All Forum Posts by: David Wandel

Find another roofer. There is no reason that your half of the duplex can't be done without doing the other half being done also.

There are townhouses and duplexes all over the country that get their roofs done without doing the adjoining roof.

I don't have an answer for you but what I do when purchasing a property with existing tenants in place I underwrite the purchase at the current rents. If it doesn't make sense with the current tenants there I won't purchase the property.

I may give them a small rent increase of $15-50 dollars. I still have some inherited tenants many years later. Most were under market rents when I purchased and still are below market rents but it really doesn't matter since the original purchase price met my criteria when I purchased the property. I currently have 5 tenants who will probably be with me until the end assuming their health allows them to stay. I will trade reduced rent for 10-25 years without a turnover.

Here is a link to let the politicians know what you think

https://nationalreia.org/actio...

Here is a link to let DC know where you stand on the eviction moratorium

Please share this with your friends that may not be on Bigger Pockets

https://nationalreia.org/action-center/?vvsrc=%252fcampaigns%252f77003%252frespond

I have a few properties that have vacants next door. Bought them when i was just getting started and didn't know any better. Here is what I do. I keep the grass cut on the vacant property. I clean the trash up when someone dumps there illegally. I have had to fix the roof on the vacant property because the water was coming into my unit. I had to board up the windows up on one of the vacants because my insurance company was going to cancel my policy. Every few years I repaint the boarded up windows and doors. When someone breaks in I board it back up.

That's a lot of extra on going work to keep your property looking presentable. Some lenders won't finance your property if there is a vacant next door. Most of your voucher programs won't place a tenant if there are vacants on the block let alone next door.

Just some things to consider before you buy. Also, what is your experience with neighborhoods like that? How many people do you know and have interacted with in your life that live in these communities? The numbers might look good on paper but the vacancy rate can be much higher and so can your turnover costs.

@Nicholas Fiorentino

I don't know whether there is any possibility of a counter suit since I am not an attorney but I believe that bad operators need to be called out and we should make the community aware of people/entity's that aren't what they claim to be.

Vina Real is not the only person having problems with Joseph England keeping his word so I am pretty confident that she is telling the truth.

@John Terry  I have my attorney draw up the note and mortgage and prepare all the other necessary docs. The note will specify all the terms like interest rate,length,balloons,rate resets,etc. The only time I do interest only loans are on short term loans. I sometimes have automatic rate resets based on the federal prime rate at the beginning of specified year. This is to make sure that I continue to get the return that I want in case interest rates go up.

I would definitely have an attorney that is familiar with real estate notes to prepare the necessary documents. You want to make sure everything is done correctly in case you need to foreclose or want to sell the note down the road.

When I have a good tenant that wants to buy the house I always sell to them because if you don't you will lose them. They will go find another house to buy.

They have already passed your screening criteria so they should be able to or close to being able to qualify for a loan. Assuming that their rental history shows that they pay on time and they can come up with the down payment I would sell them the house.

If you haven't done any updates you are getting into the time period where cap ex items are going to start popping up. If you sell to them they will be responsible for all repairs and maintenance. 

I would probably adjust the interest rate up to bring their payments to the same or just a little higher than what their rents is.

Selling on owner financing is my favorite exit strategy. I still get a monthly income. No repairs or maintenance, and I make money on made up money(the interest on your profit). I don't put balloon payments into my notes. I really don't want them to refi out. At least not in the first 6-7 years. 

Your return will be better with the owner financing because you won't have the HOA fees and repairs coming out of your money.

24k is a decent down payment. I would be selling them the house. It will also save you on a turnover. With that kind of down payment they should be able to find another house to buy.

How about start applying what you have learned. You should have learned enough now from the programs to get you started down whichever path you want to go. Wholesaling,flipping,rentals,etc.

Time to take the next step and start using the education that you have. Find your local REIA's and Meet Ups and begin attending as soon as they open back up. Many of them are meeting on line during COVID.

Like Ned, I did not go to college. I didn't even finish high school and in no way has a lack of a formal education held me back. The only thing that has ever held me back has been myself. I do consider myself fairly educated though. I read a lot and on a lot of different subjects and occasionally will take a weekend course, attend seminars , etc.

I would encourage you to read up on tax planning and tax strategy and not just count on an accountant to advise you.

Next, I would encourage you to read up on whatever area of real estate that currently interests you. Starting with the landlord/tenant laws where you currently own your rental at.

Success is a personal thing and what is success for one person may not be for another. I would define what success is for you and then set some goals towards becoming successful. And don't be afraid to change/modify your plans and goals. You're young and there are many curves in the road ahead of you.

The biggest thing is to take action.