All Forum Posts by: Ben Chapman

I found a property for sale that meets my numbers. I plan on paying cash. It is an assignment contract so the seller isnt the owner. Is it relatively the same as a conventional purchase as far as being able to get an inspection and back out if things are revealed that werent necessarily disclosed? It's a duplex with 1 side currently rented and according to seller, the other side is rent ready. I told him I could close asap as long as an inspection didnt reveal the house was actually falling down.

Any advice would be appreciated!

I had a similar situation. I had a tenant tell me they were breaking lease to find a new job. I was very accommodating so they didnt smash a hole in every dry wall panel on their way out. I owned the house for 10 years and self managed because I lived in the same neighborhood. I moved out of state a month before the tenant wanted to break their lease. I had a ton of equity in the place and just decided to sell. A property manager didnt really make sense because the house was an appreciation play, not a cash flow one. 

The tenant asked if they could have a friend take over the lease to which I agreed as long as they passed my background check. They never filled it out so I assumed they told my tenant one thing but did the opposite. 

The tenant asked me for their security Deposit back. I explained to them with the pro-rated rent, cleaning fees i incurred and landscaping fees she was already over the security deposit amount and would actually owe me money. That didnt include repairing a broken door frame and patching drywall holes from someone falling down the stairs!

I sent her the receipts for those expenses and she got irate with me saying i chose to make those repairs in order to sell the house. she claimed she didnt have to return the house in the condition she received it less normal wear and tear. 

I was fully expecting a certified letter in the mail telling me i was being sued. But in my experience, she had no leg to stand on. 

I finally sold the house 2 months later.

I recently moved to Detroit for my job. It is definately not as bad as people make it out to be. That being said, neighborhoods vary from street to street. I didnt believe it either until I saw it with my own eyes. There are areas where almost million dollar homes are a street or two away from crumbling, falling down homes. 

A house may look perfect, and the neighbors are perfect, but there are holes in the house 3 doors down. Crazy.

37- I own 5 out of state single family rentals in four different states. I'm under contract for my first duplex, supposed to close in a few weeks. One of my rentals just hit the market and I plan on taking the proceeds and buying my first 5 unit+ property. Started investing in real estate 3 years ago.

I'm kind of surprised by some of the responses. Isn't Bigger Pockets all about the BRRRR strategy and house hacking? Although I didn't have to do much hacking, I bought a great property with very little down in relation to what it cost. I will now be able to rent it for more than my mortgage, and not have any of the responsibility of a landlord, as it's a lease option, and the tenant is going to be responsible for maintenance. They are paying 1.5% down for the option to buy the property in the future. If they do buy it, good for me! If they don't, I can rent/lease option/sell it again in the future. I'm not to concerned with the state of them defaulting because I can afford the mortgage without them.

Couldn't it work flawlessly? I sell it in 5 years and the tenant gets a great house that they don't qualify for mortgage wise today. I just want to make sure my numbers aren't way off base.  

This is the perfect place for advice so here goes:

I am relocating for work very soon, 3 weeks. I do not have time for the back and forth of listing my house and trying to sell it. I have only been in the house for 15 months so I have very little equity. It is a very unique property. It is almost 4 acres with a 3100 sqft house, 1200 sqft garage and 1500 sqft workshop. I bought the property last year in order to expand my side business. I overlooked a lot of little things because I only wanted the property for the land and workshop not necessarily the house. I paid 440k. A realtor I spoke to suggested listing at 475 and being prepared to accept 465 based on comps. If that's the case, the fees will eat up some of the money I put down originally. I also put 10k into the work shop for improvements. I am not afraid to rent out the property. I'm asking $2600 to include water and a pool cleaning service. I am trying to get the most money down in a lease option so I can buy another house where I am moving too. 

What is a fair price on a 5 year rent to own? I was thinking a 4% increase in price every year to account for appreciation. Year 1: 483,600 Year 2: 502,944 Year 3: 523.061 Year 4: 543,983 Year 5: 565,742. I'd give the tenant the option to buy every 12 months at those prices based off 4% increase on original price of $465,000. I would give a rent credit toward the purchase price of $1,000 per month. 

With 5k down and a $1,000 rent credit each month toward the purchase price, the tenant would end up having to get a mortgage for $466,600 after year 1, $473,944 year 2, $482,061 year 3, $490,983 year 4 and $500,742 year 5. 

Do these numbers make sense, am I asking to little, too much? Not enough rent toward sales price, too much? 

Thanks for any and all insight!!!

 

I disagree, there is a magic phrase, it's "I'll give you 1 million dollars for your crappy house!" I'd sell in a heartbeat!

After reading this thread im a bit nervous. I am an OOS investor with a property in Indy. Home River manages it. I was actually contemplating replacing them because of their lack of communication on what I think would be the easiest of questions to answer. Does anyone else have any experience with Home River?

@Greg H. They are responsible for Kim K. though! https://wyrk.com/why-is-kim-kardashian-famous-because-of-the-buffalo-bills-of-course/