All Forum Posts by: John Akolt

If the property changed hands once then the person who owned the right did not exercise it and it's gone.  The new owner would have to agree to a new first right of refusal (and would want something in return-- $$)

It depends if you are willing to take the risk of a possible eviction.  Most people will leave without damaging the property.  The few that fight it in court will swear the rent was prepaid for 2 years.  

I would request the current seller to obtain a written lease with the tenants as part of the sale based on the terms they say are in force.  At a minimum, I would get a written disclosure from the seller and/or hold some money in escrow until existing tenants are gone.

You will need an attorney, maybe 2.  I would suggest you have your attorney draft a real estate contract with the purchase price and terms (conditions including inspection, how attorney fees will be split, etc).  This will be cheap.

You may need escrow service even with $0--depends on what the seller requires.

If everything checks out then have the other attorney (seller's attorney) draft the note and deed, etc.  Not cheap but absolutely required.  

The first attorney can review the documents and will help you through the closing with title company, etc.  

Yes, your counter was a rejection of their offer.  There is no exclusive negotiation period--in some cases you may go under contract and then attempt to pay a lower price because your inspection discovered XYZ.  

Follow all of the terms of the agreement and it's "locked" (don't forget earnest money, lead paint disclosures, etc).   You need to know your rights if there is a breach of the contract by the seller.  Look at the language in your contract. If the seller defaults do you have a right to cancel the contract plus damages or a liquidated damages amount, or a right of specific performance (force sale)? 

I would buy one SFR first. Make a few improvements and iron out your process for listing and renting the property. You'll quickly make a ton of mistakes that can only be learned by experience. If you start small $ the mistakes won't matter too much. If you spend all your money upfront the lessons learned won't matter.

world flooring and more.  They show up on time, do good work and are competitively priced. It can be hard to get a hold of them initially though.

Figure out if the rental return after renovations would be better than the rental return of another property you could buy if you renovate the current house and sell it (less closing costs).  Either way you would have a rental.  Or renovate it and live there a few years rent free.

Basically--Look up involuntary conversion rules and IRC 1033.  There are reporting requirements on your tax return so make sure you report it timely on your tax return.  

Look into a reverse exchange.  They can be trickier dealing with the lender (if needed) and operations but avoid the 45 day rush.  Make sure the tax savings (deferral) are worth the cost of the intermediary fees.