All Forum Posts by: Jared Lundy

Thank you all for your responses.

It is a sticky situation.
The renter was married to the grandchild of the owner for 11 years. 2 years ago the couple got divorced and the grandchild moved back in with the grandparent leaving the EX to pay rent on the house. The grandparent is 78 and doesn’t want to deal with the hassle of owning the house anymore and just wants to sell it. There is no lease in place but the EX has never failed to pay the $400 rent. Unfortunately the grandparent is losing $200 dollars a month on this property but the EX can’t afford to pay anymore than the $400 they are now.

But the EX still does not know the house is getting sold.

I have the joyous privilege of letting them know on Friday.. :)

I am pretty new to RE investing and I am in the process of buying a little rental. There is a tenant in the rental who has lived there for 13 years but is only paying $400 month but there is no lease in place.

The owner has told me that they have never had a problem with the tenant but the owner feels the tenant is vindictive and will trash the place if the tenant finds out they have to move.

According to the owner the tenant cannot pay the $750 - $800 month rent that the house can rent for. 
I am putting it under contract today and the tenant still has no clue the house is being sold. How do I go about telling the tenant and getting them to move out of the home they’ve lived in for 13 yrs hopefully without them trashing the place?

Thanks

I recently came across a guy who offered to sell me 5 rental properties in my area. I am just starting out and do not have much cash currently and the seller said that he could not finance them to me because he wants to 1031 exchange the money into properties in  his area. I’m supposed to be looking at them all in the next two weeks and getting back with him on whether I want them. If we do come to an agreement in price what would be some advice on getting that money together? A bank probably won’t want to lend that much to a new investor and the hard money lender around here won’t lend that much either.( it would probably cost around 400-450k)

Any advice or thoughts are appreciated

Thank you both for your replies!!

We found out that the reason there are only 9 trailers now is due to some sewer restrictions by the county and in the future there is a possibility that 9 trailers wouldn't be allowed there so I decided not to buy it.

Thanks! 

I am fairly new at Real Estate Investing. I have come across a potential deal for a trailer park in the Carthage, MO area. Some out of state owners are trying to sell their 2.7 acre park for $84000. I went and looked at it last night and the park and the trailers on the park look pretty rough; It all needs to be mowed and generally looks uncared for. Currently there are 9 trailers on it and the rent is $1626/mo but owner pays water and trash removal. The owners say that there used to be around 30 mobile homes on the land so I am guessing there are or used to be hookups for that many mobile homes there.  I have a small list of questions that I am going to ask the current owners, but I wanted to have others thoughts on this as I head into it. Any questions that I should ask of the current owners or anything that I should look at or be aware of as I look at this mobile home park? 

$1626/mo feels low for 9 trailers but from the looks of the trailers that are on there if I bought it and raised the lot rental then I would probably loose the majority of the current renters. 

This is pretty much all the info I currently have. I just got the lead last night so I am just getting into this thing. :)

Thanks!!!

This would be my first rental property and it is 45 min from where I live. There aren’t any property managers out that way either. It is an older building so maybe I should pass on it and start out in the rental market with a property that’s a little easier to upkeep.

I am looking at buying a 5 plex in a very small town. It is about 15 min in between two other towns that have a population of 4000 and 8000. They are asking 100000 for it and it gross rents equal about 2250 a month. The owners are open to negotiation on the price. The problems with the unit is that there are several water leaks and it looks like the whole roof will need to be replaced and the total cost of that along with other repairs would be closer to 35000. If the unit was full fixed up, it would only be worth around 120000 probably so there is not much place for building equity into it. If i could get the price down to 70000 then i would be all in for around 110000, but even in future i don't see this place increasing in value much. It would cash flow though between 700 to 1000 per month. My question is, is it worth it to buy an older 5 plex that wont really increase in value in a small town but it will cash flow (at least it does right now) or because it will probably never gain much equity and will continue to need repairs, should i pass on it? 

Any thoughts are welcome.

Thanks everyone for your responses.

I love the concept of house hacking, but I learned of it after I bought my little house with my wife on an FHA loan and house hacking won't work for us in our current place.
My current plan is to work with a traditional lender. The lender is totally fine with the house needing a complete rehab and they will finance the purchase and rehab of the property for 20% down of the purchase price and will refi for 80-85% of the ARV. I am trying to run the numbers on at least one house per day just for practice. The hard part is trying to get accurate rehab estimates for a house. I have a contractor who I've heard is trustworthy and I'm planning on meeting him in person and walking through a house with him to see how he estimates rehabs.

I like the brrrr method because I don’t have a lot of cash to put into purchasing a house right now but I am really wanting to start investing in RE as soon as possible. The brrrr method will give me back my initial investment(if done right) so that I can go buy another house  or a multi unit.

I am wanting to start investing in real estate and I live around the Joplin, MO area. I am in the process of getting pre-approved and then i need to find a house and buy it(I am currently looking for houses while waiting for Pre-App). I am wanting to do the BRRRR method because i want to build up a passive flow of income and i love the concept of the BRRRR. Any advice for a newbie starting out on this adventure?