All Forum Posts by: Tom Server

@Tom Server  With your welcome letter I would ask them to clear the garage or at least get it divided up. If the bays are separate with locking doors you can rent them separately or include the one with the electrical panel with the unit it services and charge a higher price. For now maybe you include them since the lease is silent on the issue.  I  do garage addendums. The garage terms are separate but attached to the lease so that when they leave they can no longer rent a garage. The addendum specifies they cannot do mechanical work in the garage (e.g. oil changes), they are for storage only and I am not responsible for the contents. (if mice or squirrels are in the garage do you want to hear about damage to their stuff? )

I don't believe it cash flows net $1400 a month.

And how do you know what condition it's in, whether the tenants are current, whether they're on leases?

And how much experience do you have?

Not enough info to know what to do.

In some situations, I might put a blind offer on a property but I would put in contingencies that would allow me to walk if it's not what I expect and never close without having viewed it.

See what I mean about reduced competition? At least two posters said they wouldn’t even look at the deal. That’s what makes these a win. You eliminate anyone who wants a reason not to put in an offer. If the property was $30k more and cash flowed only a $1,000 instead of $1,200 suddenly they be interested if they could see the inside. You’re being paid to be an investor. Nobody expects you to close without seeing the inside and making an offer costs nothing

Try posting the numbers of any deal today that cash flows $1,400/mo. People are dying looking for $1/mo positive cash flow. (A $250k property with 20% down with zero insurance or property taxes where each side rented for $1,400 probably wouldn’t cash flow $1,400)

1) ask a local PM how much they think they could rent the property for . (To make sure the rent isn’t being inflated)

2) there’s no problem having “outs”. Simply verify the leases and the deposits. You get the inspection, the law will have a notice period but beyond that they have to allow inspections. 

Personally, I’ve purchased $500k properties without seeing the inside until the day of closing. That’s not the downside. It SHOULD keep the competition away and give you a better price.