All Forum Posts by: Alex Price

Daniel,

If he's listed with a realtor than yes he has to pay the agent a commission. Also in the case of the tenants in the attic, this is probably where his motivation is coming from because his tenants are in default and he doesn't want to deal the issues of being a landlord anymore. If he hasn't served them eviction papers then the next owner will be responsible for eviction and re-renting the property. Hope this helps.

Thanks!

I'm currently filling out the application to apply to banks for property preservation and need to find average pricing for the services that we are to provide. Does anyone know where I can find general pricing for property preservation?? Your help is greatly appreciated.

Many thanks!

Yes its FMV, maybe off by a couple thousand. Also I make my deals very attractive for investors so they are no brainers. Tenants have 2 year leases, houses are exceptionally well cared for and in suburbs and I'm still making tremendous profit.

I wanted to share this deal with the group:

I just signed a contract on 2 rental properties for sale with an investor who was living around the corner. I showed him the two homes and he immediately signed contracts and put up the earnest money. He's closing in 2 weeks. Here was the deal:

Investment: $99,900
Appraised Value - $215k
Equity - $115k
Gross Rent: $20,700/Yr - $1,725/mo
Taxes: $6,242/Yr - $520/mo
Insurance: $1,200/Yr - $100/mo
Prop Mgmt: $1,560/Yr - $130/mo
Total Expenses: $9,002/Yr - $750/mo
Cash Flow: $11,698/Yr - $974/mo

Owner financed deals can be incredibly lucrative depending on the income and expenses you're responsible for. I just recently structured a few deals myself and the terms were pretty similar to the yours and the cash flow was great. I would suggest you look at past history on the properties you're buying as far as maintenance costs and repairs because those can cut into cash flow and that's not fun when you have payments to make.

So I guess now we need to add price and area into the equation. This will become very ambiguous for all. How about we focus on rate of return (price/rent). Right now very few markets are appreciating and price is not as important as return. Let's say 10 - 15% ROI net rental income as focus. So with this, what are great areas to buy rental property. I nominate Cleveland and Columbus, OH.

Short sales can be great deals however take longer than an REO. One thing you may want to do if you haven't already is have a contractor or handyman with good cred over to the property and get their opinion on the cost of repairs, since this is your first deal. Great job on talking to neighbors too. Always a good thing to do and they'll keep watch of property for you too.

Good luck!

I have heard great things about Vegas. A very good friend of mine lives there and has said positive things about the rental market. He owns property in Cleveland as well and made a fair comparison. I have not heard much about Portland, however.

Great questions! Let's go with roi and potential appreciation.