All Forum Posts by: Thomas M.

Justin, just some general comments based on things said thus far. Some good points have already been made by other posters. Multi units have the better cash flow upside, but are much harder to sell down the road. Why are you looking to use a management company with your 1st property? They will charge you a higher fee than if you owned, say 10 properties. Just something to keep in mind. These areas do need investors, but there's many reasons, like crime and other factors, that make these properties so inexpensive. Make sure you have a great understanding of the condition of the property (what repairs are needed now and in the near future) before making your offer. Like Greg said, a roof is a roof no matter the rent. Best of luck!

I agree with Kolin as well, big variance by neighborhood/area.

Thank you for the feedback. Very much appreciated! I've always heard that buying on contract was a bad idea, assumed it was probably a bad idea to sell on contract as well because what Corey mentioned...they're hard to get out of/evict, etc.

I was approached by a friend to sell a house we're considering flipping to another person on contract. They have a large down payment (about 35% of the home's listing price) that they could pay us up front. This person can't get financing right now, but will likely be able to get a MTG in 2 years. So, we'd basically be the bank until this person can get their own financing. I think this person could also do the upgrades/remodeling.

I know nothing about selling on contract. 

What are the pros?

What are the cons?

Is it flat out a bad idea?

What would we need to put in the contract?

Thanks!

I agree with Renee R. 

There's a clear breach (6th tenant not on the lease) of contract.  If you want them out, get them out or at least get the situation fixed. If you think it's okay for them to stay, then let it slide for 4 months and take your chances with any repercussions. I wouldn't put myself on the line and take my chances.

Read your lease!

If you want to evict, it's pretty simple. It must be in the lease...you must prove where the breach of contract occurred. There's probably no need to pull credit to accomplish that. If you can prove there's a breach, no need to delay. You just have to follow state law guidelines & timelines.