All Forum Posts by: Coley Mitchell

Hello BP,

I am dealing with an issue with my POA management company and am wondering best way to deal with it.

My unit (located in GA) had a cracked window in my rental property that I guess is a common occurrence at the community due to foundation settling. This was brought to my attention by my property manager when she did the walk through with my last tenant before they vacated.

My prop manager informed me that the POA had covered these repairs in the past and that she would coordinate the repair for me prior to my new tenant moving in. I was included on emails from my prop manager and the POA management co. regarding setting a time to see the window and setting a time to do a repair. Not a single word about money was mentioned.

A couple months ago I was presented with a bill from the POA management co for the window repair. I immediately inquired as to why I was receiving a bill for something that I never approved and was told that notification of the repair and the costs involved had been "given in advance". When I asked for proof of this notification, I didnt get any reply and kind of forget about it.

Yesterday, I received another email with the bill saying that it was late and had to be paid before a lien would be placed on unit. I referenced my previous email and again asked for some sort of proof that the repair had been approved. After much posturing they finally stated that someone from my prop management company had verbally given permission to do the repair the day of the appt. My prop manager (whom I have worked with for 4 years and trust implicitly) insists that no such permission was given by her or her maintenance tech who was actually the person on site that day.

The POA management co states that per the GA Condominium Act and the POA Docs state that windows are "limited common elements" and are the responsibility of the owner. My research of the GA Condo Act indicates the exact opposite (that windows are responsibility of POA).

I called my attorney to get his input, but believe it or not it turns out he is on retainer with my POA so he couldnt talk to me due to conflict of interest. This may be a blessing because I know the his costs far outweigh the repair costs for the window (only around $300).

The money isnt the problem, but I dont handle it well when I think someone is trying to put one over on me. Especially in light of the fact that I havent been so much as a day late on my HOA dues in at least 2 years.

They are threatening to put a lien on place and pursuing me legally if need be. I think I may tell them I look forward to hearing from their attorney (who I will mention by name).

What would you do?

-Coley

I am surprise to hear that Charlotte is described as an "emerging" market - living here, I would say it is very much "emerged."

At least from what we have seen, home prices are absurd here right now. Very little inventory and multiple offer/ bidding wars are pretty much the norm. I'm certainly no expert, but this is what I have seen and heard in past 6 months...

That being said, I think this is a great place to own real estate if you can find a good deal. I dont think a 5-8 year hold would hurt you in this market and if home prices continue to stay high, the rental market should remain solid.

Good luck and if you ever need some eyes and ears on the ground I'd be happy to help - trying to educate myself in this whole thing too.

Hi Keela Chambers - I am also a Charlotte local and consider myself to be in the education and saving phase of the real estate investing process - also eager to learn. I'm currently in process of saving for a home purchase (primary residence) so it will be a little while before I pull the trigger on an investment property. I have had a rental property in Savannah, GA for 4 years though so have learned a little there.

Thanks Jon Holdman. Great insight.

After getting burned on my condo that I bought at peak of market in 2006, I am going to be very careful this time around and really want to put myself in a position to have some solid equity going in 2-3 years.

The Charlotte market is a bit nuts now... homes have gone from being undervalued to overvalued in a matter of months.

Guess all I can do is get myself as edumacated as possible and keep on the lookout...

Thanks for reply Chris Martin. I have signed up for trials on foreclosure.com and one other site, and have noticed that finding deals on REO properties is pretty tough because generally the bank wants what they have in it - which is often more than the property is worth.

Is it worth making offers 10-20% below asking price on REO properties or is that a total waste of time?

Hello - I want to find a good source to locate for foreclosures (preferably pre-foreclosures) in Charlotte, NC. Considering making a purchase with FHA loan as primary residence for 2 years or so if I can find a good enough deal.

Is driving neighborhoods, locating empty houses, writing letters, etc. the best way or is there some sort of service that specializes in pre-foreclosure listings? Also, at what point should I get a realtor involved?

Any input would be appreciated - thanks!

Chris T. - Thanks for kind words. If you stumble across any great Charlotte area resources (like local clubs, gatherings, etc.) please share.

Hans Restuccia - Thanks

Great suggestion and also something I'm considering. If I could find a decent foreclosure for less than $303K (FHA lending limit for my area) at 3.5% down, that might be a great play. Will also be a tough sell to the wife as we have our first child due July 1...

Thanks for input Brandon Turner and Matt Devincenzo... Your replies make good sense.

Matt Devincenzo - I have been reporting income on my rental since 2009. As for whether our income is high enough to carry all three, I would think so, but not positive.

After thinking about it more, this property is a much better fit as a long term hold - which is the strategy I am more comfortable with and want to employ in my investing going forward anyway - I'm just trying to think of ways to create additional wealth in the short term. I have about $20K right now to play with.

Any ideas?

Hello,

This is officially my second post on here since joining last week (first post was a new member intro) and part of the reason why I joined... to get advice on a purchase I've been considering.

Here is my situation. I currently own a condo in Savannah that I purchased in 2006 as my primary residence. I owe $138K at 4.125% interest following a refi last Nov. It rents for $1190. After prop management fees, poa dues, and mortgage payments, I lose about $120 a month. Sounds bad, but I use to lose about $480 before the refi... I place is worth anywhere from $80-$110K. Only comps have been short sales and some foreclosures (it is a 340 unit property)... the Zillow Zestimate says about $110K.

Anyway, there is unit available right now that I think I could get for $70k. My property manager, whom I know well and trust, thinks she could rent it for $1075. Running the numbers on a 30 year conventional (PITI and PMI) with the same interest rate I have on my other property with a 20% downpayment, it looks like I would net about $350 a month, earning around a 20% return on my money.

The kicker is that I would have to get a rental waiver on the unit as the POA only allows for 45% the units to be rented at any given time (and there is a wait list). For the record, I was told the same thing when I moved and rented my unit last time (without obtaining a waiver first) and once it was brought to my attention a well written letter took care of it. I'm still waiting to hear back on whether or not the unit has a waiver already, but I would assume not.

Assuming I could make that happen somehow, do you think this would be a good purchase if my goal was to try and rent it for a year then cash out? I would put all profit back into the mortgage to pay it down as quickly as possible in a year's time. Would also provide a decent ta benefit. We would like to buy a house next year and I thought this might be a good way to possibly double our money in a year or so to help with downpayment.

Too much speculation here??? Advice welcome.

-C