All Forum Posts by: Jacob Price

Depends on your lease. We use an addendum for our clients that states the following:

"Tenant understands that if the washer/dryer is provided in their home, it is for your use until it breaks. The owner will repair at their option."

This would allow you to choose to fix it, but I'd agree with the above replies. I'd fix the unit.

@Shayna Hatcher

When we screen tenants, if they have had a felony within the past 5 years it's an automatic disqualification. Stick to a criteria and the tenants will eventually come. Here in our market we have an average of 30 days from listing to move in.

I think if you have the time and knowledge FSBO can be worth it. Sure, it's more work, but you could save yourself at least 3% on your sales price.

Just make sure you read up on negotiations, find a good attorney, and make sure that you price the property competitively. 

When I acquired my duplex it had tenants. One of the contingencies of the sale was that the property had to be vacant and you get a final walkthrough. This protects you from 'horror stories' in inheriting bad or poorly trained tenants. It would also protect you from the tenants destroying the property when they leave.

This is exactly what I did and had no problems at all. 

As for the lease and obligations to it. The lease comes with the property and if the lease is extended such as a 12-month lease then there isn't anything you can do unless something in the lease specifies the sale of the property, which most don't.

It most likely won't be a problem. If you have hesitations about it due to the well then calculate that into your cost to rehab. If the well is good then you make more profit otherwise you redrill and it's business as usual. 

 If you could get $300 with an all in at 10k then you better do that! That's 3% a month with only having to manage the land... That's fantastic returns. There are a lot of things we are skipping for the sake of conversation like property taxes etc but yeah if you can be all in at 10k and get 300$ a month, I'd do that every day of the week. 

Also does it have access to a road or are you going to have to create one? That's always another potentially larger expense to think of. 

Congrats @Chad Forgue!  You are most likely fine, but I'd check the code on whether you can put a mobile home on the land. In the past few years one of the counties that I work on tightened up and isn't allowing a mobile home to be put on a property unless the property already had one. Most likely not the case for you, but just wanted to mention it. 

Is it in a somewhat desirable area? Sometimes you can partner up with someone that does new construction etc and take part of that deal.  It's great you are already looking at ways to get more money out of it such as selling the timber. 

As for your last question, I've seen a lot of people that post ads or signs saying that you will pay for them to move the mobile home they have. That would cost around 2-3k. Then you wouldn't need to buy a mobile home or upkeep it and could just rent the land. Aka a tiny mobile home park of 1. Best of luck!

 I'm not sure of the laws in your state, but in Virginia you can't keep the interest from the security deposits. In fact on security deposits held over 13 months you have to pay interest at the federal base minus 4 points. This is in Virginia, but I'd recommend everyone checking there state laws concerning security deposits. 

@Drew Bonner That's great man! Hope you find a sweet deal. I bought my first investment property last year in Bedford. I'm in your neck of the woods, so if you ever want to grab a bite or coffee let me know!

@Zach Sikes Right. That's what I've set myself up with so far. The team I've joined is very successful and has a lot of experience with the assets that I'd like to work with.