All Forum Posts by: Account Closed

 I've worked with Karan Woods (note the spelling of her first name) at EvansvilleHomeForRent.com.  I've been very happy with them for the past two years.  Give them a call if you want more info.

Hi Gabriel - I'm not interesting in buying...in fact I've listed both of my rentals in Evansville for sale due to some unforeseen circumstances on my end. You'll see them on the MLS within a week or two.

@Robert Caturano - My property manager charges 10% of rents.  Repairs under $200 they take care of without contacting me.  It's been a terrific arrangement.  I no longer have the rental here in Colorado - sold it and paid off my own house.

 My experience is it is dependent on each auction.  I have purchased title insurance when it's available.  I have actually had to use the title insurance on one of my rentals.

 I would talk with an attorney.  My experience is it depends on where you are on the list...and if you try to foreclose, you need to send notice to all parties involved.  If there are folks in front of you, they may not have interest in taking possession and have more interested in getting their money from the jurisdiction (which you will pay to redeem the liens if you plan on taking possession).

If they are good tenants, then I don't see what the problem is.  If you raise rent by $25-$50 per month, then your net is $300 - $600 a year.  Are you managing this property yourself or are you using a property manager?  A property manager will charge a fee to place new tenants there....you're also going to have to carry utilities while the home is vacant.

If the tenants are happy, let them stay and enjoy the revenue while you stash that cash to be able to re-invest it into the property after they vacate.  Once they do, then spend the money to upgrade the interior so you can charge a premium over market for a nicer place.

If they aren't paying rent on time or if they are trashing the place, then don't give them the option and ask them to leave.

I believe Florida is similar to a few states I invest in.  With relation to tax liens, I currently have a couple in Arizona.

I purchased the liens after the auction (some juridictions have leftover liens that if they aren't won at auction, you can purchase outright - earning the highest level of interest available...18%).  A few years ago, I purchased multiple liens against the same property owner, as well as a couple of others.

Last year was the first year I was eligible to redeem those liens (after the 3 year statutory period).  I contacted an attorney and we started the foreclosure process on three liens.  One was redeemed...I received 18% interest less the processing fee and my lawyer's fee for the noticing process.  I lost money.  The other two went through the full foreclosure process - I was able to buy two building lots for about $3,300.  Similar lots in the area are currently available for $5,500.  The two I acquired were previously sold for $9,500 in 2006 and for $17,500 in 2005.  The 2008 recession hit these lots hard.  Annual property taxes are about $65 per year so they are worth holding on to until they sell.  The two lots were owned by the same person who after foreclosure, got his back end in gear and paid the liens off on the rest of his properties - so without noticing, I got 18% interest (less the service fee) on three other lots plus my principle back.

This year, we sent out noticing on one lot.  No response.  The lawyer was paid his retainer to start the foreclosure process.  If all goes as it did last year, I will have possession by the end of December.

Is it worth it?  So far, so good.  Just don't invest in areas where they bid down the interest rate to 2% (or even less).  It's not worth your time - you can get that in bank interest.

 I did it over the summer a few years ago and had someone finish it off for me in the early Fall before the snow flew.  I also offered the local fire department to tear it down - they said they couldn't because of environmentalists.  I'm sure Chicago has stricter restrictions than Leadville, Colorado (back in 1999).

For the two in Indiana, my property manager has a crew that does maintenance - and they are the eyes and boots on the ground for the property.  It's worked out really well.

Here in Colorado, my experience is different.  Tenant reported a leak in the roof WEEKS after it should have been reported - this happened twice and resulted in extensive PLASTER (not drywall) repair.  I've also received three notices over the past year and a half about weeds being over a foot and half long from the city (which could result as a lien against the house).  Imagine a stench of cat urine throughout the house, dried cat feces in a front room closet and on the back porch, unwashed roasting pans left in the warming drawer of the stove, etc.  My property manager's office is less than a mile and a half away.

That tenant moved out on May 5...and that house is under contract for sale after extensive cleaning (I could take the proceeds and buy two or three more in Indiana with my awesome property manager taking over).  Here's a few images of what was left upon move out (could be worse)...

Yes, those are holes the size of a quarter in the wall - it cost him (his deposit) $246 to have repaired - apparently the result of a flat screen TV, speakers on the ceiling mounted along the opposite wall, and speakers mounted on the opposite wall...in a 625 sq ft house.

I did it once.  Bought a house on three lots.  Bought a 16' Car Hauler Trailer, and a tow rope and tore down the majority of the the house myself.  Was a ton of fun/stress releiver.  Nothing like swinging a sledge hammer or tearing down a wall by tying a tow strap through a couple of windows, hooking it up to the rear frame of your truck (or jeep) and slamming the gas.

I paid a guy to finish it up (before the snow flew) and sold the property on a seller financed mortgage at 9%.  If I remember right, I made $20k on that deal - and the buyer built a house on the lot and sold it for $379k

Before I did it again, I would look to see what water taps costs (most places it's about $35k for City Water) and go from there.  Your mileage may vary.