All Forum Posts by: Tom T.

If it were me, and I was prepared to put it on the market, and mine was in better condition... I would list it for more and sell it on the fact that it is better than the other comp. Either way I'd win. IF the other property sells a new precedent would be set. (raising the market) If my property sold for more. I'd take the profit and book a cruise. Aloha!

Ill add another factor to consider and that is this:
Which properties will appreciate faster (thinking about school districts, demographics, jobs in each area etc) and which properties will you be able to perhaps improve some and increase the rents?

Second thought to consider: Laws and procedures in each area for eviction should it become necessary. Some places are much more difficult and time consuming to evict. Not sure what class props these are but something to consider.

Out of state rentals, without the help of a property management company is a tough nut to crack. IMHO. Especially for someone with little experience. 

Originally posted by @Mark Holencik:

I learned a valuable lesson from my dad. He was selling an item and a man asked my dad if he could do better on the price. My dad looked at the man and said "yes, and raised the price.

I was around 11 or 12 at the time. When someone asks me that, I instantly think of a higher price.

Your price only has to be right for one person.

- I have used the above with a different twist..  that is..
When someone asks for a better price. I  then raise the price. The other party says. "Hey, that's not a better price". My reply is "guess it depends on your point of view now, doesn't it?" :P

Couple of random thoughts...

I would probably try a hybrid approach. Take the one appraiser of the three you already paid for who honestly seems the closest to what your research comes up with. Attach the paid, "official, licensed" appraisers work with your own. I would also expect the lender to want to have it appraised by his own people and expect you to pay for it. I would not expect him to take your word unless he is familiar with the appraiser you selected. 

If it works out, then you may have a lender for not only this but future transactions. If you walk in there with the highest possible appraisal and wild comps your credibility at least will be on the line with that lender...  Finding a good lender you can work with is important.

Couple of random thoughts;

since it is all negotiable to a point... and the bank has yet to accept... I don't believe it is a done deal yet? (not 100% sure of the nuances of a short sale)

If the sellers are in need of a short sale, they don't have the strongest negotiating position...

I might ask for more time for the stated purpose, or you might have to withdraw....
If they push back perhaps offer more consideration ie: maybe you put more earnest money into the pot to show how serious you are or maybe pay for an option? I would not go to the pay for the option route unless it was a pretty good deal. 

Back to the point, even if the sellers agree... since the bank has yet to approve it may all be moot? 

Lots more things to consider. If I were you, I would probably sell, take the money and move to Idaho. 

Being a landlord can be challenging. Do you plan on managing it yourself? Could you evict someone?  Do you have the stomach for it?  How will you react if you get a bad tenant who does not pay and trashes your once "home"?  Will you hire a management company instead?  If not, do you know what the eviction process is and about how long it may take should it become necessary? Will you go and fix a leaky toilet or will you hire that out? etc..  All things to consider when entering the world of the landlord.

If you are good with all that then maybe so. We have not talked numbers and cash flow.

As far as flipping etc. It is not like you see on HGTV. You will need honest contractors who will work reasonably. I suppose you are taking this on as a self finance en-devour? If not, that's another world you will need to become familiar with (banking & finance of rentals & flips) Plenty of people on BP that can "lend" a hand with that I believe "pun intended" 

Admittedly, I like real estate and rental returns better than the stock market but there are a lot of details that eat into your margin. (and time) to consider.

Cashing out and moving to Idaho is much less stress.

you could become an agent yourself....

Realizing that people always want a discount before anything happens is a reality. It is after all "all negotiable"  A good dedicated agent IMHO is worth the 6%.  Finding a GOOD one is the much harder part.  Once you find a good one I might suggest asking something along the lines of. Hey, when I do my third home over xx$$ can we reduce the rate a tic? and approach it that way.    A good agent will not reduce the rate on the front end on a promise of future business but once you do a few deals and BOTH of you see the value in the others time and energy. Maybe then. That's my opinion.

Luck is what happens when preparation meets opportunity.
Make is a great day!

Try a mortgage broker who has a direct line with Fannie Mae and no overlays. I believe you can get up to 10 properties providing you have a good LTV and cash reserves. I know I had a hard time getting over the 4 property hump as that is what many overlays have 4 max. Like Chase and others... Once I found a mortgage broker who had the direct relationship with no overlays it gets me to the next level.

Luck is what happens when preparation meets opportunity.
Make it a great day!

I came across I guy who has a 4 bed rooms 2 baths 2000 sqft home who wants to sell it for $50,000 or do a rent to own on it.

* Knowing whether or not this is a "good deal" is something you will need to figure out.
If I were interested and I did not know. I might try and structure something like this.
* "I would agree to buy this property for 50k provided that it appraise for at least 55k and IF it passes an inspection with no material faults."
You could then go and get an appraisal. If it passes that test then go pay for an inspection.
All that should cost around $300-600 I'd imagine.
- I'd suggest you find a local real estate atty if you want some documents to get it written up in with. You could also go get a buyers agent from a real estate company who could help for a fee as well.  Consider all these costs as "educational expenses" if nothing else.

Another thing to figure out is. Do you have 50k cash? If not, or maybe you want to go the lending route?  You will need to find a banker and go through that process to make sure you are "qualified"

Do you want to live in this or rent it out or flip it...?  Does it require renovations? If so, how much?  If you wanted to live in it. That makes the lending processes much easier.

Hope that gets you started.
Luck is what happens when preparation meets opportunity.
Make it a great day!

I'd suggest selling. Maybe try and bump them up a tic but sell. Take the money. Pay the tax.

(I am not a tax accountant, this is only an observation. Please consult an accountant)
Selling now, I think your gain would be taxed at your personal income level.
You would have to carry it for at least 6 months to get to a year and a day to have any shot at reducing taxes. (Goes to Long Term capital gains rate which I think is 15%)
I think your tax now would be calculated by taking your net selling price less your payment price and adding any capital improvements (which I didn't see any of those).
It should be taxed at the owners, sellers income rate.
 A 1031 exchange (selling this property and getting another of higher value but similar. IE: another condo.. is another strategy but unless you want to get deep into the investing world.  I again suggest you guys take your profit and enjoy it. That is what I would do if I were you.

Luck is what happens when preparedness meets opportunity.
Make it a great day!