All Forum Posts by: Bart H.

It would be easy in Cleveland - within last 3 years they count as a purchase price.

Anyway, why would it go up that much?

Are there any duplexes sold for $700K?!?

They can't apply other forms of dwellings as comps (SFR, condos etc).

I'd definitely challenge that - at least for 2019 you should be ok with $393K.

Outrageous tax value :(

Hope your rents will jump twice as well 

@Irina Belkofer Yes, purchased in late 2017 for 393,500 with an appraisal for that amount.   The appraised tax was in the 525K range for 2018.. I protested last year by simply sending in the appraisal I had done when I purchased that showed 393K and they lowered it to 393K.

I'm hearing that it should be capped at 10%, putting me at the 433K range.. and I do believe that may be an accurate amount of what it is worth... 

Any Fort Worth/ Tarrant County people out there with knowledge of the caps?   

One would think that if you are capped at 10%, it would be automated and not kick out these crazy numbers.

Hello BP Community! I have a few events I was planning on attending soon. A few of them are listed below. 

Are there any other ones that you have marked on your calendar that I should know about? 

Brad Sumrok's- AimNatCon - (Dallas August 10)

Michael Blank's- Deal Maker Live (Dallas July 25-27) 

Tony Robbins- Unleash the Power (Dallas July 11-14)

****UPDATE****

I spoke to the property management company yesterday. It's Fairview Realty Group if anyone knows anything about them. They took over the management last year from Growth Equity Group and he told me that he has several landlords in the same position. He has looked into the situation and confirmed that I was part of a scheme between GEG and Genesis 1, LLC. They sold the property to GEG for $70,000 and he said GEG sold it to me the same day for $100,900, and Genesis 1 became the lender. The whole intent was to sell me an upside down property that did not cashflow inevitably forcing foreclosure so that Genesis 1 would get the property back and then rinse and repeat for the next investor.

He recommended that I stop making mortgage payments and that he would continue to collect rent from the tenant on my behalf. He said that it would take 10-12 months to foreclose, so I could walk away with that much in rent money at the very least. He said that he could not deposit the rent money into my IRA monthly. He would have to keep it and then pay me at the end of the process. I'm not sure why he can't pay me monthly. That sounds fishy to me. I don't know who to trust in this situation, or if I can trust anyone. Can anyone here confirm that I cannot collect rent if I'm not paying the mortgage?

@Clayton Mobley, @Jay Hinrichs, @Andrey Y., I would especially be interested in your thoughts.

****UPDATE****

I spoke to the property management company yesterday. It's Fairview Realty Group if anyone knows anything about them. They took over the management last year from Growth Equity Group and he told me that he has several landlords in the same position. He has looked into the situation and confirmed that I was part of a scheme between GEG and Genesis 1, LLC. They sold the property to GEG for $70,000 and he said GEG sold it to me the same day for $100,900, and Genesis 1 became the lender. The whole intent was to sell me an upside down property that did not cashflow inevitably forcing foreclosure so that Genesis 1 would get the property back and then rinse and repeat for the next investor.

He recommended that I stop making mortgage payments and that he would continue to collect rent from the tenant on my behalf. He said that it would take 10-12 months to foreclose, so I could walk away with that much in rent money at the very least. He said that he could not deposit the rent money into my IRA monthly. He would have to keep it and then pay me at the end of the process. I'm not sure why he can't pay me monthly. That sounds fishy to me. I don't know who to trust in this situation, or if I can trust anyone. Can anyone here confirm that I cannot collect rent if I'm not paying the mortgage?

@Clayton Mobley, @Jay Hinrichs, @Andrey Y., I would especially be interested in your thoughts.

Hey BP fam!!

Got a counter offer on a property today and it would be my first deal. Here’s the details.

$120k

$24k down

$5k~ closing costs.

I can rent out the other 4 rooms for about $350-$400 each. So about $1400 in income.

In a C+ neighborhood.

The problem is, i can only qualify for a non-qualified mortgage. So my interest rate on a 30y fixed will be 7.8%, and my monthly PITI will be around $950. $200/mo will be going to taxes (Dallas area).

So as you can see, that only leaves about $400 for CapEx, OpEx and Vacancies.

Right now my rent is about $520/mo with utilities. So my monthly cashflow will still be changing pretty drastically even if I am paying $100-$200 out of pocket per month.

Other things:

I’ll probably put any extra cashflow per month towards the principal, since I can still live off my earnings.

I’ll be refinancing as soon as I can, probably within 24mo, or however long it takes to show border income on your tax return.

Okay, so any thoughts? I’m definitely panicking a bit as I’m about to jump into my first deal head first, but am I missing anything major? Any neighborhood things I should be analyzing? Anything else?

Thanks in advance!! Excited to get this one in the bag!!!

-dan

I agree with @Theresa Harris and @Albert Hasson and others.  Based on what you're describing I would help her if she would help me.  She keeps the place extra clean and helps show it.  In return you let her break the lease early if/when you find a new tenant.  Any costs you incur would come out of her deposit but keep the prospect of getting some or all of it back in the front of her mind to keep her cooperation.

If a new tenant moved in the day she moved out and I suffered zero extra costs I would either refund the deposit or tell her in writing after she moves that I would refund it after the replacement tenant fulfilled her obligation to the remaining portion of the original 18 month lease. i wouldn't hold her responsible for the new tenants damages but if I let her out of the lease and the new tenant fails to fulfill the remaining months the original tenant was obligated to and I can't recover from the new tenant like I might have been able to recover from her then I'd want her deposit for not fulfilling her 18 months.  

Also, nice idea posting the lease portion. That way, we can see and comment on it if needed.

If I'm reading correctly, she has already paid April rent, would move out at the end of April, and just offered to give you her $2,000 deposit as an early termination fee. You could start looking for a new renter immediately. I usually fill my units in a week or two... worst case scenario 2 months. 

Honestly, compared to how some renters break a lease early (wait until they're behind on rent, move out without cleaning, little notice, etc.) I'd say that's a pretty great situation for you. If it were me I would take her offer, get it listed for rent right away, and move forward.

@Albert Hasson thank you for that info.  My question wold be, can I keep her holding deposit on top of what you said.  If I find a tenant and she has to pay for rent and utilities until a qualified tenant is in, I believe that my lease states I can still keep her security deposit.  Thoughts?