All Forum Posts by: Chris Merchant

Well I would definitely seek legal counsel from an attorney familiar with evictions as many places and courts will rule in favor of the tenant if the I's aren't dotted and T's crossed in the exact spots.  Not familiar with your state or county but you definitely do not want to try and go at it alone to find out your tenant wins their case because you made a simple mistake, being your first eviction pay the cost to get it done right and learn along the way.

Have you tried to find another private lender that would be interested in lending to you on land?  If that is a way you are familiar and comfortable with you could try to find someone who is into the business of lending on only land without a building.

 Yes Yes Yes!  Always have something in writing stating what you expect from them and what they expect from you.  That is the most important thing you can do with a vital team member.  That way everyone is on the same page from the beginning.

Payment wise: you can discuss with the handyman you choose if they prefer to be paid hourly or by the job on repairs and tasks.  But as for managing the tenants you may just want to give them a set amount monthly to do so and that could include normal tasks such as lawncare and what not.  Again that is all something that is best negotiated between you and whoever you choose to hire.

As stated get the sewer line/lines inspected with a camera and if the seller will not fix before closing then demand a discount or cash back at closing to cover the costs and make sure the contractor you hire in that case is authorized through the city to work on or connect to the city sewer system (not all contractors are, in fact some municipalities only have 1 or 2 authorized contractors they allow to touch their lines).  The camera of the lines is something you could maybe get the seller to split with you but for the low cost most contractors charge it is not worth even mentioning (the company I worked for doing sewer and drain work and now use for my properties charges $150 for a camera inspection and you get a file either emailed to you or a thumb drive handed to you of the video of the inspection).

As for the water draining away from the property that could be easily fixed as far adding downspout extenders or could be a more in-depth job of removing fill from around the house and adding drainage piping and gravel with new loam and seed/sod.  But again if there are already existing drainage pipes around the house and you can find or access them via a clean out you can get them inspected via camera as well and they may just be collapsed or clogged and a simple repair.

I would not let any of it scare you away from doing the deal, just with now known knowledge you may have to renegotiate the terms of the deal to make the numbers work.  I would try and call some contractors around your area and get some numbers to run again and then get back to the seller and let them know of the added costs you would incur in purchasing the property and see what kind of deal you can work out so everyone walks away happy and if the numbers you each need to reach to make the deal a win/win are too far apart then is when you decide to walk away, but always do so in a professional manner as if you walk away on good terms there is a chance in a month or so if the seller still has the property he/she gets ahold of you and bends more to your number. 

Like Alex said, I would rent it to them for whatever price you agree upon with them and then HELOC the house and use that money to reinvest. I generally say renting to family gets sticky when you discount the rent but parents is a separate matter. Your other option (just an idea here) is if you purchase another house maybe look for or add an in-law suite to it and they live real close to you, then you rent out the house you currently have also and you solve 2 problems at once, then it allows you to be more flexible with what your parents pay monthly, heck you could even have them pay a/some of the utilities your options at that point are endless, (I do realize some people want their parents/in-laws close but not on the same property was just tossing the idea out there).

Well I would say this, doing your due diligence on an older property (that has probably changed hands a lot) is definitely important.  I would be sure to put in any contract that the sale is subject to your partners approval (if legal in your state) and your partner can be your dog if you choose.  Be sure to get the property inspected by a reputable contractor familiar with homes of that era and possibly even an engineer.  As for cap. exp. upgrades you can check with the building office and see what/when permits pulled on the property.

As for the handyman, be sure obviously it is someone you trust as they are essentially managing your business at that point.  I'd require them to get any repairs/purchases above a certain dollar amount approved by you first.  

Welcome to BP and the world of Real Estate, I would recommend to read as much as you can, even if it is a strategy you don't see yourself using you will still pick something up, or maybe realize it fits you better than thought.  It can be done to start with $0 but will not be easy.

Best tip I can give is: always keep an open mind

 How to Manage Rental Properties by Brandon and Heather Turner (BiggerPockets Publishing) is an awesome book with several sample forms and publications in the book to help you get started

Be sure to check the flooring and floor joists for water damage as it is highly likely the FD poured lots of water in the main damage area of the dwelling.