All Forum Posts by: Account Closed

I was all set to make an offer on a 8 unit(4 modular duplexes) last Monday 'til I found out there was a sex offender in one of the units Sunday night.  I looked up his court case and found out it was for 4-5 years of molestation of his girlfriend's daughter from the ages of 6 to 10.  He appealed his sentencing and this quote came up in that case.  "In addition, the trial court noted several other aggravating factors, including xxxxxx‟s failure to successfully complete probation, his pattern of physical abuse toward women, his history of substance abuse, evidence of multiple instances of molestation toward the victim, and his violation of a position of trust."

He was sentenced to 5 years, somehow he only served 1 and got out.  The property manager tells my realtor on Monday that he told them it was a young girlfriend situation and that is why he is on the registry, I told them that it was bull and the real reason he was on there.  The property manager says he has been a good tenant for 2 years and is now engaged and goes to classes and is trying to get his life back together.  

His lease isn't up til February.  I haven't seen his application and see if he lied on it when talking about the sex offender status or he just told "his story" to the property manager and there isn't a record of him lying. 

It is currently bank-owned and we asked the bank if they would consider an offer contingent on them removing him before closing but they got back to us today saying they would not.  So here I am now.   

Just closed on our first investment property last week. It's a SFH in a gentrifying area (is that a word?)+. Did a bit of landscaping but otherwise it was move in ready. I had it staged and professionally photographed. The original intent was to rent it. The photos came out so well I decided to put it for sale as well at a price I didn't really expect to get. Both the for sale and the rental listings went live (MLS) late last night and I've had unexpectedly high interest for both. To the point where I now may have a real decision to make. Here are the facts:

Purchase price -$105,000

Cash outlay- $29,671.87 (includes 25% down, closing costs, staging, and a few odds and ends)

PI payment $417/mo (4.875% 30yr fixed)

Insurance $1200/yr

taxes approx $1500/yr

 Expecting approximately $2,000/mo rent

It's listed for sale @ $164,900

Also Note: I'm a Realtor I only would pay 3% to another buyer's agent if I sell

 If I were to get close to $165K would I be a fool to pass on that in lieu of the rental income? Now I'm trying to decide if I should hold off leasing it to see if I can get that price or if I should just see which opportunity happens first and jump on it. Thanks for the feedback. 

I see what you mean @Jay Hinrichs and appreciate you weighing, considering how much experience you have. With appreciation being a huge factor in long term rental investment, where does one walk the line in regards to that vs cash flow? With my goal to have enough income to safely leave my job and focus on other side businesses to create cash flow, I just focused on CF in my first round of purchases leading up til now. Any advice pearls of wisdom for the long game, with this in mind, is appreciated!