All Forum Posts by: David Bowles

@John Teachout Thanks For the advice John! I didn’t realize you could even tell a tenant to move without evicting them!

@Rick Ortiz I do intend to ask the seller for proof of rent payments for the last 6 months. I expect he will share that with me as I mentioned, he’s a friend of a friend. From my understanding she isn’t always late, but sometimes is, but always catches up. It’s definitely not too late. I’ve made no agreements of any sort at this point. I am planning to meet the owner/tenant Tuesday for a walkthrough of the property. My REA friend (also an investor) will be going with me as well to give his advice.

Thanks for your feedback!

@Anthony Wick I definitely understand your stance on the tenant issue and I would normally do the same. The difference for me here is a few things. Firstly, she has been there and takes care of the house for 4 years. The only time she asked for repairs was a clogged toilet that got replaced. On top of that, he has already told her that the new landlord will not be accepting any late rents without a late fee coming with it.

I think you and I may be in different financial boats as I think buying 12k in equity with 2k is a good deal. As I’ve mentioned, I own 0 investment properties currently. I truly do appreciate your input!

@Craig Sloan Thanks so much Craig! I appreciate the advice so much more than you may realize! And I’m sorry that my autocorrect failed me on the spelling of “eviction”! 😂

To add to my last comment. The seller is even willing to let me finance the property. My plan at this point is to do a conventional 20% down Loan on the full 60. I’m expecting around 6k closing so that leaves me bringing 18k to the table. The seller is then going to give me back 15k immediately after closing. I’m thinking I can end up with only about 3k into the deal, a 48k mortgage on a 60k house that is currently renting at 650 a month.

It sounds CRAZY to me. Am I missing something huge here guys?

@Mary Mitchell Thanks for your time in this discussion. I’d be happy to share more details with you!

The has fallen on some hard times. He has NEVER used leverage, everything cash. Due to a recent divorce, he is looking for capital to start flipping again. He looked into a cash refi on the house, but with the market how it is, he’s looking at paying super high lending costs. To add to that, Michigan is locked down right now so time on market has significantly.

He is a friend of a friend so is willing to sell me the house for 45k. The 60k value is based on comps within 1 mile over the last year. Appraisals are coming in all over the place right now, and I do not plan to sell the property any time soon.

Feels like a great deal that came at a great time for me! What are your thoughts?

@Nathan G. @Craig Sloan Thank you both for the advice! Wouldn’t an even toon be easier if I have a lease in place? How would I prove to the courts what our initial arrangement was?

@Justin Schaefer Thanks Justin! That’s something I hadn’t thought of!

@Nick W. Graham Thanks Nick!

@Corey Hawkinson Thanks for your input! I think the case here is that the tenant may have been trained that it was OK. The current owner is a very kind hearted man and is extremely lenient and happy that he can bless others When he can.

As everything stands right now, the current tenant is on month-to-month. Would it be in my best interest to institute a lease when I take the property over? Or should I keep her month to month just in case I need to find a tenant that will pay on time?