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All Forum Posts by: Anna Watkins

Anna Watkins has started 26 posts and replied 377 times.

Final update (sort of) on my Tax Lien Adventure.  At last posting, I was stuck trying to serve a defendant living in Germany, and the case just sat there.  In September 2021, when things were opening back up again, I was ordered by the Court to to "show cause" why the case shouldn't be dismissed out of hand.  This kicked me back into gear, and that's when I learned the defendant in Germany had died in December 2020. No wonder he never accepted the summons packets.  I went to court as ordered, explained the missing defendant and got permission to continue.  I was also strongly "encouraged" to get an attorney.

A local TN friend, who's an fabulous small-town attorney (like Matlock, only skinnier and not as tall) agreed to advise me. He helped revise the Quiet Title documents, and I submitted an Amended Complaint in December 2021.  I also discovered the (linked right there on the Chancery Court's website, duh) the TN Rules of Civil Procedure, and realized that the proofs of service can be submitted individually as received, so I actually could have gone ahead against the other 4 without the 5th defendant being served.  Sent out the amended documents in March, got proofs of service in April, and got on the court docket for late June.

In June, I recieved a default judgment against the 3 defendants who didn't give a hoot about the property and never responded.  The 4th defendant, who was hoping to get some kind of payment from a lien he'd recorded on the property shortly before the tax sale, did respond, and the judge set a final hearing date for August, when she wanted to be over and done with it completely. The judge said more than once that I needed to "bring a witness," for what I had no idea. I found another local attorney who agreed to look over the case, and he determined that he could testify that the tax sale was done lawfully, that the defendendant had no legal standing to contest my ownership, and that the recorded lien had been made void for a number of reasons, including the tax lien, which is superior to almost every other kind.

At the hearing in early August, while waiting for the case to be called, I spoke at length with the 4th defendant. I explained the several reasons why the lien he'd recorded in early May 2015 wasn't valid, and that though I had purchased the property, it wasn't my responsibility to pay for work done 18 years earlier (for his grandparents). He was a nice person in a bad position, but still, I didn't owe him anything.  Ultimately, he spoke to the judge during a break and withdrew his opposition to the complaint.  I won!  but it didn't end up feeling like much of a victory.  Most likely, if I'd known what I was doing and attempted to speak with him a long time ago, this might have been concluded a year or more ago. My "expert witness" still gets paid for reviewing and showing up, even though it turns out he wasn't needed. Oh well. Deductable expense.

I'm waiting to get a copy of the signed and filed final Judgment -- this is the court document that says what the case was about, how it proceeded, what the arguments were, and what the judge finally decided. I'll use this either to get a warrantable deed in my name, or for a buyer to get title insurance in their name.  It's a vital link in the chain of title that will be researched from now on out.

On the plus side, the county conducted its every-5-years tax assessment just this spring and doubled the tax value of the property. Cross your fingers for a profitable outcome if a buyer comes along!

I decided against law school my senior year in high school.  This was a super interesting, though somewhat stressful, legal education, so maybe in the life after my next life ...

Post: [Calc Review] Help me analyze this deal

Anna WatkinsPosted
  • Investor
  • Atlanta, GA
  • Posts 383
  • Votes 247

I'm not seeing enough info to give relevant input.  What's your plan?  Rehab for rental?  Fix & Flip?  Have you seen the property in person (I do see you're in Atlanta, so I hope so)

Where did the $120k rehab amount come from and what's included in the scope?  Looks like a pretty big job with structural work to do.  Who's doing the work, and how in control of the schedule are you?  Right now, everything is expensive, hard to acquire, and decent workers are already busy.  Three months holding time might be optimistic for Atlanta, if you need permits, or if anything happens that stops progress for any length of time.

A 1935 house can be cool, but will have all kinds of hidden surprises.

Post: Calculating SFH rental monthly expenses

Anna WatkinsPosted
  • Investor
  • Atlanta, GA
  • Posts 383
  • Votes 247

Figuring your costs before in advance is wise, but I'd also add that even if you figure 10% for Capex and the numbers work, don't go into a deal thinking you'll have the other 90% after expenses to spend right away. Plan your investing so that the first year (or more) of your profit ALL goes to reserves. Only after you have a reasonable and comfortable cushion for the unexpected expense should you even think about using your rental income for anything else. For instance $74/month in anticipation of a water heater replacement is mathmatically sound, but not bulletproof if your water heater is an anomaly and dies in year 5 instead of year 10.

Building reserves may put your next purchase an extra year or so away, but you'll be better positioned to grow your rental business from financial strength, than from a position of "hope and a prayer" that nothing goes off-plan.

Post: Do you provide fridge for you Rentals?

