All Forum Posts by: Aaron Wyssmann

Thomas is right on. In closing those funds should have been passed to the new owner. It is legally still the tenants money if there are no damage claims or other reasons to hold it.

Great question. I should have at least a yearly schedule to get in and see them but the more properties you have the more difficult that becomes. I now only check them if there is a reason to do so...not the best of answers though. If I'm in the area of one of them I do drive by to at least see what the outside is looking like and that give me an indication of whether I might need to go back for the inside.

Looks tough to be able to get that in anywhere without doing some demo. You're right that it will have to be within a couple feet of the sink. I think I'd forgo the cost of it were mine as they don't look all too bad.

I bought a house with some tenants who were on a lease with an option to purchase. In talking with them about their purchasing the home I found out some information as to why they did this option in the first place.  The backstory doesn't need to be mentioned here but basically, they have some debt from back during the 2008 crash that the only way to clear it will be for them to file bankruptcy or so he thinks.  In learning more about his past there is no way they will ever be able to get financing to actually purchase the home.  I know this tenant personally as he now works for my remodeling company.  I simply want to be able to finance the property for him and his wife.  

The purchase price according to the lease was $115,000, they paid a $1,500 option fee and the lease stated that they would get credited $200 per month for each month rent is paid on time.  They have paid rent for 16 months ($3200 credit). 

My loan APR is fairly low currently at around 3.5% but it is variable.

My initial thoughts are to do a contract for deed with the following terms:

20 year term

$110,300 principal

6% APR that can be adjusted based upon my rate????

Trying to create a win-win here for myself and for him.  Is there a better option?

Jeremy,

These are all great questions.  I can answer some of your questions for you.  You are right that in our market there are not a ton of good small multi family deals but there are some around.  If you are looking to do some house hacking you may consider a 203K loan where a property can be fixed up by a contractor.  The down payments for these loans are pretty minimal as long as it appraises.  

The easiest way to find out what things rent for is to look on Craigslist.  If you are interested in a house just zoom in on that general neighborhood or area and see what houses are listed for in terms of rent. 

The best place to find investors is your friends or family.  There are always hard money lenders but they are typically more expensive, which isn't a bad thing if you truly have a good deal.

I've never used them but I believe Parks & Jones here in town does them. I heard them speak at the local REIA and they seemed very knowledgeable.

James Babb welcome to BP. Sounds like you are getting a great start. You are definitely starting in the right arena of getting knowledge just be sure to follow that up with some action and know that you very may well screw it up a couple times before you figure it out. Just keep going.

We also use vinyl plank flooring. I've been buying mine from lumber liquidators. They sell several different thicknesses and I'm now using 4mm. The 3mm is just too thin. If you plan on doing several projects then contact them to become a Pro and you'll get a discount.

Patti Robertson is right on. If you've got a contract to close then go find a buyer. You can even try and find an agent who will list it on the MLS if you find the right one.

The great part is that wood floors are typically very durable. If this is going to be a long term rental then you are going to have to be ok with them not looking perfect. No matter what you do or put in the lease if the tenant doesn't care it won't matter. Now that comes down to doing your best to screen your tenants well. If you have time before your first tenants then buff them and put at least three coats of poly on them. I've used Bona products and they are good but you may want to check with some commercial cleaning companies in your area. I've got a buddy that owns one and they are able to get some super high quality products that are good on the west and tear. Just don't be disappointed when they don't look as good as new.