All Forum Posts by: Adam Gollatz

Hey Pete, what was the company's name and did they have an actual tenant ready? 

I also had a similar thing happen to me about 3 weeks ago. Rent listed at 1100 and they were willing to pay 1400. They put me in touch with a woman who had a house fire and was staying in a hotel until they could place her/get her house repaired, but the company was only willing to sign a 60 day lease, with month to month after and 30 day notice. The tenant chose a different place, but I was willing to give it a shot. Let me know how it turns out for you.

Either raise the rents (if the market will support it), lower expenses (reduce water/electricity usage, shop around for insurance or lawn care, pass on to tenants if you can), or negotiate the interest/sales price/terms of the deal. It'll probably take some combination of all 3.

Have you done a full analysis on the numbers? Thats probably your best starting point.

If you have 500k to invest, I think you can find a deal with better than a 3.8% cap rate.

Two words, due diligence. What happened with your inspection?

Have you talked with your agent? A lot will come down to the specifics of the disclosures in the listing. Chances are they said something along the lines of "owner has never occupied the house" if its an investment/househack. If the house had any other AO's before you, there might have been a previous inspection done in which it was disclosed to the seller, and you'd have better chance at recourse.

The real answer is if this is something you want to pursue, talk to a lawyer. Maybe the threat of recourse will get the seller to settle and you can recoup something. Id say you're efforts are better spent focusing on fixing the problem.

Hope that helps, good luck.

Here in Milwaukee the owner is responsible for the water bill and the tax bill. If the tenant does something to incur a cost (leave trash outside, not mow, not shovel, etc) the fine will end up against the property and the owner will ultimately be responsible. The way we deal with it here is addressing the specifics in the lease with penalties (ie not leaving trash outside), screening tenants and setting expectations, and taking care of the things we can and incorporating the costs into rent (ie mowing the lawn and snow removal).

Honestly it doesn't sound too outrageous or out of the ordinary. Sounds like the village was mismanaged and just eventually getting caught up with the times. Hopefully if they arent incurring all these costs and the city gets better youll see taxes go down and the neighborhood improve which will translate to more money for you in the long run.

Lot more to look at rather than product/term and interest rate and depends on the individual. I could do better. A person with 400 credit score, no income, negative net worth, and 5% down, probably a good deal.

It'll be hard to prove that he had no idea or involvement since he was renting it to his daughter.

Having 479 pot plants over the limit is code enforcement jurisdiction and not a police action? Whats going on in California???

hard money or private money lenders. If you structure it so you basically finance the entire rehab and purchase with no money down, no hoops to jump through, and you dont have front or back loaded points, thats a golden ticket.

Any HML is going to want something down, they'll scrutinize the deal, maybe charge you for services like processing, credit check, appraisal, inspections, etc, want to see financial docs. Not to say thats bad, especially for your first time. Could stop you from getting into a bad deal, but it could also make a barely viable deal a disaster.

Thats why they call it the art of negotiation. If you're close to the city or universities, you should have a more or less year round market. If your dead set on the 6 month to get that schedule, present them with a year lease and a 6 month lease at a small discount with the expectation that it goes up if they resign. Chances are they resign because no wants to move after 6 months and you put them at ease with the rent increase.

Im going through a tenant search right now, and its honestly not that bad. Since 11/7 Ive had 18 responses on zillow, probably 10 from craigslist, and another 3-4 that just dialed my number. Id say maybe 10 were truly viable candidates.