All Forum Posts by: Becca Summers

I have found with the HOA it's really hard to get a property to cash flow. We're single-family your renters pay their own utilities so that saves you a lot of money. Townhome and condos you're competing with first-time buyers and it's a super competitive market.

@Daniel O'Grady If you are paying cash why would you need a rebate? Why not write the offer for that percentage less? However, writing the offer for 3% less now makes you the same net to the seller as a buyer with a buyers agent so you've lost your competitive edge. You could write the offer and then ask for a percentage to cover your closing costs but being cash you wouldn't have much depending on your state. In Utah, the seller pays the title policy so there really aren't many fees unless you want a lenders policy??

You could have your friend who is an attorney write the contract for you.

To answer your question on commission, the seller is paying the agent 5-6% to sell their home. That agent is called the seller's agent. The seller's agent will put the home on the multiple listing service and offer a buyer's agent commission to bring an able, ready and willing buyer to the property. There is no set amount but it's often half of what the listing agent is taking from the seller. In the event of an unrepresented buyer, it's up to the listing agent for what they do as they have the contract with the seller. They can take the full commission as helping an unrepresented buyer is a lot more work than working with another professional. They can reduce their commission for their sellers and give a rebate to the seller. They can't give it to a buyer. However, it could be a credit in closing costs, or a lower purchase price. It's all about the net to the seller. 

Have 6 months of your living expenses, business expenses, and be ready to jump on deals. Get liquid where you can.

@David MIchelsen What are you doing for your downpayment? I have found doing BRRRR is the only way to really get a property that has a great ROI. I just helped a client buy a home in Lehi that he got a 10% ROI with very little work to get it rent ready. We jumped on it quickly because it was a divorce property being sold and needed a strong offer quickly. Deals are out there they just fast.

I stay away from condos because of the HOA and rental rates, There are so many institutional investors building condo complexes which make that market feel saturated. I like single-family. I also feel duplexes are overpriced for what the rent rates really are.

@Meredith Burt The real estate market has held in the last two months. Homes sale are down, meaning the number of homes selling but the median home price went up  $3,000 last month. The interest rate just hit a 20 year low so it's a great time to buy but a lot of people are cautions. If you plan to buy and hold for 5-7 years it's still a great time to buy. For renters 2 of my 5 renters were late in April because of job changes but they have both caught up. 

I'm personally not a fan of investing with extra people when you're first starting out. I think you should save up and make your current home a rental at the year mark. I would spend this time getting to know your new area. Find out good rental areas, good rental rates and more. 

I love the data and numbers it really helps make a good choice. 

Austen, 

I think you've done a great job sinking through all the scenarios. I do think we are in a great seller's market for that price point. I know a lot of people regret selling properties that would make a good rental down the line however being able to sell it without capital gains is a huge benefit. 

I would want to know what community it is in before I made my final decision because some aren't as landlord-friendly as others. If you did keep it you could get a home warranty on the property for $500 a year which would cover when your AC goes out.

Houses with basement apartments for $450 are few and far between they do happen but they sell quickly. 

Angie if you were to buy a new house I would try and stay under the $330 mark because then the numbers work even better for rental rates down the line.

I help investors buy properties like that often.

@Kyle Berger Did you find what you are looking for? 

@Johnny Hunt Yes they can and they do all the time. It's supposed to help keep the value of the community. If there are to many invesments the community may not be able to get traditional financing which will kill property values. I would ask the HOA for exact proof of this information. They should have it in the CC&R's or in the HOA minuets. It sounds like from your reading that they don't have a rental cap just a nightly rental limit where you have to rent at least 30 day contracts. If you do have to fight it you'd have to get it put up for a vote and get the rule changed.

Rental rates are better in Travers MT but the HOA is higher so it will cut into your cash flow. Renters don't seem to care to much between the two locations. The west side of I15 has bad traffic patters which make turn over higher. However if you're talking off 2100 which I assume you are that area is great. They are fixing both exits so hopefully that will help. Do you have a Realtor helping you with this?

I believe Edge has investor cap on their communities which you'll want to double check they have availability.