Anna WatkinsPosted
  • Investor
  • Atlanta, GA
  • Posts 383
  • Votes 247

I agree absolutely with the crowd.  People rent because they don't own a house or want to own a house. Who's got the wherewithal to haul around a refrigerator??? I woudn't rent in a place that expected me, a renter, to bring a needed/required appliance, and I don't expect anyone else to either.  My lease includes a clause that says "the appliances that are here when you move in have to be the same appliances that are here when you move out." The nicer the house & higher the rent, the nicer level of appliances.

Post: What Are the Key Expenses in a House Hack?

Anna WatkinsPosted
  • Investor
  • Atlanta, GA
  • Posts 383
  • Votes 247

I have to 100% ditto what @Brendan Mitchum said.  It's expensive and hard enough to buy a decently priced single-family home in Atlanta, and buyers will fall all over themselves for listed small-multifamily (they're kinda like unicorns). Look for properties with space that can be converted into a MIL suite if there's not one listed, like maybe an enclosed carport with separate entrance, or a walk-out basement. Also look at the parking available, which is also important. Off-street will rent for more.  As long as you don't put in a real stove, you're not even dodging regulations -- like AirBnbs that have a microwave and an installed two-burner "hotplate" in the countertop and a frozen-pizza sized toaster oven. In a good location, an efficiency apartment will still rent quickly, and if you've got busy young professionals, they don't want to cook in an oven anyway. 

Post: Tenant issues are frustrating me.

Anna WatkinsPosted
  • Investor
  • Atlanta, GA
  • Posts 383
  • Votes 247

@Colleen F. - for sure I remember those. It's why I'm often still surprised to pull that handle and see pots and pans where the broiler used to be!

Post: Tenant issues are frustrating me.

Anna WatkinsPosted
  • Investor
  • Atlanta, GA
  • Posts 383
  • Votes 247

This is one of those times when asking a lot of followup, clarifying questions saves a lot of time, grief and often money.  "Wow, that's weird, it didn't do that last week. What were you cooking?  What dials did you use to get the oven to go on?  Yeah, it can be confusing. Let me send some info on how the stove works, so you can help me figure out what to do to get it right for you."  Next conversation --  "Oh, it works now? Great!!"

Post: How is anyone buying investment properties right now?

Anna WatkinsPosted
  • Investor
  • Atlanta, GA
  • Posts 383
  • Votes 247

So Grant, what's the real question?  Is your post a vent (and I hear ya'!) or an ask for solution ideas?  

As long as I've been buying rentals as investments (never to live in myself) the downpayment has been 20%-25%, so this is not news. You must have been expecting owner-occupant percentages. Surprise!

1) is this property really a good deal? do the numbers work?  or would it mostly be an emotionally satisfying purchase?  This is the first thing you have to know for 100% sure

2) If you could come up with the downpayment, do you qualify for a conventional loan based on your own finances and the income from the property? will you have any reserves for CapEx, vacancy etc? Is the student rental of a kind that would qualify for conventional anyway?

3) how much money is 25% for this property? If it's a good deal and it will pay for itself as an investment, your stumbling block is coming up with that.  Conventional loans don't like downpayment money to be borrowed, so you'll need a partner with money.  Network with RE associations, ask relatives, etc.

4) you could try asset-based lenders, that care more about the value of the collateral than about your personal finances.  They'll still probably want 25% down.

5)  the owner knows you're interested and reached out to you, correct?  Have you talked about owner financing?  Put some money into an experienced RE attorney, and see if you can figure out some way to guarantee ownership, take over paying the current owner's payments and assume the ownership hassles, make some payments directly to the owner, and set a balloon-payment day a couple of years off, when you can refinance and afford to leave some of the cash in the deal.  Once you already own the house, the "downpayment" can come from equity instead of actual money.

Post: HELP! I CANT BUY A HOUSE... Yet.

Anna WatkinsPosted
  • Investor
  • Atlanta, GA
  • Posts 383
  • Votes 247

In-a-rush is the worst way to buy a house.  Renting isn't the end of the world, and it's not forever. It's easier to get out of a lease than a huge mortgage for an overpriced house. 

There's always "rental arbitrage" -- perhaps you could look for a rental house with space for a roommate?  Consider renting a strategic move, to give you time to scout for the off-market or under-appreciated property while you're already in Nashville. You could rent a less expensive place and use the time to save up even more for a downpayment, or you could rent a luxury place, and just enjoy the perks for a while.  Consider buying an investment property in a less competitive area that will generate income, instead of a personal residence. The path to financial freedom is different for everyone, and doesn't have to start with real estate.

Post: sending out text blasts

Anna WatkinsPosted
  • Investor
  • Atlanta, GA
  • Posts 383
  • Votes 247

If you really really really want to get hold of a decision maker, make an effort to get yourself in the car and go in person.  It's pretty clear that the people who haven't responded aren't interested in your offer -- at least right now -- and more harassment isn't going to put you top of the list if and when they are interested.