All Forum Posts by: Alice K.

@Will Gaston -- Thanks for sharing your story. Wishing you the best in this case! 

 @Ray Harrell -- Great thoughts on the matter. Totally agree. 

I lived in a moldly place in Seattle for years and eventually developed major issues. But, heck I didn't go chasing after landlords far after the fact. 

I LOVE how all the agents in here are like, "USE AN AGENT!" Haha I mean, you don't need one but as they said, you can make the agent literally run around town and do the work for you. Good agents blow WEEKS trying to sell your property and often times they can get your home to sell for more than you can alone. You can have a whole bunch interview with you and then pick the best bang for your buck (don't stiff them too hard, they waste tons of time since it's their job) If you go do it yourself like a few mentioned, get a purchase agreement and expect a rush of calls/showings if you priced it right. You could hire a lawyer but they might just review the contract and you'll find yourself running around like a headless chicken. Make sure you disclose EVERYTHING, as a buyer can turn around and sue you if you lie / keep quiet when they ask you a material question (Eg: "is the roof broken" (it is) you: "I don't know." <-- can get you sued) People already covered other parts above but definitely educate yourself so you don't get swindled! Cheers!

Ask your wife if she likes nice things or suffering a bit to have a better future. It's sounds like she's not entirely sold and that's why she's looking at other places even after you went under contract? Maybe that would persuade her to put more of a down payment (assuming you have funds to do so). Good luck! :))

Here's an idea!
Perhaps question them like this: HOW can I take a loss on my properties?
The answer may be no today as the BP guys/gals here said, but a CPA should be able to help you figure out ideas for the future. 

Here is something no one has mentioned yet:
If you make this industry your business (takes a lot of work), then you can potentially deduct your losses.
Not good for this year, but something to think about if you eventually decide you want to do this as a job.
Side note: As much as people in here like to say that their business is running well, if they took at the hours they work v revenue, they'd probably rethink that (as I look at my own situation).
There are many rules and things you must do to show that you actually did the hours but something to consider.

You can ask the seller for the number-- The listing agent should have that handy. In my investment area, much of the time they aren't separated and the owner pays (so try to factor that into rent). Especially since it can become a lien on the home. For a duplex in non-drought areas it's not so much about the water as it is these steep fixed fees for garbage and sewer. I've put 3k / year in my area when estimating the water bill.

Originally posted by @Abdul Azeez:

@Christopher Blanco To each his own. Do what you think you are comfortable with. In my case I did not have an option. Buying a cash flowing property that meets my investment criteria is difficult in NJ with the high property taxes. To clarify, this was my first deal as well. To provide you some of my percentages, this is what I use:

1. 17% vacancy - 2 months

2. 10% PM

3. 10% Repairs and CAPEX

4. 1/2 of first month rent for leasing fee

5. Insurance $50 per month

6. Rehab cost - $5000

After doing all this, I look for a 10% COC and $150 per door. It's incredibly difficult finding deals that fit the above criteria but it also helps narrow down the right properties that work (for me)

I love how you were generous with the vacancy rate and kept these numbers real. Compared to some others I see.
What rehab was 5k for this example? The rehabs I pass in my areas are more like... 20k /+.

I can completely relate to this post.

It takes time and energy. It could be your location (I mean, Ohio I always hear is "so great" for investors..) . My market is a lot steeper than before and rent prices no longer support the cap rates I'm looking for.

My recommendation:

• Just use the MLS. As @Christopher Blanco mentioned and the others. - If you were an owner what would you do? Wait for a bird dog to penny pinch you? Probably not, you'd probably just slap it on the MLS.
• Make a ton of offers on everything. With a 1 - 2 day expiration on the contract.
• Try something completely different - Everyone and their mom is looking for wholesale deal 
• Make sure you have realistic expectations - The others already covered this. I'm sure you already know that.
• Lower your expectations - Many on BP brag about their epic returns and many fail to mention the time and energy. 
• Take a break / check out other areas - The Buddhist approach. (haha)

I'm definitely a fan of cash for keys and being friendly as she's probably as worried as you are. You could try it in this order: 1) Offer full deposit back if she moves no, questions and no need to worry about rent as long as it's decent when she's out. 2) Resistance? Cash for keys. Tell her you want to help her out. 3) Speak with a lawyer as well and prep for an eviction on the side just in case but hope for the best and try to see what her problems are and how you can help make it a win win. Good luck!

@Bart H. - Love how you and your family started. Similar to my ideal plan, as I don't want too be too aggressive and put myself in a sticky situation. 
Do you usually do 1 property / year or more?
I'm raring to go again but haven't seen anything that meets my criteria in my market this season.

@Stephanie Medellin Thanks for the story!
How did you end up removing the smell of cigarette smoke? I was looking at one like that but unsure if carpet replacement / vinegar would really do the trick.