All Forum Posts by: Shawn Holsapple

Each county has different rules.

Overall, I believe all "loans" are free and clear. Where you have to do your research is if utility bills are paid off.

In Marion county, for example, all bills and liens are taken care of.

In Johnson county, however, some small towns [like Whiteland] are not incorporated and can't put the utility bills as a lien and the buyer is responsible for them after the sale [ask me how I know this!]

Good luck

Welcome @Jeremy Tillotson !

It's always good to see another Hoosier on this great site.

Welcome @Al Turner!

In addition to Brenda, Meridian & Eagle Title do a very good job as well.

@Steve Smithy I'd be glad to take at look at the Indy props to see if I can move them for you or, buy myself.

Like @Mark Whittlesey said, it's all about the management and it sounds like you are experiencing the typically run around of a poor PM. Next to contractors, they are the hardest to find & I've fired dozens of both...

@Steve A. I wish I was doing what you're doing at 28 years old!

Being in a sellers market for quite some time now, the Indy inventory keeps getting smaller. The MLS is nearly picked clean and most wholesalers are low on inventory as well. I have to make several hundred offers per month just to close a hand full.

The next challenge is the 2% rule. One can find properties that fit this around the $600-$700 rent range [SFR]. Once you go above that, it because very difficult to find home that rents for $800 and can be purchased for $40k all-in.

Do you have a minimum rent range you are willing to work with?

Actually, @Taylor Jennings hosts it. Here's the link.

I would never recommend to EVER do self management. I tried this and it's a time bandit for one and it's isn't very fun as well.

My last 4 unit was like a Jr. High School, the tenants complained daily about each other - thank goodness they complained to my PM and not me.

Once you put a value on your personal time, it makes it easy to "pay" the PM to handle the properties for you.

Say if you value is $100 per hour and you spend, on average, 6 hours per month managing your 4 unit. That's $600 in lost time. Or, you only pay your PM $180 to handle it. At that point, if you self manage, your per hour value goes down to $30 per hour [$180/6 hours = $30] instead of the $100. So, instead of costing you $180 it actually saves you $120! [$300-$180]

The only time I self manage is with my Lease To Own properties. These tenant/buyers self manage themselves and I never have to deal with them.

That's not a very good area and the low rent just hurts the deal even more. The rehab amount really kills the deal for me. $45k all-in for ~$1,000 in rent in a rough area is on the higher side.

I'd ask the seller to make the other side rent ready for the same price. I know it's a stretch but you never know.

Otherwise, I'd walk away!

I've owned several of these lower end doubles and singles and hated them ALL. I now own a total of zero of this type of property.

We can discuss more Thursday night at the BP meeting.

I usually look for a few qualifiers:

Must have a good, fixed, APR locked in. Preferably under 5%

PT&I must be less than market rent. I prefer at least $200

The balance of the loan must be below the current appraised amount

If I can get all of these to line up and the seller is motivated, then I move forward. Note: I've only did this with a single family home. I know there are many investors looking for "seller financing", I would think that it wouldn't be hard to find a buyer and you stay in the middle to get their down payment, cash flow and balance profit at the end.

Your above deal sounds over priced for our area and the amount of work needed. The sub2 feature definantly makes it more attractive.