All Forum Posts by: Todd Curtis

One of the considerations for renting may be the learning experience. Whether you plan to manage it yourself, or have someone else manage it, the process of planning and preparing the house to be rented will make you more aware of other options you can have for that property and for future properties. You'll likely be exposed to a wider circle of real estate investors and professionals.

I found this to be the case with one of my family's properties. We planned on renting the property, with a sale as an exit strategy. Getting the home rent ready took more time and money than we planned, and along the way we realized that a more sensible option was to sell it with owner financing. The cash flow was much higher, and if the new owners had issues with paying the mortgage, we'd have the opportunity in the future to renegotiate more favorable terms or taking the house back for resale or as a rental.

Todd

One thing to look for in your potential properties are any restrictions that may already be in place on the property. I've seen a case where a veteran tried to use a VA loan on a condo, but it was refused because of HOA restrictions on renting out the unit. Do your due diligence for these kinds of issues before committing to the deal.

Todd

I'd do two things. First, look at the numbers to see what it would take to make it worth my while. Factor in your costs to make the deal happen, any costs to upgrade or repair the property prior to sale, your required profits, and a fudge factor for unanticipated costs or delays. If it all looks good even with the current financing, then consider move ahead.

Second, ask yourself this - after you set up the deal, could you assign it to a willing investor at a reasonable price? If so, then you have a built in exit strategy.

Todd

What struck me most about your deal was the setup of a cottage and a duplex. If the potential exist to rezone it into two separate lots, it opens up possibilities for the future.

Another question I had was on the financing. I'm assuming that the P&I was for a 30-year fixed, which would put it at around 4.25%. Any potential issues down the road that could change that rate?

Other than the down payment, do you have the cash for any potential repairs or renovations, and if not, would the terms of a loan for the repair be much less favorable than that on the first mortgage?

I have a 4BR 2BA rental on the east side of San Antonio that I'm thinking about selling, and I'm looking for some recommendations for an appraiser who has a lot of experience in that side of town.

Todd

As of early April 2014, Microsoft stopped supporting Windows XP, so if you have a Windows XP machine, it is time to move on to another operating system, because the bad actors out there are targeting these systems.

Since about half the operating systems out there run XP, it is a very juicy target for all kinds of hackers and scammers. Do yourself a favor and take steps to reduce your risk.

No compute is immune, but a combination of a more resistant OS and being careful about sites and emails (don't click if you are the least bit suspicious) will keep you out of most trouble.