All Forum Posts by: Dave G.

I think a better question is who is in disagreement with this??

I've seen Mark Zinman of Zona Law Group speak at the Phoenix AZREIA meetings. Not sure if he does business in Tucson, but I'm sure he'll have a recommendation for you if not.

https://www.linkedin.com/in/ma...

Oh, and if you're getting financing, you'll want a contingency for that in case it falls thru or the interest rate spikes ruining the deal.

However, you know that the more contingencies you put in you offer the less attractive and competitive it will be to the seller. 

What does KY law require? I bought a historic home in Northern AZ and did not have a lead paint inspection. It's 107 years old and I guarantee it has lead paint all over it. It probably has 2 or 3 layers of non-lead paint on top of the lead, so I don't care much. Also, no kids live in the home. So no worries there. Depends on your specifics and intent with the property. 

I think you already know what to do based on your question. Mold inspection and remediation is a must. Get some good inspectors out to look at it and tell you what's what. Good luck to you.

@Ryan Bird I am no lawyer (so maybe you just stop reading here), but here is how I look at it. Unless there is some particular contract law in your state, the addendum is part of the lease agreement as it should be clearly referenced in the lease. Or you can include the language within the lease document itself as a paragraph or section vs addendum. If it is an addendum (which is common), I would never think of it as a separate, stand alone document. The lease, combined with all applicable addendums, would comprise the entire lease agreement that the landlord and tenant must perform to. 

In terms of actual signatures, just like with a purchase contract, I would get the tenant to initial every page of the lease and addendums, with signatures on the last page of the lease doc and each addendum. 

@John Smeltzer I have condo rentals too, but have not encountered this issue (yet...and thankfully). I think you're on the right track with 1st engaging the HOA for some type of exemption. Not sure if you have enough time, but you could even pursue a board seat to try to influence and change this rule from the inside. If still no joy, then talk to an attorney. My feeling is this will be a low-likelihood of success, with a lot of expense involved. Then you have to sell.

And maybe selling is not the worst thing in the world with market highs right now. And what other dumb, restrictive rules will this HOA pass going forward, making it more undesirable owning rental property under their "rule"?

Good luck to you Sir.

There's a lot of current discussion in BP on whether or not there will be a RE market correction. I think this is where you need to start as you contemplate investing. If you think the insane price growth that Austin has experienced the last couple years is natural and healthy, then maybe you stay local. As you can tell, I believe otherwise. I would look out of state for opportunities, but also acknowledge that long distance investing brings its challenges too. Either way, $18k will not get you far unless you're leveraged to the hilt, which is not my bag. Keep saving, keep learning, keep searching. You'll get there. Good luck to you,

Dave

@Chris Duffy And you're going to get a lot of mixed opinions here too. There's lots of posts in BP on this topic already. There are pros/cons to both sides of the argument. Ultimately it is based on an individual's circumstances. 

For what you've described, my opinion is you getting licensed would be a waste of time. Nothing says you have to have a lic for agents/others to compensate you for sending a deal their way. Having a lic as an investor opens you up (at least in AZ) to higher scrutiny and drives increased level of ethics standards. And you have to disclose it in all transactions. It costs money too....to initially obtain the lic and then to maintain an active standing. 

I went the route of getting a lic, but I became an agent for several years too. This was pre-internet, so it gave me access to the MLS which was critical. Today with the internet, you have much greater market transparency as a non-agent.

Good luck in your choice,
Dave

@Noah Joseph Armstrong Financially free next year at 23 years old? You're still going to work, right? Don't fall for the FIRE myth that it's time to sit on a beach for the rest of your days. As a motivated & productive member of society, you've been working hard for a long time and you'll still need to keep doing something productive. Hopefully that will at least be your real estate investing...

Regarding 0 down....forget it. Been there, done that. Lost my shirt. 0 Down = stupid overleveraged = incredible risk exposure. Especially in this highly-valued market. It sounds super sexy, and honestly when I did it decades ago at about the same age as you, I got a major rush doing the deals. But after that, things went down hill fast with what turned out to be negative cash flows. 

Sounds like your house hack is working very well, nice work! I would embrace that for now and keep building your war chest. Not sure I personally would want to buy a long distance rental. Maybe you bump up your schedule on moving down south so you can start investing local to you sooner, especially if you know you want to live down there anyway.

Good luck to you,

Dave