the appraisal that shows them (mortgage company) the LTV to be removed. Can definitely be worth it if your PMI is outrageous like most.

@Kyle H. 

Welcome to BP. It seems you are on the way to real estate wealth.

@Adam Johnson 

I had only heard good things about Rent Manager as well. I saved it for last because I thought it might be the benchmark and their HQ is only 3 miles from my house. I am going to reach out to them again this week to see if the bad response was an anomaly.

@Zach Sikes 

My trial period with Buildium went flawless. Although I think they short themselves by having only a 15 day trial period and having a $40/month minimum price point, Buildium was the most complete property management software packages that I tried. If I had the normal need for property management, I would use this package in a heartbeat. However, my firm is focused on small syndications and the needs for me are a little different and Buildium has a difficult time meeting the needs. (Close but still a miss). I have sent positive comments to the Buildium team regarding possible improvements and will revisit them in 6 - 12 months to see if any upgrades have been met. But as I said, they are a really good product.

On a side note, the last package that I was going to try was Rent Manager but they never got back to me to try their product. I left 2 messages (1 online, 1 phone) and they have ignored my request. So I figure if that's how they treat new clients, I can just imagine how they treat clients with customer service issues. My two cents.

@Jason Hernandez 

I've been doing this for a very long time as my first one was in 1981. I use sandwich L/O, sub2 and land contracts to buy property in this crazy market. My goal is to do 15 per year as I am more interested in a slow growing business than getting homes that unravel if things go wrong. In other words, I make sure there is a positive spread for me in at least 2 of the 3 areas (front end, monthly or back end). Have taken a slower than normal process this year as my efforts have gone into obtaining multiple income sources outside of real estate. In my case, I never use a real estate agent as I have a personal preference to find deals myself. I have used birddogs in 2010 - 2013 with mixed results. I have traditionally focused on major markets in 13 states that border I-75 but I have shrunk my market to Cincinnati, Columbus and Dayton beginning in 2014. Basic reason is that having L/O in other markets over extended my management control and I got my *SS kicked in the Orlando market during 2008-2011 that taught me that I am a mortal. LOL. Anyway, I hope this information helps.

@Antonio McGuire 

I always am curious why the discrimination against felons as a class. First of all, they already paid their debt to society and unless they have a big red F tattooed on their forehead, I'm not sure why landlords have an apprehension against them. Second, while I read people's horror stories about renting to felons, I read a lot more stories about bad tenants who just happened to be regular people; does that mean we should stop renting to people? Third, perhaps the recidivism rate is so high because no one will give them a fair shake afterwards. If you can't find a job or a nice place to live, can you blame them for not being able to pull their life together. Fourth, the only reason that this type of discussion comes up is they are not a protected class. I remember a time where the same type of questions were written about blacks, Hispanics and same sex couples. Perhaps landlords also have a duty to be fair to all people. That's not to say you can't fairly choose your tenant by the ability to pay your monthly rent, but during this downturn I have run into a lot of people who fell on bad times by no fault of their own. Everyone deserves a decent and safe place to live. (BTW, I think it is 70% of all murders are caused by people who they know....I don't think that means we need to get rid of all of our friends and family) Lastly, if I read your initial post correctly, the guy is making a decent wage. As long as he is financially qualified and you do not have better candidates; why not make your life easy and just rent to him? You can always increase the security deposit through your own internal scoring method, but make an informed decision on your perspective tenants.

That's my two cents worth.

@Account Closed 

Real estate investing is about discipline. From what you have said here, I'd move on as your time is probably spent better elsewhere

@Ivan Ganza 

Every piece of property is different and because of that NO STRATEGY is off the table. You have to have multiple ideas in your head as that is the best way to snag properties. Some props need to be held as they can be cash flow cows but other props should simply be flips. Lease options, subject2 and land contracts work also. Have a property that I am doing syndication with to spread risk. Just be open minded and deal can fall into your lap if you work the business.

@Account Closed said, I'd certainly would check out the vacancy issue. Don't know much about Whittier NC but it seems to be in the middle of nowhere. I would also consider what your target audience might be and I would be skeptical of appreciation due to the age of the units. It seems the guy just wants to hand off his problem child. However, with that said, I'd find out if he would be willing to do 30 yr. amort with a balloon in 20 years as that helps your cash flow. $300,000 is a great place to be but be good to yourself as I fear that vacancy is a big issue, especially with 1/1 units.

@Nick B. 

Assuming that the proforma amount is correct and that the current p/l is correct as well, I would offer them a price point closer to a 16 cap rate ($306,000) due to the wide fluctuation of vacancy and the amount of work it takes to build up a good solid tenant base. Obviously, you can offer them more but why would you want to pay them for their laziness?

I'd appreciate if you would keep us informed of your decision.