All Forum Posts by: Joe G.

Hello BP,
I would like some advice on a tenant who wants to purchase my home.

I was recently contacted by an RE agent who works for the property management I use to manage by home in Georgia. The agent left a message stating the tenant is interested in purchasing the home and to contact the agent to discuss further.

Background: The home has positive cash flow even with the property manager. Current tenant has been in the home for just over a year and is currently on month to month lease.

I am not interested in selling the home as it is in a good rental area, I have a quality property manager, and the unit has had a low turn-over or at least a very quick turn-over each time a tenant departs.

My hesitation: If I tell the agent I am not interested they may move out/not respect the home as much.

I would appreciate any advice on how to proceed with the above information. Thank you.

To generate discussion and provide some insight for us ‘newbies’ would the experienced members of BP please post the following:

Years investing in RE: XX
Properties owned (currently held or already sold) solely in own name:
Properties held jointly with own name/other’s own name:
Properties owed via LLC/business (% of business owned by you):
Some other method of owning property (please explain):

These numbers will help us junior investors understand how the experienced investor developed their investment strategy. Thank you and looking forward to the replies.

Kelly G., I use PMs since I have properties in three different states. I always screen my PMs with face to face or telephonic interviews.
How ‘needy’ is the current tenant? How much longer do they have on the current lease? How much do you pay your current PM? Did you sign a contract with the PM?

Pending the answers, I would discuss your issues with the current PM first. Relationships are really expectation management. If their actions still do not conform to your expectations peruse other options. Good luck and please keep the forum posted with how you proceed.

Karin DiMauro, good question. As active duty military, I have purchased homes with my VA Loan. The purchases have happened on a tight timeline and when contracts have fallen out for a variety of reasons I stayed in hotels longer. I was always stressed over the appraisal b/c VA will not back a loan for more than what the home is worth. This will make a contract fall out just like the buyer not having money for closing costs the seller will not pay.

From my limited experience I would offer/counter-offer a flat amount of closing costs. This way the buyer with the VA loan knows what they are getting into and if they can afford. Good luck.

Kevin Polite has the HOA fined you for the exterior paint? I have a friend that has a home within a HOA. The home is about six years old and they recently received a letter about some decorative siding needing to be re-stained or they will be fined. I don't have that issue, however I do believe in preventative maintenance. I have a home in GA that I just contracted to be painted; garage door, trim, limited siding and exterior molding. Garage and some trim were painted eight years ago, but the siding was never re-painted in the last 15 years.
Will painting add to a curb appeal for the home? Will it help to prevent water damage? Will the cost help your tax bottom line? If all the homes within the HOA area are getting it done…you might want to ‘keep up with the Johnsons’ since they are the HOA board members and also the people who will complain about a rental home in a heartbeat.

Dustin O.
Where can I found more information about Tier II VA Loan benefits? You state in this listing that you can only use it in certain states. I am very interested in this option of using the VA Loan.

take care,

Kimberlee Lorenz
How did your endeavor work out? Are you still in SA, TX? Did you use USAA? FHA VA?
Interested in hearing more of your story.

Take care,

Paul H.
How have your purchases gone? Any reply I would give I am sure is to late for action on your part. I am curious how everything went for you.
Take care,

@Michael Barger
Have you pursued the multiple loans via VA or FHA? I would be very interested in hearing more about having more than one VA Loan.

take care,

@Slavik Lund, Jason Minnich,
Gentlemen,
Slavik, I like your idea of how you purchased a 4-plex with a VA Loan. I never knew this was possible until i started reading more on BP. I want to look into this in the future as I continue with the military moves. My angle on your questions:
I always had to occupy the home as a primary resident with a VA Loan. After I have departed the home I was able to refi out of the VA Loan in order to re-establish the VA loan for future use. I have never transferred a home to an LLC, with loan or just in title.

Why do you want to transfer into LLC?

I think all three of us are in the similar situations, should we transfer rental homes into an LLC? I would like to ask you why do you want to; Liability? Tax advantages?

I have three total rental homes all of which are in my personal name in title and loan. Do either of you understand how to 'quick-claim deed' transfer title into an LLC?

Take care,