All Forum Posts by: Joseph Bass

I'm talking with a motivated seller in chattanooga tn and there are some terms on the quitclaim deed he showed me that I've never seen before. It says its a quitclaim from mom to her son and grandson with "a lifetime residency clause that prevents the sell of the home and the use as collateral or business transaction" can anyone shed light on this? Am I dead in the water? Its great deal so maybe too good to be true? Thanks in advance!!

my first rental in Chattanooga

Bad

Constant maintenance issues

Capex (roof right around the corner/old ac unit)

Has yet to cash flow broke even maybe even gone negative since ownership

Good

2014=63k 2019=100-110k

New sports Stadium going up down the road with restaurants and lodging

Mortgage=512 with escrow

Rent= 895

The way I see it after fees and closing I could get 35k out of a sale

Refi scares me with it not even cash flowing now

10% pm

10% capex

8% maintenance

7% vacancies

=35% of 895

313.25 operating expenses plus 512 mortgage and escrow

825 = 70 month cash flow over time

70x12= $840 annual

840$annual vs 35000sale that’s 2.4% on my money.

Am I doing this right? Please help cause if it is I’m thinking I should sale what do y’all think?

@Geraldo Holter welcome brother!!! I’ve learned a ton of these forums. Let me know if there’s anything you might need help with.

@Dan Beaulieu I’ll give that a try! 

@Account Closed I have Preapproval from a hard money lender. It’s the arv appraisal that’s making me loose them.

@Heath M. I’ve been considering direct mail, door knocking, cold calls Etc. I’ve actually had the most luck just by telling everyone I know what I want to do. I’ll keep trying but it is starting to Wear me down.

So I’ve lost the Majority of my offers to cash buyers. I’ve saved quite a bit but not enough to Start cash bidding. I also have a 2\1 house here in Chattanooga tn. 895 a month rent, mortgage w/escrow is 510. According to my trusted and well decorated agent I could walk away from this house with 35k in hand. This also just happens to be very close if not perfect (depending on house) amount I need to start playing with the big boys on “cash offer”. So I guess what I’m asking is the loan I have now (at 3.5% Interest) be willing to loose that? What other options am I not thinking of. This is my only rental does it make since to sale so I can be a more competitive investor when I want to be a buy and hold guy? Isn’t that Counter intuitive? Or is it logical to loose a less Desirable 2/1 in exchange for a better bidding/offer Strength?

@Heath M.

@Nathan Recchia

Thank you guys for the welcome reply. I’m looking forward to the meet ups as well. Hope to see you two there

@Matthew Hook let’s work together I’ll pm you! Thank you for the welcome reply!!

@John Fortes glad to be here. Thanks for the welcome !!!

thank you everyone for your help. I’ve let this house go. More curiosity and trying to understand then anything. Good luck out there and god bless