All Forum Posts by: Diana Frasier

@Bjorn Ahlblad

Thanks! Nope I bought through traditional/MLS sale. The seller did purchase through a seller finance deal previously so not sure if that impacts it

Oops sorry the tenant moved in 3/28/20

Hi BP Friends, I bought my first rental in San Antonio, TX on 12/31/20. Tenant moved in to start 2 year lease on 3/28/19. Within one week, the plumbing fixtures (toilets, shower, jacuzzi bath, combo shower/tub) backed up with sewage and flooded the house. Plumbers say it has been a long standing issue based on their assessment - there is a very large belly in the plumbing and two separate plumbers say there is no way (in their opinion), that the prior owners could not have known/had issues before.

This was not disclosed. To add to it, the sellers moved out ASAP when we were under contract and had shut off the utilities prior to final walkthrough. They paid for a home warranty since I thought we should delay closing. The inspector did not note any issues and it’s a 2008 build, so he says he had no reason to recommend hydrostatic pressure testing.

All this to say, thankfully a large portion of the $40k repair is covered by insurance. I’m out about $6k and six weeks of misery at this point. From some more experienced landlords, would you take action against the seller?

Thanks in advance for any help/advice. I’m struggling with this situation

@Mo Muigai

I closed on a SFH in San Antonio on 12/31/19 with 4.875% (0.1 points and no origination). It was a conventional (non LLC), 20% down, 30 yr am. Got quoted at 3.25% for a 15 yr from my credit union.

I negotiated quite a bit. As an easy way to save $$, I always take my best quote to Better.com and they will beat anything by $1000. Not an ad, I’ve just genuinely had a good experience from both an investor and personal perspective. They’ve never not beat another lender’s quote for me.

Hi BP Friends,

I bought my first rental on 12/31/19 and took about a month to complete repairs and get the listing up. I’ve had no shortage of low income, low credit score applicants and the interest is there so I’m not worried about my price point. However I’ve noticed most highly qualified tenants don’t want to move until closer to summer (I know seasonality is a thing).

On that note, I have a great prospective tenant who is PCSing here with the military as a doctor at a local military hospital. She can move in May 1. Is it a huge mistake to wait for her? The cost of having the house vacant isn’t a cash flow crunch for me, so I’m tempted to wait for a top notch tenant vs accepting one of the borderline people who have applied so far. Any tips to make the economics better or things I should be aware of? She’s ready to sign a lease

Thanks!!

@Tamara Deering thank you for the info! I’ll keep this in mind. I know especially on that side of town there can be quite a lot of shifting. I’ll definitely think about getting the seller to repair. Thanks!

@Brandon Miller thank you so much for your response! Unfortunately someone swooped I’m with an all cash offer but I’ll keep this in mind.

@Sameer Lalwani

I'm just looking at my first property so don't have a ton of experience but I have asked one potential lender about originating the loan and later transferring it into a LLC. LoanDepot said that was not an issue for them. You can often just ask your lender upfront if they will trigger the due on sale clause.

You're probably better off from a return perspective to do it under your name then shift to a LLC. I plan to do that eventually, if not with the first one

Hello! Curious for others’ opinions on a deal I’m looking at for my first investment property. I live in San Antonio, TX and am pretty familiar with the market.

Deal highlights: $165k purchase price, estimating 6% cash on cash return with 7% vacancy and cushions for repairs, legal, advertising, etc. Cash flow of $2-2.5k per year and a taxable net loss.

I’m torn because the numbers are good and the property is in really great, no rehab condition, BUT a house a couple blocks away and built by the same builder (subject property is 2012 and comp is 2006) has foundation issues and is selling at a discount for it.

I’m thinking this is risk/reward at play! I’ll also note that this is a nicer pocket of NE side, I used to live nearby so I’m familiar with the issues on that side of town.

Thanks for reading!

Thank you @Aaron Bihl I really appreciate it and will reach out!