All Forum Posts by: Clint E.

A 20 year loan gives you equity more quickly.  If you're ok with the current cash flow, and spending money to raise your monthly cash flow, and plan on 1031 exchanging this up to a better property, then it could be a good deal.  

If you are planning on holding it then I would do a 30 year mortgage just  to use the extra cash for expenses.  

I'm not sure about Kansas City, but there a lot of Air BnB's at the Lake of the Ozarks and in Branson.  Probably more seasonal there with the summer, but in your case the Air BnB in Kansas City would be useful for people who travel for work, which would be more steady throughout the year.  

Does the management company not do periodic interior/exterior inspections?  You probably would want a management company that does that in the future.  Then you can fix and bill right away, before the damage goes beyond their deposit.  

Don't forget to report all of this person's information to your attorney general and / or consumer financial protection bureaus.  

Do you think unemployment numbers are less meaningful since labor participation is at an all-time low?

Think about all the baby boomers getting set to retire in the upcoming years.  Technically, their numbers won't affect the unemployment rate, but they will affect the labor participation rate.  Is this the new normal?  

Step 1:  Buy.

Step 2:  Hold.  

My lease has an abandonment provision.  Renter must provide notice if they will be gone for more than 7 days.  If they don't, they broke the lease.  

Hello BP,

I found an off-market duplex and have contacted the seller.  I have seen the inside of the home during an open house over a year ago when it was for sale.  It has since been vacant - whatever the owner's plans for it, they stalled.  I want to purchase and have the financing lined up at the bank and the cash in savings to close.  The buyer is late 30s, married, has kids and his own accounting business.  Clearly, he doesn't have time or interest to manage this property.  

The house needs repairs and upgrades, but I will have to do that out of pocket as I can't get a 203k loan (I have a FHA on my current house which I plan to keep as a rental). It needs some tuckpointing, repainting of brick, floors, paint, appliances, HVAC in the next few years, possibly windows, electrical upgrades. When it was listed for sale over a year ago, it was listed at $109,000 and taken off the market after 7 months. ARV on this property could be from $150-180,000 but the price per sq ft varies wildly in this zip code and neighborhood.

I'm looking for some pointers in negotiating with this seller and some what to look out for (for either this seller or historic homes).  

Thanks in advance! 

I remember an apartment I lived in.  They said you can paint but you have to paint it back to move-in status (white) when you leave.  

What kind of bank were you at?  Smaller banks may be more helpful, and there are definitely ones that will do what you want.  You not having a personal house makes your debt to income ratio great.

 It sounds like you have identified what you want to do.  Don't let one bank stop you.