All Forum Posts by: Barb Asay

@Angie Shires

Its not a huge deal they backed out. We can sell or I can put a renter back in. Doesnt make me lose sleep either way. I was more or less irritated that they are claiming inspection issues without validating their claims or allowing a response and wondering if its allowed in IA. Im wanting to use it as a learning opportunity to negotiate better contracts in the future.

Like hes claiming "electrical worries" which could be as simple as a bad GFCI. "Windows that dont latch" ummm probably a 5 minute fix, not a reason to cancel a contract.

I guess Im feeling like purchase agreements are garbage right now and want to protect myself better in the future.

@Wayne Brooks

Of course. The contract allowed for an inspection period and a satisfactory inspection clause. Both standard in our area. Its just that normally if there are inspection issues the relevant sections of the report are provided as cause. This time I am not being provided anything other that the buyers comments and curious if thats acceptable.

Im normally the buyer and not the seller, this is new for me. How does a seller better protect themselves than to prevent an inspection Claus from becoming a get out of jail free card?

So this is a first for us, did a forum search but no luck. State of Iowa.

The buyer wants to cancel the sale contract due to inspections and is demanding earnest money back. Do they need to provide proof in the form of an official inspection report? My (no -legal) opinion is how do I know his mom didnt just go in and say she didnt like it??

If its relevant: complaints are that a couple windows dont latch and electrical "worries"

The earnest money was garbage anyway but im still wondering

🤔🤔🤔

@Dilbar Chhokar

Yes. You can. In a way. I dont know if its considered a true BRRR but we did it 12 times last year.

We work with a local bank that allows us to. Uy a property subject to improvements. So I present the bank a plan with purchase price, projected rehab costs and projected ARV. As long as the appraiser agrees with my projected ARV the bank will loan me up to 80% of the ARV in a convention commercial loan. We al.ost always go in with no cash down and Often we come out with more cash than we need to Complete the deal. If i happen to need a down payment they allow me to tap into some equity at an existing property.

Is it BRRRR? Maybe not, but who cares

@Janosch Spohner

Flipping houses creates a different tax scenario than rentals.

Llc's have almost nothing to do with taxes and everything to do with asset protection.

You don't need an llc to rent out a couple rooms. Just have some good liability insurance in place and report any rent received from your roommates. Than use any allowed deductions

I would highly suggest you consult with a CPA. You have a lot of questions and your research seems to be jumbling everything up and over complicating it. Its confusing for many of us. Im in talks with my CPA right now about how to set up our flipping business separate from our rentals.

@Jonathan Greer

I have done multiple FSBO deals and have sold on contract once. I think you're over complicating it.

All you need to do is pick an offer and vet the buyer. Run a credit check if you want or get proof of funds. Whatever makes you comfortable that they can pay. Than fill out a purchase agreement with all the details and turn it over to either an attorney or a title company. In my area an attorney is standard and I gave him the purchase agreement along with the buyers contact info and within a couple weeks and for a couple hundred bucks I had a properly filed and executed contract. You'll collect your down payment and installments after that according to your contract. Your attorney can provide an amortization schedule or they are available free online.

@Troy McElhaney

We use Cozy for rent collection and Quicken for book keeping. Its simple to use, no monthly fees and I get all the reports I need. Its neat and organized but not overkill. We own and self manage about 20 properties and also do some flipping

@Sean Ramuchak

We bought our first 3 or 4 SFH's and rented them out while we ourselves, a family of 4, lived in an apartment.

We didnt mean to do it that way exactly, but it worked out and im glad it did. We moved to a new area for work and wanted to rent while we got to know the area. When we started looking at housing we found so many properties that were great and so cheap...just not exactly what we wanted to live in personally. So we fixed them up as rentals. It actually allowed us to build some sweat equity and additional income that ultimately allowed us to buy more house than we ever thought we could less than 6 months later. That was 3 years ago and we now own about 20 properties at any one time (we buy and hold and also flip so it varies).

There is no "right way" I think a lot of it depends on your goals, what your opportunities are and what you're willing to sacrifice to make it happen

@Savannah Watkins

Make sure you're "definitely profitable" after you account for debt service, taxes, insurance, maintenance and something for either a management company or your own time... Not just the mortgage.

After renting it out for awhile you'll most likely have some touch ups, at minimum, before you list for sale again which I would also consider. But its possible your paint, flooring etc could get tore up. Appliances break. Etc. Getting it back on the market after a tenant can be a costly pain.

Just make sure to account for reasonable unknowns.

@Ryan Crowley

I use Quicken and Cozy and they work well for what I need. I self manage about 20 units currently. I looked into Quickbooks but didnt have the interest in dealing with the learning curve.

Quicken allows me to track all my bank accounts, loans, and equity positions, rent payments and tenant info, etc. And for taxes and annual bank reporting the reports are easy to email to the appropriate people.