All Forum Posts by: Joseph Walsh

If you have equity, and the "unfinished" items wouldn't prevent sale (roof, furnance, etc.) You can likely get a loan/heloc. However the property appraisal will suffer, and you'll still need the total loan to value numbers to line up. However, assuming the 235k number is what it appraises for as part of the heloc, the LTV number puts you at a total of 176k borrowed for 75% or 188k for 80%. If you financed the whole 171k, that only leaves you 5-17k on a heloc, plus whatever down payment you put in. You might want to try the original lender and see if they can use the recent appraisal....might "streamline" the approval. It can't hurt to ask.

Note, I am NOT a banker.  Just have financed/heloc'd a few times over the years.

So, does the bill also protect private sector workers who get laid off?  What about those on unemployment.  When did they become a protected class?  That said, I like to try and work with my tenants, however, this bill seems illegal, and quite frankly, grand-standing.  The flip side of the argument can be made, tenants that can't cover missing a paycheck or two don't have sufficient emergency funds. (or their car breaks, or they have a hospital stay....)  Sorry, I hate the mentality that all landlords are well-to do fat cats with nothing but cash fleeced from "the working people".  We are hard working people also.  If they want to solve the issue, then solve the issue, resolve the shutdown, instead of shifting ownership of their problem.

What could you turn that ~40k into 3 years from now?  If you could turn that into more than 40K +  your projected unforced appreciation on the property, you might consider it.  Of course, you also have to factor in your cost and return of forced appreciation against the margin, since you now have a vehicle for secondary investment that may be superior to the other option(s).  personally, I'd keep it. now ~100k, I'd take the money and run.

Sadly, I can't make it now.  Next time....Happy holidays

As a landlord, I wouldn't allow that breed either.  As a dog owner, the Cane Corso is as docile as most mastiffs (generally a docile animal), and I would own one.  the issue is they are large, and highly protective, and similar to Rottweilers, need more exercise than people think.  When powerful dogs react in a protectionary way, it can be very dangerous, even if the intent isn't .  I really hate people that get "dangerous" breeds and don't know anything about them or get proper training on how to handle them.  anyway,  All that said, everyone here is right, file a report on the animal, go after the tenant or their insurance for the damages (this also gives you some leverage if it drags out), and send the eviction notice letter.  the action can be stopped if they get their crap in order and provide you a plan for removal of the animal, or lease termination, if not, get the process started formally.

I hoping to attend, so I added myself as an attendee.  Schedule is tight, so I might not make it, but I hope to meet you all.

Jay

Send him to the couch until he stops acting like a child. Tell him, the house is vacant, costing us money. It needs to be turned into a rental, since you will not sell the family house. The heloc can pay it, or he can sell his truck (boat, whatever), and give you cash for the required renovations. Seriously, this is not like my scenario what I was trying to convince my wife on getting into REI, she had to come around, and she finally did once she had a level of understanding she needed. You came in with this house, I assume communicated the desire to keep it and intent to renovate/lease. Now he's submarning it, because he can. On a more serious note, does he expect you to support any of his endeavors going forward after this?

Another option is to pursue hard money, and show him how much more it's going to cost "him" to do it that way.  

Update:

They accepted an offer before ours came in.  Bummer.  Ahh well, I wouldn't of been putting it together any faster, so, I can't say I was beat by heel dragging.  I think the offer came from a pre-listing viewer that has been mulling it a while.  I told the realtor to let me know if it falls through.  thanks all.  It has been enlightening, and now this particular rental market is on my radar, and I know what I am looking for.

Jay

@Alexander Flores: 

Thanks, this was the kind of perspective i needed.  Is it "ok" to just look at cash low.  And your point reminded me, I'll be holding this one longer than a brrrr, more like 10 years since it has new mechanicals/roof. 

Hi all.  Ok, to clarify.  Sure, the properties will appreciate, but this particular region the appreciation is low, and so I am not considering it as part of my decision process.  I am strictly looking at cash flow, plus pay down relative to exit target.  And why I asked for advice, since normally potential appreciation does influence my analysis of a property if it's not a home run.  I think I have gotten some great answers, and I'll post back with all the numbers as I work through the deal (I tend to run it a bunch of times/ways, and really over-analyze), but the highlights are:

total out of pocket 14000 (dp+reno+10% reno contingency)  it really just needs paint and a lot of cleaning, but planning for at least one "gotcha"

monthly cash flow - $595  including 12% capex (thanks @Will Gaston), 1 month vacancy, all expenses, debt pay down, actual taxes, actual insurance quote, and 10% management (even though it will be self managed)

Will keep you posted.