All Forum Posts by: Account Closed

Excellent job on the rehab so far! Great progress, it's finally coming along. Good humor too in the posts, always gotta stay positive and have fun with it!

I have an interesting story for everyone here on BP. I found a home that I was going to close on this month and I just got back the pest and home inspection report. The current owner did a rehab and when I did the walk through with my agent it looked immaculate and the seller's disclosure form looked great with no defects. I recently received the pest & home inspection report and there is faulty grades and the beams supporting floor joists are sagging in between pier blocks with cellulose debris to be removed(major foundation issue), no attic access, door bell didn't work, no ventilation in crawl space, leaking drain line underneath tub, faucet leaks, 2 drawer fronts are broken at bottom of closet, bathroom closet won't latch closed, door in between living room and front porch wouldn't open (I assume this is why the agent had the lock box house key on the back door and used only the back door for showings), most all windows wouldn't open (painted closed during rehab) and missing screens, electrical for entire home was only 100 amps instead of the standard 120/220 or 200/220 (assumed this is why all major appliances were unplugged). None of the defects were on the seller's real property disclosure form and seller wants buyer to pay for any inspections and repair costs. Seller said they never lived in the property and was used as a rental/investment property, I now would have to assume the seller had knowledge about most or at least some defects that they did not disclose in the seller's disclosure form. From experience when I have tenants they will complain about the slightest defect for me to come in to fix or I would find out the defects myself when I do my quarterly walk through inspections to make sure my tenants are properly taking care of my property. Even my loan officer was very hesitant to send the pest & home inspection/paperwork to the underwriter in fear of it being declined. Now it is time for me to abort mission and take my earnest deposit back due to a major flaw and unreported defects not in the seller's disclosure form and journey onto the next home. Hope this helps anyone on BP about the reasons to always perform proper home inspections and to do your own due diligence prior to closing!

Yesterday I had to call in a plumber for the same problem (drain was clogged) and I paid $150. I paid $98 for a minor clog a few month prior to this one. I'm in the NV market area. I guess it all depends on the plumber and market area.

Buying all cash would limit your growth in other opportunities in other investments as your tenants could pay down your mortgages on multiple properties if you decided to use leverage. I would consider leveraging but not to over leverage to the point the mortgage/PMI is too high, there is not a right or wrong way to do it, it all depends on what you personally would want to do. If your young in age using leverage is understandable, if your approaching retirement it could make sense to pay in all cash to get a stronger monthly cash flow as a rental and avoid a 15-30 year mortgage.

I am a 22 year old real estate investor. I just sold my first home today and should be going into escrow soon. It was a huge 2,000sqft 4bd 3bath on an acre in a very rural area. Previously used as a residence then a rental. It was a great personal residence but I learned it was a lot of maintenance for such a large plot of land/size of home to maintain as a rental for others when one could essentially just have a quadplex. My next journey I will be purchasing a smaller home for myself 2bd 1bath with minimal maintenence, small yard, ect. Then eventually turn it into a rental property when I move out. My plans were to buy it right with an all cash offer to save a monthly mortgage expense and have instant equity, then a year from now I would move out and obtain a loan or heloc for a second home that I would then live in and eventually rent as well. The first home would be a necessity for I currently have no where to go after selling my home. Any advice on this would be very helpful. How much should a rental should cost to monthly cash flow ratio. Im located in NV and I see some property in this town rent for $750 monthly and selling for $80k-$120k and not much to choose from here (Very few listings). Not hesitant to invest in other states at all I just don't know the numbers as well as locals in other states and communities. I know there a lot better market places out there but wouldn't know were to start. I really appreciate the support from bigger pockets, I have been learning a tremendous amount of knowledge and applying it in my current situations and couldn't be happier. Thanks BP!