All Forum Posts by: Adam Bartomeo

Advice... buy while things are on sale because they will not remain that way. The market will come back like it always does.

The seller does not have to disclose that the tenant isn't paying. Now, if they were asked to provide documentation, tenant ledger, and they changed what the ledger said, then you have a case. My guess is that you and your agent didn't know to ask for this.

So, you want your PM to do the dirty work and then ditch them? Very unethical...

@Sara Szo Personally, I am not a fan of STR's. It is a great time to buy for equity but not cash flow. I am buying houses still and putting long term tenants in them

An ounce of prevention...

@Ruchit Patel Thanks for reaching out. Yes, unfortunately, there are a lot of people like you who were taken advantage of Rent to Retirement and the builders they employed. I will do what I can to help.

The owner shouldn't be involved and the PMC should be handling this. This is what they get paid for. We give the tenant detailed information about what their deposit was used towards, and we answer any questions. After that they are on their own. If a tenant is overly communicating, we let them know that they are blocked from all communication except through email and text through their portal.

I always focus on worst case scenario and exit of cash invested.

1. I want to have a min of 20%+ equity the day I purchase.

2. I want to have enough room to be able to flip it.

3. I want it to cash flow with a loan of 75%.

If it meets all 3 I buy immediately. If it does not meet all 3 than I evaluate the risk vs reward to see if it is worth it. 

The owners of the LLC are all listed as public knowledge and can be found very easily. Trying to find the owners contact information becomes a little more difficult. Having a PM in place shields you a little better as you shouldn't have to disclose the phone number and email of the owner. This may vary from state to state.

I have had this discuss with many of my owners. There is a gap in accountability with insurance companies and HOA's. They have a lot at stack and they have a lot to lose. You can take the risk of denying the couple and them filing a suit for discrimination or risk the dog attacking someone and you being sued.

@Andres Montbrun Although, interest rates are still relatively low in comparison to the historic rates this isn't the issue. the issue is that we have left rates so low for so long that the prices have risen too high. Now that we have raised rates the prices have to adjust down OR wages have to see a large increase for Americans to afford the higher payments.