All Forum Posts by: Vic Iyer

Did you do an inspection before you bought?

My basic advice: Avoid (My mantra is never) buy a property that is away rom your residence and depend upon expensive property management companies or Hotel programs to generate cash flows. I see a lot in my area and the owners dumping the homes (Especially condos) back after realizing they are losing $ big time

This is my observation. Condo owners in buildings that allow short-term rentals but have a hotel management program are struggling with high hotel management sharing costs (Some of them get only 1/4rd of the gross revenue and barely even covers the high HOA & property tax. Are these good buys? No! IF you buy and put it in Hotel program you would lose few thousand dollars a year and no ROI. Either the Hotel programs need to reduce their cut or the prices have to go down 50%. Lot of cities are tightening the belt for short-term rentals requiring licensing for short-term rentals, and special taxes. In some buildings if you don't use the Hotel program for short-term rental they will charge you $350 for stays less than 10 days making the short-term rentals not worth it. OVERALL, Too much supply of homes in buildings that allow short-term rental and prices that are not worth it.

It is important to know what the owner grossed on a property to assign a $ value to it. This could also give a rough idea on what the occupancy rate/demand cycle/pricing etc

Not seeing any slow downs in South Florida. On the contrary inventory is tight and homes are moving fast.

The issue is if auction.com advertises is as "OCCUPIED with no access" then it is likely:

Either occupied by tenants or owners

Or home has roof or other issues that they don't want you to see before closing.

Bidding without seeing is not recommended unless you know who is living there. If you have to do a cash for key you have to make room in your margin. Also, What if it has roof issues or mold issues that need extensive rehab. AUCTION.com is a shrewd platform used by  banks to dispose homes having roof/title issues . So watch out! I have bought many through auction.com. Unless I see a decent margin I wouldn't be buying homes without seeing them

Well, Banks have started tightening the belts on loans/Refi. The post COVID appraisals will be very conservative and shocking. The bank might insist on 40% equity. 

Of course, CASH would be the king

Why are you trying to do owner financing? If you are trying to entice a non-credit worthy buyer you are likely to face unnecessary issues. Doesn't make sense as to why you are heading in this direction. Consult with a good real estate attorney.

Jay,

 This has indeed gone to the bank. IF the bank refuses to pay this lien then the buyer has to step up and pay or else this deal will never go through. May be I Did not clearly state in my post.