All Forum Posts by: Bonnie Low

Ours is a pretty hot market, too. The houses I see sitting on the market a relatively long time are either a) over priced and the seller won't or can't come down on the price or b) they're just weird houses. In scenario a, you have to just hope that over time they'll come to their senses and lower the price to where it should be. In which case it helps to prepare yourself to be first in line. You can do that by submitting an offer now where you think it should be. If they eventually decide to lower their price they might reach out to you. In scenario b, weird houses are difficult and costly to work with. "Weird" can and does encompass SO many things. I've seen houses with strange rooms and funky spaces that people just don't know what to do with. Case in point: what appeared to be a normal 2-story house from the outside but we got inside and realized that the tiny, cramped central section of the house was a single wide trailer (yep, still had the axle underneath it) and they had expanded (with no rhyme or reason) on every side of the single wide - include building a second story on top of it! Or a house with an entire second story (2 bedrooms and a bath) with a ceiling height of 5'10". Stuff like that is costly to fix and sometimes the ARV just doesn't justify it. And then there are things like foundation issues that scare people off. They can be dealt with but most buyers don't want to take the risk. I keep saying I'm going to publish a coffee table book someday with pictures of all the weird things we've seen in houses.

Hey, @John Coppock - welcome! Most people will tell you that if you have a true deal - one that pencils, you will always find the money. That said, there's nothing wrong with simultaneously putting together a buyer's list while looking for a deal but in order to move from the theoretical (i.e. I have $250k to put into a multifamily deal) to the real (that deal looks good, let's draw up a contract for the $250k I'm willing to invest) you will actually need the real deal. 

Wow - I'm really glad you did your due diligence and this worked out for you. It's a great reminder that people ARE out there who will try to scam you. We've invested out of state and have almost (!) always physically viewed a property before closing. We've had enough close calls now to insist on a personal walk through during our due diligence period because people do some CRAZY stuff to their homes. Case in point: great 3/2 in Boise Idaho, which is a very hot market. They had their biggest snowfall on record the week we visited for inspection. The access to the crawl space was buried under about 3ft of iced over snow, but we dug it out and boy were we glad we did! Someone, at some point, had hand excavated all the soil out from underneath the house to a depth of about 5'. It was standing on "pillars" that looked like termite mounds with a few bricks and 2x4's randomly placed for good measure. There was only one way in and one way out so they must have used a pick axe, shovel and bucket to do it (why? we'll never know). Our Realtor hadn't spotted it when we did a face time walk through with her. And the house inspector didn't mention it on the inspection so we can only assume he didn't go down there. We didn't know what the heck to do with it so we just walked away from it. In retrospect we might have had a foundation expert take a look and give us a repair estimate, but it was our first deal and that probably would have been overly ambitious. So crisis averted, but we learned a valuable lesson. For the price of a plane ticket or a tank full of gas, it is always always always worth it - in my opinion - to get  your own eyes on a property before you close!

@Mitch Jacobs welcome! Good for you for getting started early in life. That's the one piece of advice I think all investors agree on: you can't get started too soon. Here are some thoughts based on your scenario. Start talking to a lender right now. I highly recommend @Jason Wray from the Federal Savings Bank, you'll find him here on BP or @Joe DeVera, also here on BP. I have worked with both of them and Joe knows the tri-cities area several people have mentioned. Since you're willing to put in some sweat equity, you might consider a 203k loan. Not a lot of people use it, but it will pay for your purchase of a distressed property (which most conventional loans will not) and will also fund your rehab costs. Changing jobs might affect your credit worthiness, but that's a question for a lender so just another reason to start talking to a lender so you know your options. I think most of us make the mistake that we have to know exactly what we're looking for when it comes to financing. But asking banks and lenders what they offer or what they can do is a great strategy because we can't possibly know all the products that are out there and, unfortunately with a lot of lenders, if we don't ask exactly the right question we won't get exactly the right answer. This is challenging for newbies because we want to sound informed, but getting too specific might inadvertently narrow our choices. A good lender will hear you out and try to find something to fit you. But just like Realtors, they're not all great. So work with someone who will really work for you!

How has this situation changed for you, if at all, now that the Trump administration and CDC have further extended the eviction moratorium through the end of the year? In other words, has it shifted from a state action to a federal action and therefore you'd have to fight it at that level?

Where we live contractors are very, very booked up. If you don't already have relationships, start making phone calls and lining them up now. If you're in contract and the property you are buying is vacant, you might be able to get the selling agent to let you in to the property to get your contractors to look at it to provide you a quote and get you on their schedule. 

So far, real estate doesn't seem to be slowing down. We're finishing a BRRRR and then will be looking for a B-, C+ buy and hold which I think will always be in demand. But waiting to take on another flip to see if market prices hold steady, continue to rise or drop. I don't want to get in a situation where we can't get our money back out of it.

I want to second what @Jon Crosby said about amenities and reviews. Full disclosure: I don't currently own an Air b&b, but I DO stay in air b&b homes often. I travel a lot for work and do a fair amount of vacation travel and always rent a place through air b&b. I haven't stayed in a hotel in years. I 100% rely on reviews and amenities. I will pay more for a little bit nicer house, but if it has poor reviews, forget it. I will read reviews over the last year or two because often someone will post a complaint, but the owner will have taken care of the issue and it's no longer reflected in current reviews. But if there's an ongoing mention of something problematic (not clean, smells, amenities not working or complaints not responded to quickly), I won't rent it no matter how nice it looks or how cheap it may be comparatively speaking.

@Juan Correia my thoughts are that this is a terrible situation. I'm so sorry this is happening to you and your wife! Unfortunately, I have no banking or investing advice for you on this. But as a Nutritional Therapist, you peaked my interest with the word 'diabetes' in your post. I have never worked with anyone with MODY, but I do work with Type 2 Diabetics. Even thought T2D is talked about as a "chronic progressive" disease (in other words, it's going to get worse and there's nothing you an do about it), an astonishing number of Type 2 Diabetics have reversed their Diabetes to the point they are no longer considered diabetic simply by changing what they eat. Primarily, a low carbohydrate diet is what works and has, in fact, even had success with T1 diabetes. I don't know if this would work for someone with MODY, but it's worth looking into. In the States, doctors who treat diabetics are woefully uninformed about nutrition. That may be the case in Portugal, too, so I just thought I should mention this to you. Overturning the disease could solve multiple problems for you, most importantly her health! I wish you all the best.

@Matthew Malen investors will thank you if you show up at local REIA meetings! This is a great place for networking and EVERYONE is looking for a reliable contractor. It's a great way to get referrals, too. Don't be afraid to bring a portfolio with photos of some of your work!