All Forum Posts by: Tim Czarkowski

Well if you were able to use my strategy you would only need 3.5%. That is one of the best parts about it in my book.

A strategy I used to get started was buying a 4 unit apartment building that my wife and I live in with an Owner Occupant FHA loan. We only had to put 3.5% down and I refinanced a couple months ago at 3.75%. The rent covers the entire mortgage including taxes and insurance. This allowed me to save all of that money to keep building my business. Our property worked out particularly good for us because we live in a 2000 sq ft home so it's not like living in a small apartment. Also the tenants are in the basement and have their own entrance so we hardly see or hear them. It may not be the most "creative" financing but it has worked great for us and I don't think most people know you can purchase small apartment buildings with FHA loans. 4 units is the largest you can do and there are caps on the size of the loan. That's not a problem here but it may be in California. The limit varies from area to area but 3 years ago here it was around $725,000. More than enough for Jacksonville unless you wanted to be beachfront or something.

Yea the people who need to move in so quick generally move out just as quick. I never had to evict any of them at least. No matter what make sure you run the checks you want to and don't let them pressure you to do otherwise. For all you know maybe they are getting foreclosed on. If they can't wait at least one business day so you can verify everything, let them go. You'll be better off in the end. It's nice to rent a place quick but it's even better to rent to a good long term tenant even if you must wait a while.

I always see that as a pretty bad sign. Most people plan a move with more advanced notice than that. It seems like most of these people flake out anyways. The ones I have let move in with very short notice, but never the same day, have always been a pain.

OMG! I just read this thread all the way through. That has to be the worst "Professional Tenant" story I have ever heard of and they're not even tenants! He must have some legal experience. Someone new to the business could have been bankrupted by this and if they were not, they probably would never touch real estate again. Truly unbelievable. I know the laws here in Florida are less liberal, I sure hope something like that isn't possible here.

The worst experience I ever had was a purchase from the county foreclosure auction. The previous owners were still there and had to be evicted. They then broke in that night and ripped up all the counter tops, ripped the doors off all the cabinets, ripped all the drywall off the walls, spray painted the carpeting and tile floors, tore up the wiring, ripped the copper from the A/C, and kicked holes in the bathtub surrounds. To top it off while I was on the phone with my insurance company the next day the guy attacked me. Then the police couldn't do anything because my contractor and I were the only ones who saw him attack me. Lastly the police wouldn't charge them with the break in because although their fingerprints were on the spray paint "It could have been there from when they were living there." When I spoke to the DA about the attack he told me he was in foreclosure and that "I should understand that the previous owner was having a bad day and both the attack and property destruction were no big deal". The last part upset me more than all the other stuff combined.

Thankfully my insurance company formed an estimate with their estimating software that came out to double what my contractor charged me. So in some ways it was all worth it I suppose. It doubled my profit on the deal. That was only my second flip too. Thank God it worked out and I have been able to continue my business.

I hope whatever happens that you at least come out whole. You certainly deserve a lot better. Maybe the guy does have some assets to take or he'll land himself in jail somehow. Certainly would be much too good for him. It sounds like he deserves to be put out of his misery.

I have heard the same thing about both South Florida and North Florida. The market has gotten much more competitive. Although recently the number of auctions has picked up.

I have been contacted by a number of people who thought they got clear title because of the post on my situation. Lost it in two weeks . Ouch. That must be some kind of record. I'm sure both the HOA and the bank were thrilled.

I have seen a number of REO's in bad neighborhoods here that suggest bringing a crowbar to gain access in the MLS listing. I personally have never went to look at any properties like that but if you got them cheap enough you could make a buck. Problem is these are 10,000 or 15,000 dollar places. Closing costs alone could eat up your profit.

Thanks for the tip on the ozone generator. I had looked into renting one previously and it cost more per day than the purchase price on eBay.

I've had a few people ask about reducing the rent over the phone before looking at the place but surprisingly have never had anyone ask while looking at the place before signing a lease. Certainly once the lease is signed I wouldn't negotiate.

The last place I rented before I bought my house we got the guy to come down from $900 to $800 and throw in a last month free deal. I think he was a little high on his rent in the first place.

If someone appeared to be a good tenant I might be willing to cut them a little break but not much.

The best thing that could happen is that they are broken up so they would actually be separate. lol These banks are so large that no one can properly oversee them. That's how they end up not serving their own interests. Just this year I've probably personally seen over a million dollars in mistakes that banks have cost themselves. Foreclosing and reselling a property for much less then a previous short sale offer, having "Property Managers" managing properties they no longer own, allowing REO agents to give "pocket deals" to friends at 50% of market value, not fixing minor leaks that lead to extreme water damage, etc. etc. The fact that anyone can make so many large mistakes and still be in business is amazing.