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All Forum Posts by: Jonathan Sher

Jonathan Sher has started 21 posts and replied 165 times.

Post: Inspection contingency on HUD property?

Jonathan SherPosted
  • Saint Louis, MO
  • Posts 168
  • Votes 40
Originally posted by Jon Holdman:
I'm not sure this is the same everywhere, but around here it has no effect. That is, if they accept your offer, you cannot get your earnest money back. Period. You can do an inspection, but you can't back out if you find something you don't like and get your EM back.

Thanks for the response. So if you do get an inspection and you want out, you can get out, but your earnest money would still be gone correct?

Post: Inspection contingency on HUD property?

Jonathan SherPosted
  • Saint Louis, MO
  • Posts 168
  • Votes 40

Hello BP friends,

I was wondering if anyone has had success when offering all cash on HUD properties with inspection contingencies. I have a feeling if you do this, your offer will be put at the bottom of the stack. Any personal experiences (success or no success) with this?

Thanks!

Post: Which person to rent out?

Jonathan SherPosted
  • Saint Louis, MO
  • Posts 168
  • Votes 40

Judy, make sure you read up on fair housing rules, and make sure you identify your criteria for what approves someone to your standards. Do you have an application you have people fill out? This will help you obtain salary information, current and past work information, SS# and information to run credit and criminal background checks and information to verify their employment and past rental history. Kicking someone out isn't neccesarily hard, but is expensive and can be labor intensive. The last thing you want to do is have to kick someone out...

On here you will see a lot of landlords require the persons gross monthly income to be a minimum of 3x the rent. People also have specific credit scores and criminal backgrounds they will accept and reject Etc. Picking the right Tenant is EXTREMELY important. It can make or break you!

It sounds like the "Baby Sitter" has no current job. How can you be certain she can find a job? What will you do if you put her in your rental, she stops paying rent and starts crying to you on the phone saying she has no where else to go with her children on Christmas Day? Just food for thought, renting is a business relationship, not a charity.

Post: Use Cash Now?

Jonathan SherPosted
  • Saint Louis, MO
  • Posts 168
  • Votes 40

Hello, BP friends. Currently I am purchasing single family homes for rentals. Fortunately me and my two partners have our own cash to purchase these houses at 20-30K a pop split three ways. Eventually I want to use debt to leverage and I was wondering if I should seek financing now, and not burn a lot of cash since I heard cash of refi's are extremely hard to do right now. What would you do?

Post: Good deal or bad deal?

Jonathan SherPosted
  • Saint Louis, MO
  • Posts 168
  • Votes 40
Originally posted by James Martin:
I would put it under contract and wholesale it fast! To renovate a 1200 sqft (1story) with good bones in my area is around $8,000 to $10,000 material and labor.

8-10K? Did you read what he said needs to be done to the house?

New roof
Kitchen
2 Bathrooms
HVAC
New Electrical

Post: Is this a good idea?!?

Jonathan SherPosted
  • Saint Louis, MO
  • Posts 168
  • Votes 40

Oscar, Jon has made some good points. Also, if you haven't already, read up on the 2% rule and the 50% rule.

Post: Trash rental

Jonathan SherPosted
  • Saint Louis, MO
  • Posts 168
  • Votes 40

Julia, I think this would be the point where you need to make an important decision about whether or not to keep this tenant... This is your life and money they are playing with...

Post: Trash rental

Jonathan SherPosted
  • Saint Louis, MO
  • Posts 168
  • Votes 40

Is your tenant using containers for the trash or just leaving it out in bags?

Post: Trash rental

Jonathan SherPosted
  • Saint Louis, MO
  • Posts 168
  • Votes 40

I would be more worried about my rent than the raccoons at this point. I'd imagine you don't have a clause in your lease that says he doesn't have to pay you rent if raccoons eat his garbage. And that's not a valid reason to withold rent from you.

purchased a 3br 1 bath 1000sq ft house for $29,000 and no, it is not a war zone. All in after purchasing appliances and some minor repair work, I'm all in at $33,000. Rents for the area are around $800 per month.