All Forum Posts by: Josh Clemence

Thanks for the response guys, I am leaning towards telling them no, and listing it with the Realtor. They will have to figure out a way to get it done that way. Any other opinions would be appreciated.

I need some advice on a property sale that I am planning. I just spoke with my Realtor today and he says we can list it at $60,000 and probably get around $50,000 to $55,000 for the property. I just spoke with my renters, whose lease is up, and they are interested in purchasing it from me. Here lies the issue, the wife is pregnant and on disability leave until the middle of September, according to them they have pre-approval from a bank for a loan contingent on her being back to work. If I sell to them I am sure I can get the deal done at $60,000. They inquired about doing a option contract that would come up in September or October, at which time they would purchase from me.

So here are the numbers.

Sell through Realtor

Selling price of $55,000
Realtor Comm. $3300
Closing Costs (Quess) $2000
Mortgage Payoff $12,000
Pre Tax Profit of $37,700


Sell on Option Contract

Selling Price $60,000
Closing costs(Guess) $2000
Mortgage Payoff $12000
Pre Tax Profit $46,000


How much should I make them put down on the option contract and is the additional $8300 worth the risk of not selling during the peak selling season and having the deal fall through. What would you guys do?

Not sure if you have a Menards in your area, but you can get a pretty good deal there on Jeldwen windows.

The houses I rehab are older houses, and they typically have big windows which have to be custom ordered, and the prices are really reasonable. The last house I rehabbed for a rental needed new windows and nearly every window in the house was 26'W by 72"H. Those only cost me around $100 each. Just get the base unit without the low e glass.

I have a lot of experience with them. The tricky part is that where I live, the Indiana Brown Bat is an endangered species so you can't get an exterminator to do anything. You have to stay on top of it, or they will keep trying to come back, once they nest in the house they will continue to try to get back in.

Here are the things I know work from Experience.

1) Moth balls in atttic, open the vents and throw them in. They don't like them and will leave.

2) Put lights up the attic and leave them on, they don't like light.

3) The most important is, get some Great Stuff spray foam, they kind that cures hard and fill every opening. Look for openings where they are coming in and out. A sure sign of a an opening being used, is this black grease like substance around the opening. Once you get the foam in it, use some wood or metal to close the opening permently.

3) Use silicon caulk to seal up any small opening on siding and and vents, they can get in very small cracks. Think mice, as they can get into the same types of spaces.

4) Get some of the electronic rodent/pest deterent devices that plug into your electrical system. The best ones are the ones that work by going through the electrical system. Put one on each floor.

If you pay attention around dusk you should be able to see where they are coming in and out. Where I live they are really common, and can be a real pain. Good luck, if you put in some effort you should be able to get rid of them.

Do you think this would still be the case in a smaller community. This a small town. A local bank holds the mortgage, they also know my mom and me very well. I will need to get additional insurance, so I am csure they will find out. As a small local bank, I don't believe they are under a lot of pressure with the current foreclosure crisis, the housing market here is still pretty strong, and there is not a lot of foreclosures.

I would like to here some input on that, if anyone has experience/opinion.

Won't recording the deed prompt the current mortgage holder to want their money?

This is unfamiliar territory to me so thought I would as here. I am going to talk to my accountant next week, but thought I might be able to get some information ahead of time.

I am in the process of buying a house that my mom owns essentially for just what is owed on the mortgage. She currently has a mortgage on it with an exceptional rate, that I won't be able to duplicate since it will be a rental property. The initial plan is that we have a lawyer draw up a contract to purchase, for which I will make payments to her monthly. She will get a Deed signed over to me, but not file it.

The first question is do you see any major holes or problems with that?

The second question is, what are the tax implications? I am thinking I am not going to be able to take the interest deduction, depreciation, repairs, or any other of the operating expenses as deductions on my taxes, is that correct? It seems I should be able to deduct some stuff, as I will have to report the difference between my payments to her and gross rents as income, but I just have never dealt with a situation like this before.

Any input would be appreciated.

Goals for April:

Finish my current rental rehab and get it rented before the end of the month.
Work on building my investing team: specifically a good Realtor and banker.

Locate another SFH to rehab for rental.

I get mine from Roush. My agent set it up.

It is a little pricey.

They will refer to it as Empty Dwelling policy or Construction policy.

Global Warming is a real but everyone needs to decide for themselves!! Everyone should read the book The Weather Makers, before you draw your own conclusion. It a really great book on the subject, and explains how it is happening, current effects, and long term effects. Check out the link below.

http://www.amazon.com/Weather-Makers-Changing-Climate-Means/dp/0871139359