All Forum Posts by: Joe P.

I think you're banking on a refinance that's in someone else's hands. I'd prep for something in the middle - an appraisal that doesn't quite hit your number, and then using some personal funds to cover the difference. Or, fix up the deck so the appraisal is higher, but again, all subjective and puts control into someone else's hands.

If you've already eyed a property and its a winner either way, I wouldn't wait for a lot of these personal steps to come through. Maybe get it under contract so its yours? A deal is a deal and funding is just a vehicle to obtain the deal; if you can do it conventionally and don't want to lose it (always a possibility in this market) then go for it.

External appraisal...best you can do is average comp and if your exterior looks like crap, you'll have a lower comp. If you have a number to hit maybe try to speak to the appraiser directly. You're reliant on someone else to kick start the process; can you cover funds with personal money if the appraisal doesn't come through as high as you hope?

Definite no from me. 324k purchase price for $2200 in rent per month? You'll be losing money.

The only way this might work is if you were househacking and someone was covering your living expenses -- partially -- and then I don't think it's a terrible idea if you live there for several years. If you have the ability to put 100k down for a purchase, I agree with @Greg Scott on trying to find smaller single family houses with better numbers and spread the wealth a bit.

I'd go agent first. A property management company might have leads on LL/POs who want out, but chances are they're going to offer them up to current clients first with a track record, or the LL/PO would more than likely put it on MLS first.

Honestly if you're seeking property start with free MLS (Realtor, Zillow, etc.) and engage an agent. Assume 10% of rent for management of an income property, much more if its a short term rental.

First thought that came to my mind were my family trips to the Poconos as a kid...in the winter. These are paved roads but the elevation gets up there rather quickly. I remember one storm...on paved roads...my dad trying to get our Ministar up over this particular hill. Thought I was going to die like 6 times that night, and I think I was maybe 7 or 8 years old.

This is gravel which means its going to be that much harder during rain or snow. Some of those parts looked like they were pretty steep, not to mention some had what appeared to be a cliff you could go right over if you accelerated too quickly over. YIKES.

You can disclose this all you want, and you can safeguard all the bad areas all you want...but play it out. Someone's going to book you, they won't be able to get up that hill. Then what? "My VaCaTiOn WaS rUiNeD!" emails go to AirBNB, you'll have to refund that, you'll get a bad rating (even though its disclosed), and AirBNB might even penalize you. This is all worst case scenario (actually, worst case is a family goes off one of the 13 ledges I saw especially in the middle of the night with no lights)...

I don't know man...kudos for bringing this up as an issue, that's a smart idea. But unless you've got a tour guide up there or some stadium lighting, I think it's gonna be rough sleding.

@Jim K., sorry to hear this happened. Sorry for your tenants, too...both the good and bad. Drugs are bad business and hopefully the good tenant stays good and doesn't become bad. Sometimes misery enjoys company...they are pressured just to "try it once" and then bam...hooked. Terrible way to live.

I don't know if anyone said it, but I would think my first call in this situation would be to a lawyer. I'd like them to hear the situation, check my lease, and tell me my options to move forward with the end goal in mind, which is to evict everyone except Erica mainly, or evict all and start fresh. Don't know if you've done that, but it might be worth a consultation especially vis-a-vis moratoriums and any local ordinances we won't be acutely aware of.

While I support getting the insight from folks here who might have done it, your situation is unique both to your property, your tenants, your local ordinances/area...therefore seems serious enough to speak to an expert first and foremost. I like the idea of calling the police and getting a report, that seems smart (if a little delayed), but now, change your approach -- don't come at this with message-board-anecdotes or "trying to do what you think is right" -- talk to an expert to do this correctly.

Not a lawyer, this is not legal advice.

@Bryan Stocklas I'm in PA/NJ, had a seller say he was going to sue me for the time spent not being able to get a loan secured due to a flood plain.

I told him...bring it, dude. What do you want, my 1000 EMD? It's yours, you big fat baby. Or just hold your horses so I can try to get a different broker to get me a loan. He's screaming and complaining, I'm laughing him off.

6 days later I found a broker willing to loan, we go to table 45 days later.

People do this stuff all the time. Unless you're served, you're not served. And if people really are complaining with EMD on the line, just forfeit the EMD and walk away (assuming its 1000). If you can't afford the 1000 EMD loss than you probably aren't playing in the right sandbox. But a judge would see a forfeit of that and laugh their stupid case right out of the room.

Or, just find out what this amp service replacement will cost and just get it done. I mean, what's the number at the end of the day, $2,000? If the deals a deal than what's a $2k investment that won't mean anything 6 months to a year from now for you?

Seriously...look at the facts of the situation. You haven't been served, you can't get a loan because of the amp service, ask around further to get coverage (I'm sure you can), get a quote for the cost to upgrade either way, and either negotiate with him to split, cover, or GTFO and let him take your EMD if necessary. Non-issue.

Dude...when? No one knows. Everyone asks. Not a soul knows. Could be tomorrow. This could be the new normal. Could be something in between.

Identify an area or a set of areas where its a nice enough neighborhood and the prices of homes make it reasonable to invest (think 1% of the purchase price for rent, or better) and then start learning those neighborhoods. When the deal comes along, you'll know it. And then act. Don't spend the 300k in one spot.

All this market does is tell me I have to make sure I set and maintain my standards for purchase. Instead of buying 1 out of every 100 houses that come across my desk, I'm probably at 1 out of every 500. Last purchase was in June 2020. Nothing meets my criteria...yet...but there are things that are close.

The waiting game is a suckers game. The truth is you need to know what you'll be comfortable with on a purchase and operational level, and then dig for it. Maybe there are some properties on MLS sitting for 3+ months where an owner is like "why can't I get an offer?" so make that guy an offer.

Or, just take your 300k and give it to an investor or stock manager. They can probably do more for that money than you could, at this point.

Big moves ahead! But wondering if the approach should be vetted..

Could you remain at your company but in a non-executive role? Maybe taking on a role with a more normalized work-life balance for less money, but perhaps remote and still netting 6-figures or close?

Then, instead of selling your home, could you realistically rent it with a tenant and HELOC for a down payment elsewhere, like in FL? Tenant occupied, continuing to pay down your mortgage, expenses covered, managed by someone else...and you're hanging onto a nice property in CT that you could sell down the line as someone builds equity for you?

I really like the idea, but I (personally) don't take change well. I'd look to slice of pieces one at a time (or not slice) for comforts sake. If you like the company and the line of work, but maybe not the job...see if that interest is mutual in something more reasonable for you. Doesn't have to be a slice and dice approach.

Joe - been adopting this "never sell" idea as well. Of course unless it makes sense (under performing property, cashing out for a 1031, exiting and living off your proceeds, et al).

Even without appreciation, cash flow should come with equity pay down. Someone is buying you cash every month if they're renting from you. That equity can be used as a tool, as a proceed, as whatever you need it to. That's the long game.