All Forum Posts by: Amanda Williams

Happy New Year! So, I have an unusual situation and would love some insight or suggestions on how to move forward. I am under contract via an assignment contract (wholesale deal) to purchase a property. In my due diligence, I discovered that the parcel contains not only the duplex I thought I was originally purchasing, but also another small cottage. There is not enough land to subdivide based on minimum lot size requirements. Before I went under contract I asked the wholesaler about this based on the GIS and tax data and he said he checked with the seller and that the parcel only contained the duplex. (NOTE: The seller also owns the adjoining property and thought that the cottage was on that property along with another cottage). I was able to find where the seller originally purchased the property in 1985 and the survey that was attached that had the 2 parcels and the one that I am trying to purchase -- which clearly shows the cottage on the parcel. I informed the wholesaler that the property contains both the duplex and the cottage and that I would still like to purchase it. He spoke with the seller and the seller said he doesn't want to sell it if it contains the cottage. The wholesaler is not willing to force the seller to close --even though he is under contract to sell the entire parcel. This deal is a big one in that it would give me 3 STR's -- Major cashflow! My attorney says that I can force it because it is a legally binding document -- but I am not sure b/c it is an assignment contract, so wouldn't I essentially be forcing the wholesaler and burning a bridge???? HELP!! I don't want to be a nasty money hungry investor, but then again I feel like both the seller and the wholesaler should have understood what they were selling. Thoughts?

 Julie,

That is AWESOME advice! I can tend to "over-prepare" and over analyze things. Sounds like I need to relax and get down the road a bit first. Thank you again for chiming in. On another note, how does your investment in the smokies perform? That is the next place I was considering after I got my hands around this one. 

 HI Nathan, It seems like the way to boost your occupancy rate is to market and book across multiple sites. I have heard from other investors who have done it that there is can be a lot of work with avoiding double bookings and managing guest communications. I may be concerned for no reason, but I don't want this first one to be all consuming on top of my other investment work, job, and family. 

Hello! I will be closing on my first STR in early June and could really use some recommendations on how to manage it myself. I have worked with long-term rentals and flips, but this seems like a whole new world! I would like to start with some type of management software that integrates the different sites, allows me to integrate auto price updates (wheelhouse), and easily manage guest communications and bookings. A plus would be the ability to communicate with the cleaning team. I have spent hours pouring over the different software programs to the point that my eyes are crossing! Can someone simplify this for me and point me in the best direction to start? What has worked well for you and why? Also, I do live locally, but about 20 min from the unit.

Hi there! I am looking for recommendations for a lender in NC who does non-conforming loans. I have a great HML that I work with in Asheville - but would like to look at something different for my next project since it will be a buy/re-hab/hold property. Any recommendations/referrals would be greatly appreciated!

@Alex S. The current rent is significantly below market value and the property needs some work. Also, I am fairly certain these are not the tenants I would want long term. I am trying to get the property for roughly 70% of ARV, so this is one that has a lot of upside with some work put in.

I have a duplex that I am negotiating that has tenants, however the seller isnt able to produce any actual leases. The current tenants aren't either. One tenant appears to have an agreement for month to month, the other thinks they have a 12 month. Any experience with how to deal with this? Since there are no actual leases that can be verified, would I be ok to give 30 days notice to vacate after closing?

Thanks for the input! The ARV rehabbed is around 230k with each unit renting for $950 a month. I want to make sure I have enough room (LTV) to payoff the HML with the refi. I offered a quick close, but that didnt seem to motivate them. Best that I can tell is that they dont want to deal with the tenants anymore, leading me to assume that getting them out in order to rehab may be a challenge and increase my holding costs. I have asked for more information about the lease terms to see what options I might have.

I havent ever asked a seller to hold a second mortgage, how would I go about proposing that?

@Amanda Williams I should add that my initial offer was 165k with them vacating the tenants.

Looking for some input on a negotiation I am currently working through. It is a duplex that has pretty significant deferred maintenance. I estimate that repairs to bring it to market value rents would be around 35k. Both units are currently occupied, but are rented for about 30 percent less than most others in the area. The seller does not like the idea of having to get the tenants out before closing as they feel it is a big liability if I were to back out. The current asking price is 209k. My ideal scenario would be 175k - which allows for using hard money to purchase, complete renovations, and re-finance into a good cash flowing property. I have them down to 185k right now - given that I take care of vacating tenants after possession. Any advice on next moves in negotiations or on ways to think about this differently if I have to take care of dealing with tenants? Thanks!