All Forum Posts by: Joe Conklin

Its not something that I'm going to fuss over  From my point of view its something that doesn't involve me.  As a future tenant I did everything as it should be done.

My firm stance may in-turn force them to act on the current tenant.

Sucking it up and moving on may very well be the best option that makes everyone else but me "feel" good.

I have a situation and am here to see a clearer picture of it.  Let me first mention that I rent for my primary housing and also have a rental that I rent to tenants

To keep it short and sweet...

I signed a lease and put down funds to hold a rental in mid April to occupy a unit in mid July.  The  current tenant previously gave notice that they were leaving and was moving out June 30th.  Property Management company has a 90 day notice window that the tenant has to give if they don't want to renew (compared to typical 60 days).  I would think that that the same length of time would apply if they mentioned that they wanted to move out and then changed their mind to stay.

I get a notification today from the PM saying the tenant mentioned that they want to stay and they are trying to find me another unit.  For simple math the tenants gave 2.5 months notice before their lease ends that changed their mind and want to renew

I have not followed up with the PM yet because I am weighing my options.

My opinion is that this is not my problem because the current tenant did not give enough that they planned to renew their lease.  They gave notice to the PM that they wanted to stay less than 90 days before their lease ends. 

I think its the tenants issue really and the PM has to uphold the rules of the lease.  Any thoughts on the situation?  Firm stance or accept what they are telling me?

Would the following scenario be mortgage fraud?

Acquire a property 5% down conventional loan on a property that is in a state where I work.  I plan to live in this property for a year and then rent it out.  One month later I get a job with a different company in a different state about an hour away from where this property is located.  I decide to get an apartment closer to where my new job is and rent out the property that I acquired with a 5% conventional loan.

I plan to undertake my first buy, rehab, rent, refinance deal and am looking at homes in my market.  I have private money of 30-50k available to me in which I am paying out 6%.  I also am willing to put $50,000 of my own cash into the deal.  It is a little bit less than 50% of my net worth but am willing to do this because I believe that buying a fixer upper cash will create an opportunity for a better deal.  I have some reserve money ($15k) that is liquid but this is cutting it close without tapping into my company issued 401k.

Numbers:

3br/2ba Single Family
ARV: $125,000
Rent: $1,400 (conservative)
Purchase Price: $50,000
Rehab: 30K
Closing,Refi, Inspection Costs: $10,000
Taxes: $370 / month
Interest Paid: $1800
- I will add $5,000 in extra costs in the numbers to compensate for running over budget somewhere during rehab or other unforeseen costs.

* My lender has a 12 month seasoning period before I can refi and pull 80% equity out. However, I do have the option to use a HELOC to pull cash out faster as others have mentioned on this site.

80% of ARV = $100,000

$100,000 - Closing, refi, inspection - Rehab - Interest Paid - Extra Costs = Purchase Price

100,000 - 10,000 - 30,000 - 1,800 - 5,000 = $53,200 (Max Purchase Price)

Cash Flow Per Month = 

*factoring in 5% interest rate

Rent - Mortgage - Tax - Insurance - Vacancy(10%) - Maintenance(10%)

1400 - 540 - 370 - 50 - 140 - 140 = +160 per month

Any feedback on this deal and situation would be great, feel free to poke holes in it!

Hi guys, I'm looking for an investor friendly GC that is in Gloucester, Burlington, Camden counties.  Also, if there are any guys from Philadelphia who would hop over the bridge.  Any feedback would be appreciated, thanks.

 My thought process is that once I transition to full time RE, I won't need bank loans.  Right now having a W2 is a huge plus though.

Situation:

There is a turnkey listing in my market and my max purchase price is list price for the home.  This is based on sold comps and rental comps in the area.  The problem is that it is not fully renovated yet and there is a open house in two weeks (when it is completed).  I obviously have not physically seen the property yet (besides driving by it).  I would like to take the best course of action that will increase my chances of purchasing the home.

Options:

1. Contact the listing agent and see the property before the renovation is complete.  If I approve and there are no curve-balls, put it under contract before it is completed with the contingency that it will be completed as stated.  (I don't know if this is possible, but it sounds good).

2. Wait and show up to the open house with pre-qualification letter in hand and put an offer on the property.

My only fear when seeing the listing before the renovation (option 1) is that they will still hold the open house.  And at the open house they will tell other buyers that there is a full price offer is on the table with hopes that the offers will go over their list price.  If I make an offer on the home before the renovation I would need the contracts signed before the open house.  I don't want to reveal my hand to early.

Whats my best course of action in this situation?

 Thanks for the advice.  I plan to keep my job until I see a logical way out.  I like my job I just feel that I would like being my own boss better.  I feel the advantages of keeping a W2 is it being recession proof and knowing that you are getting a paycheck every two weeks.  I also feel like jumping into RE wouldn't be a huge risk because there are always companies who would hire you back if RE didn't work out (given you are successful in your previous role).

The transition to RE full time would likely be more work and more hours but also more rewarding.  The key is finding opportunities in the market and exploiting them to the fullest extent.

I researched "cash flow quadrant" and switching quadrants is something that I would like to do as well.  I feel that when switching it is like taking a couple steps backward in order to move forward past the point of where a job would take you.  Congrats and good luck to you in your transition.

Goal is to transfer from W2 job to full time real estate. I'm writing down some steps that I believe will help me progress me towards my goal. Currently I hold a salaried position and have one rental property purchased six months ago. Any thoughts on this would be great!

1. Get job that creates income to provide for living expenses and fund investments. [x]

2. Purchase rental first rental property. [x]

3. Use income to purchase additional properties. [ ]

This step currently in process, have made a few offers but nothing has come to fruition.

4. Get RE license. [ ]

I believe that this will help showing myself properties, create flexibility around my job, and allow me to capitalize quickly on opportunities in the market. Earning commission and learning the in's and out's of real estate transactions would be an added bonus.

5. Use full time job and RE license to fund and find investments while searching for ways to make active income in RE. [  ]

My initial thoughts on ways that I could make active income in RE is agent for investors, property management, flipping homes, start own RE brokerage.Running my own business specializing in one of these aspects of RE would be ideal.

6. Transition fully to RE and quit my W2 job. [  ]

At this step I would have to very confident in my career choice and have a way to replace my income completely from my job.I would then use my active income to fund living expenses and personal investments.

7. Grow my business and RE investment portfolio. [  ]

8. Sell / get rid of RE business and live off income that is produced from my investment properties. [  ]

I believe that the hardest part will be transitioning from my W2 job to full time real estate.  Any thoughts on this would be great.What do you feel is the best way to make active income in RE? (flipping, PM, investors agent, or mixture of them all)