All Forum Posts by: Michael Herr

I have several rental houses in a bad neighborhood that I want out of.

Current tenants who are perpetually late but catch up every tax season want to buy the house.

Rents for $450/month. I own outright. It might sell to an investor for a few grand. Tenant wants to buy for $18,000

That is a slightly above market price, but they can't get financing because of credit and I don't want to finance myself. I would loan them for the down-payment.

She said she had around a 600 credit score and no family that can help.

Any ideas to find them financing?

The most important question is why is there mold?

If a previous idiot vented a dryer inside, or ignored a leak or its because a wet basement, or something that you are reasonably be sure can be corrected, then put an offer minus the cost to fix it.

Not a buff on the climate in CO, but a big exhaust fan and some mold spray or bleach might be enough.

Get a list of every bank in town and call them all, starting with your current banker and focusing on the local banks.

Many won't do that loan, but you only need to find one that does.

From what I hear, Zillow is very different in different areas.
In my area the appraisal estimate (zestimate) is pretty close (maybe plus/minus 20%) if the house is similar condition to its neighbors. As long as you can figure out if something weird is throwing off the calculation. For example if the house is listed for auction and the opening bid is 5k, zillow will use that 5k as the asking price and the estimate will be way off.

The zillow rent estimates are much worse. Like plus/minus 50% on average(again your area could be different). Could even be more.
Don't bother doing that level of calculations without at least getting a good rough estimate of how much the place will rent for.

If they are a tenant, then evict. Since you mentioned quit claim deed, then they likely arent tenants, they are homeowners, and you are more or less the bank, and judging by the title of your post, you probably don't have good paperwork.
I'd go over there with a stack of 20 or so (depending on home value) $100 bills and if they agree to go to the courthouse immediately and quit claim back to you they get the money.

I would also add that the 2% rule doesn't work for super-low priced/renting properties.
For example a 25K house in a war zone that rents for $500 is a horrible deal (in my area at least) even though it fits the 2% rule.

I am trying to secure financing/refi's for single family homes held as rental property.
All the local banks I've talked to have been unanimous:
If the LLC owns the home, they can only give me loans with 5yr baloons at around 4.5-5%.
I have less than 10 properties financed, so many banks will do 15-30 yr full-term financing at a better rate if I transfer ownership to my personal name?
One said 15yr at 3.5%

Are other people securing financing for single-family homes owned by an LLC? If so, at what terms?

Is the reward of not having baloons and getting a better rate worth the risk of owning in my own name?