All Forum Posts by: John Tan

14% CAP seems high based on the market. $350 rent per one bedroom units? I would rerun numbers to make sure it is that high. If so, you are getting a steal or in for massive headaches others don't want to touch.

@Wayne, my AZ contract has that same language you quoted.

In the contract it states though it is "as is", buyer retains the right to cancel and receive earnest money back.  Our realtor called his legal hotline and their opinion was we are good.  If escrow rules otherwise it is really an injustice.  How do I get them in hot water with the insurance commission?

well, update on my own post.  The dispute went into ethics committee for the escrow company and will be tied up for a least one week.  Even though in my offer, I retained right to cancel at any time during the inspection contingency.  The escrow company is in bed with the seller's agent, so they are not reasonable.  For future AZ investors, don't put more than $2500 earnest money down on your offers because $2500 is the limit for small claims court in AZ and any more money it gets complicated.....

The seller is threatening to take our earnest money deposit when we tried to cancel during the inspection period.  Because we wrote the contract “as is”, they said our reason for canceling, the property is poor condition and repairs are not done properly is not a valid reason.  But I thought the whole reason for inspection period, even if the contract is “as is” is to examine if everything is up to par during the inspection.  So I am not understanding why they are asking their title company to rule on the request.  Can anybody let me know what is a valid reason to cancel during inspection period if the contract is for “as is”?

Anybody recommend a good attorney we can talk to?

Thanks much in advance!!  (today is our last day for inspection contingency)

Thank you Linval for the link. I was more interested in whether it is possible to invest in Real Estate within the 529 plan, i.e. similar to using self-directed IRA to invest in Real Estate. I am not so much interested in whether to use a 529 plan or to invest in Real Estate using the conventional method. Due to the lack of response, I guess it is not possible to invest with 529 plan.

Does anybody know how to use 509 plan to invest in real estate? I have a kid who is two years old; I figure if I purchased the home with 25% down in a neighborhood I am already investing in (put down ~60K), I can then sell the house 16 years later when he's ready for college tax free. Is this something that can be done?

I don't have enough funds to pay cash for the property.  

Yes, I noticed a lot of people mentioned his name.  I'll give him a call. Did you finalize your search for a manager?

Chris, we're looking for a property manager for 4 plex as well.  We are starting our search now and interviewing a few this weekend.  Did you ever find a good person?

Edgar, usually the HOA properties keep the grounds well maintained and the property looks better in general. However, you have to run the numbers and see if it is worth it in terms of attracting more rent. I am closing on a 4-plex in Mesa this month that doesn't have HOA. BTW, did you ever pull the trigger? I'm looking for a good property manager in Mesa.