All Forum Posts by: Bill B.

It took a couple years but using the Hawaii case as an example. I guess the land owner could force your friend to tear it down at their expense. Plus pay any legal fees they incur forcing it. 

A California woman named Anne Reynolds bought a vacant lot in Hawaii in 2018 and later discovered a $500,000 house had been built on it without her permission. The developer, Keaau Development Partnership, had mistakenly built on her land instead of the adjacent lot. After failed attempts to resolve the issue, the developer sued Reynolds, who then countersued. Ultimately, a judge ordered the house to be torn down, with the construction company responsible for the demolition costs. (Plus $35k in attorney fees for Anne Reynolds)

Adding my two cents:

I would reach out to the “possible buyer”. The lease ends this date, you knew/know that already, obviously. Do you want it renewed at my preference of MTM or a year, at a rate I determine? Or. Do you want them non-renewed or offered a rate/term you determine? If you make the decision and the unit goes vacant. I will require 2 months of rent from you to make up for my losses/increased costs if the sale falls through. 

This gives the buyer the option to make it vacant to move in, renovate, or raise rents. Or have it occupied paying rent day one. 

I don’t think so. Because she can’t do a 1031 in to something she already owns,

But…

Luckily for you, you fall in the super rare, can afford to pay cash category. 

It will cost more, but as long as you can sell your Texas condo within the 1031 exchange time limits, you’re golden. 

You’re going to want to reach out to @Dave Foster and ask him about the procedure and cost of doing a "reverse 1031". You'll buy the new property but not own it. You'll borrow the cash required to a separate LLC not owned by you (or your mom for that matter.) to purchase it and hold it until you can pay that LLC back.

The more expensive the property the worse it’s performs as a rental. Try looking for properties half as expensive. An $800k home doesn’t collect twice the rent of a $400k property, and certainly not 4x the rent of a $200k property. 

If they did, everybody would buy one $4M home instead of 10x $400k properties.  

If you click on the magnifying glass in the upper corner you can search topics. You will see this literally asked monthly if not weekly. 

I will continue to repeat Quickn. (Quickbooks little brother.). Is cheap, fast, easy and overkill for 30 properties or less. It will auto download all bank and credit card transactions. You categorize by date, property, income/expense type, etc etc. 

Zero chance I’d be interested. You assume this was emailed to local investors as well correct? People who know the area, know the value, and have local contacts to do the repairs. Yet they didn’t already bite. I wonder why?

This is absolutely a case of “Don’t invest ANY money you can’t afford to lose 100% of…”

If it’s not worth driving/flying there, spending a week looking at properties and neighborhoods. Meeting the wholesalers/property managers/repairmen in person. It’s not worth investing in. 

You’re pretty much hoping strangers on the internet aren’t out to rip you off, even by accident. And that they have your best interest at heart. First the wholesaler isn’t hiding defects, or inflating values. Then the rando electrician, roofer, plumber, etc etc you find don’t just take your money and do poor or no work. (Then what? Hire another stranger and hope the pattern doesn’t repeat?) Obviously you “hope” nobody says your place was broken in to and stuff was stolen and they’ll need more money. And you hope the PM you find is good and agrees you can charge what the wholesaler said. (Obviously he and the locals didn’t want it.)

I want to repeat the message of “Not trying rain on your parade.” Just trying to protect you from getting burned on deal #1 and losing too much to try again. 

Make sure the loss is worth it to you. You’re going to have vacancy and new releasing costs.  (They’re obviously not going to move in, they’re just going stop paying rent.).

Hopefully you don’t have to go through eviction on the subleased tenants that aren’t paying you rent. You could end up out a few months of rent, eviction costs, and whatever the PM charges to find a new tenant. So figure on a few thousand in  costs if it goes well, $6-10k if it doesn’t. Good luck. 

Sorry. Assumed two sons for some reason. I meant everything the son is selling with his “everything must go” sign is half owned by other kid. Including I assume at least 1 car. But yes. You’ll need probate. Before that you can only talk. They don’t own anything yet. But try to do something before it falls to tax/sheriffs sale or foreclosure when deadbeat doesn’t pay any. Or it burns down without insurance if paid off. Good luck. 

Your local section 8 agency couldn’t tell you? I assume they’d have the final call and it might vary by market. 

Try shopping the umbrella separately. USLI and Madison were both quite a bit less than that for $3M on 12 properties and 2 cars.