All Forum Posts by: Jorge Almonte

@Minna Reid

Thank you. I considered this but my gut felt something. It started with her telling me she wasn’t going to move until she got an eviction notice. She ultimately accepted my cash for keys offer but her playing hard ball even about that gave me insight to what she might be like as a tenant. Rather take my chances with new applicants.

@Kai Kopsch

Thank you. I ended up going cash for keys. She accepted hopefully this will prove a safe route. I chose this in the end to rehab and force equity to also be able to ask for market rent.

I just purchased an occupied foreclosure (I thought it was vacant). When I met the current occupant it was the previous homeowner who was kind enough to show me around so I could examine the property and explained her original intent was to wait for eviction.

I offered her cash for keys and she asked if staying in the property was an option shes willing to pay market rent. She explained the foreclosure came about after a divorce but as she’s finally been awarded child support she can afford the rent.

Reluctant to offer this option I insisted cash for keys is the best option. Now I’m wondering if I missed an opportunity to simply have a ready tenant. Who has done well in keeping up the property.

The property was to be BRRR'ed and needs little work after examination.

So the question is do I offer the occupant an application for tenancy and assuming she meets the standard let her engage in a lease agreement? If so, do I avoid rehabbing the property?

ARV: 230,000

Purchase: 145,000

Rehab: 20,000 (has not been completed)

Balance owed: 128,000

@Precious Stepney

While I don't know the numbers for your area. Before selling I would do some serious homework. Having grown up in NYC and knowing friends in the area that still own brownstones they tend to fetch far more. As Brooklyn is the go to for those who can't afford to live Manhattan and the growth of businesses in Brooklyn it's on the rise. If someone is willing to pay 1.2 and you only owe 600k I would look at if it makes sense to refi rehab and either flip or hold.

The answer you seek depends largely on what your end goal is but please research your market. I had a friend sell hers for 600k and later it fetched above 2mil.

@Devin Arrigo I'm currently reading House hacking by Ben Leybovich states some great advice.