All Forum Posts by: Jennifer Z.

1. Ask other BP members in your investing area.

2. Phone interview all of the options, ask questions about their process, if they manage in the particular area you are buying, fees, and get a sense if you can work with this person.  Also, note the way the receptionist and other office persons field the calls because this is who your tenants will interact with.  

3. Call references (current owners) of the property management company.  They will be real candid I've found.

4. It will help to read a book like Brandon Turner's "Book on Managing Rental Properties" to understand what processes to look for and know what property management entails.

Agreed @Basit Siddiqi.  If your numbers work, then go for it.  You are in this for the long term.

USDA loan

VA loan

FHA loan or FHA 203K construction

Seller financing

Hi @Byron Scott, 

The basement would not be considered a unit if it is not an equipped rental like kitchen, bath.  It sounded like an empty basement.  So, your comps would be other 2 unit properties.  

If it was in fact a third unit, then the appraiser will have to widen the search area to nearest counties.  I have had this happen, and it brought down the value of the property, but it could go the other way too.

In Oregon, we are only required to have a heat source, so check with GA laws.  Usually AC units will do for the cooling source in most areas though.

Yes @Charles Burgess, I have used a USDA loan for a primary residence purchase.  It was a great option for zero down, and I actually received about $500 at closing too.  

Anyway, my caution is to make sure you are purchasing the property at a reduced price or improvement plans to increase the value.  That way, you do not get upside down.  

Also, make sure your PITI payment and rental price for the area make sense with expenses subtracted. You never know when life changes, and you may need to rent it out in the future.

Welcome @Willie Cunningham!  Great job starting your journey!  Analyzing deals is super important and knowing the sale prices in your market is helpful too.

If you found a buyer, then why not do the deal yourself.  I am unaware of Hawaii laws, but in Texas I sold a property without agents.  We just used the helpful title company for the paperwork and any questions.   

@Eric Schwake thanks for the question!  I had not heard of Roofstock before.  It is an interesting business model, but they do charge a 0.5% fee for their part.  So, I would include that $4000 in your discounted offer.  

Also, if it has been on the market for that long- over a year, then I would offer a much lower cash price.

You didn't say what the rent was either?  And, I would want to know what the estimated market rent is to determine if that is a benefit to you.

As far as the deal, everyone runs their expenses a little differently.  I am a more conservative investor, so I would budget 40% expenses which gives a buffer for unexpected issues and eases my mind :)

Whoa!  I would run away from that idea as fast as I could.  The idea of having 10 people with all their individual opinions and plans to deal with on a property purchase is scary.  If you are set on doing this, then you should consult a lawyer to draw up a contract detailing all the possible issues (death, sickness, divorce, etc) and everyone's idea on how to handle it.  This does not sound like an investment, but rather a convenience purchase.  I would run the numbers on how much money you will be putting into this property over time, and whether you would like to visit many different places over time and possibly saving money.

usa.com 

city-data.com

trulia.com

areavibes.com