All Forum Posts by: Corby Goade

Lots of good advice above already, so I won't add to that; yep, this is standard landlord stuff and screening properly is the number one thing you can do to make your business profitable. Something that I'd recommend, especially as a house hacker, present yourself as an on site rep of the owner. You can pass some of those uncomfortable interaction off as part of your "job." I'd also find some standardized documents to use, there are lots of resources here on BP, but using standard leases, addendums, etc, can go a long way in protecting you and presenting yourself in a professional way. If you come off as casual and friendly to the tenant, they'll look at the lease in casual way too.

I don't think this is a bad deal, but there are a couple things to consider. I'd never buy a property with the intention to make the deal work through a future refi- you don't have any idea where rates will be in a year or five, a plan like that could sink you. Buy based on the numbers today, and if you can improve that in the future, that's the gravy. Second, is this an MLS deal? Has it been on the market for long? Whenever I see a "good" MLS deal that has been on the market for more than a few days and another investor hasn't picked it up, it's very likely there is a problem there, either a major issue with the property or the market is softer than you think it is in that area.

Best of luck!

That's an awesome offer. Having a degree will open doors you never thought they would, and you can work, go to school and invest in RE at the same time. I have a degree completely unrelated to RE, but going to school and working at the same time taught me discipline and how to produce results and present them in a way that others wanted to see them, rather than just doing everything the way I thought it should be done. It may seem trivial, but it has served me well in life.

 If I could do it all over, I would get a degree in construction management or something in that field. I'd love to know more about the development and building process, but that's just me. There are dozens of degrees that could be beneficial to an RE investor.

Your best bet is to sit down for an hour with a RE attorney. It'll cost you a few bucks, but it'll save you thousands in the long run. They will likely have a lease that is reasonable and enforceable for your situation and location. Beyond that, screen, screen screen. Finding a good tenant, even if you lose a month or two rent doing that, will save you thousands and many headaches and much stress. Take your time. Especially if you are living right next to each other- a bad tenant could make your life unbearable.

Hi @Account Closed, yes, people always say you can't get good deals on MLS, but that's simply not the case. There are always good deals on MLS, but they only last for a day. You just have to be ready to jump and take a chance. Make offers sight unseen. If you won't or can't do that, you won't get those deals. I am nowhere near as experienced as a lot of people on this site, but every property I've purchased has been on the MLS and they all cash flow well. You can do a lot of other things- work with wholesalers, buy at auction or try to find wholesale deals to keep for yourself. I've never done any of those things, though I do get occasional wholesale deals presented to me, honestly, I find better deals on the MLS.

As for the cash- I don't know your market, but you might be able to get started with $100K. In my market, the median price of a SFH last month was about $180k, but there are always decent places that need some lipstick in the $80-120 range. If you will need more cash (and even if you don't) find a investor's club in your area. There will be hard money lenders there, wholesalers, etc. you can start to network.

Finally- with your cash, hard money, etc, you can cash out right away using Fannie Mae delayed financing. There are plenty of posts on it here, but finding a bank who understands the program and will work with you is going to take time. Start working on that now. You'll need to make sure they use an appraisal as your valuation rather than the purchase price in order to maximize your leverage.

Good luck!

Hi @Account Closed, welcome!

I hate to break it to you, but that scenario is entirely possible in almost any market. I just completed a deal that was almost spot on to your example above, and in a fairly hot market. The trick is to make fast and aggressive offers. Cash talks- you will often get a significant discount if you make cash offers. Not on every property and not every day, but set your criteria, be prepared to move quickly and some of those will hit.

Secondly, if you've purchased a house that needs a little help, you would be shocked at what paint, new fixtures and a few flowers can do for value. You could easily invest $4k, do most of the work yourself and increase a house's value by 10% or more in just a few weeks. People do it every day- that's what this site is all about.

You are right, you won't really see deals like this on Zillow, but those deals are out there. You have to be patient, vigilant and act without hesitation. The acting part is really scary when you are starting out, but you can do this. Anyone can.

Good luck!

This is what hard money is for- there are lots of resources here on the forums. Best of luck!

You can make any crazy offer you want to make, the trick is finding an agent that understands and supports what you are trying to do. In this scenario, it's very likely the bank knows the house is in questionable condition and is auctioning it off with that in mind- they're not likely to negotiate, but you never know.

Most RE agents will tell you that you are crazy or that they aren't comfortable submitting aggressive or creative offers for you. That's not your agent, move on and find one that gets it, or learn how to submit your own offers.

The bottom line is submit the offer YOU want to submit, don't be swayed.

Howdy @Brian Buchanan, welcome! As for the cash flow, my advice would be to establish your minimum required cash flow per door and do not deviate from that. If you find a property that meets that criteria, you offer, if it does not, you move on to the next.

As for how to finance, if you have cash you are much more likely to get a better deal. I just made a cash offer on a property and it was accepted over an offer with conventional financing that was 20% higher. Cash speaks. You can pull up to 100% of your money out right away with a delayed financing deal (search the forums), and start all over. This is the method we use and it's been working great for us. With the market as hot as it is, you are very unlikely to get a great deal, at least with any regularity, making offers based on conventional financing.

Good luck out there- grab a concrete at Ted Drewes for me!

We don't negotiate items like this before a tenant moves in. If she gets carpet out of you before she moves in, who's to say that she won't ask for new tile next week? Landscaping this fall? A new kitchen next summer? You are setting a precedent now- make her think you are tough and you can lighten up later. If you are easily manipulated now, it's nearly impossible to tighten things up later.

Also, I've provided washers and dryers to tenants before, it's always been a bad idea. Every time. I've never had a potential tenant complain when a unit didn't have them, but when units have had them, there are PLENTY of complaints where there are issues, and tenants are usually pretty hard on those machines, problems are inevitable.

Good luck!