All Forum Posts by: Account Closed

@Cheryl Butler I personally include rehab/repair cost in the calculation. My thinking is that without the rehab, the house isn't able to be rented so not adding it in would be making the percentage higher than what it really is.

Ok thank you so much for all of your help! I will make sure I do everything legally to Indiana standards but now I have a general idea of what needs to be done, I really appreciate it!

Also one last question, what are my options if they don't want to sign anything etc? (Don't know why they wouldn't but just want to be prepared). I just don't want the seller to continue receiving the rent checks and there is only 11 days until rent is due again.

@Everett Fujii thanks for the quick response! I really just need the lease to say who to send the rent to... The rest of the lease is fine for me. So do I need to draw up a whole new lease? Or can I just have them sign an addendum saying to send the rent to me?

Hey guys, I closed on a townhouse on Friday, and the RE agent was supposed to be my property manager to deal with the inherited tenants. Long story short that isn't working out. So, I am on my own with this for now. Also I am out of state for the next 3 months(property is in Indianapolis and I am in San Diego CA). I was given a copy of the current lease between seller and tenant, and I have the tenants phone number. Do I just call tenant and tell them that we need to sign a new contract? They are on a month to month lease that ends on the first. Or should I send a certified letter instead of calling? Thank you!

Zillow, craigslist and facebook groups

@Dave Foster and @Rich Baer thank you guys for the response! I really didn't feel comfortable with this setup (which is why I asked the question) and you both confirmed my fears. Thanks again!

I am looking at buying a deal through seller financing through a property management company. The only other seller financing deal I have done is on my primary residence, and we went to a closing at a title company. So I am slightly confused. This property management company said for me to look at the property and have an inspection done, then if I am interested they will send me a contract to review (and they suggested that I have a real estate attorney look at it). Then if everything looks good, to sign the contract, provide the down payment and I will be given possession of the property. They said the closing would be when the property is paid in full (10 years). I confirmed that it is not rent to own or lease, the seller is financing the whole amount minus down payment ($77,000 is the financed amount). I would be responsible for taxes and insurance. So my question is, would you guys go through with something like this? The property needs work so it wouldn't be able to be financed by a bank. Would a signed contract keep the seller from selling the house from under me or getting a mortgage on it? My fear is that I buy this and later on something like that occurs. How could I protect myself from that? Thank you in advance for any help!

I'll be honest, I don't know how cold it gets in your area, but in Indiana in December to February the average temp at night can be as low as 5- 7 degrees. My personal house (2 story 1800 sqft SFH) had gas heat, my bill in those months was around $300 and $85 for electric. My gas furnace went out so to save money I bought an electric furnace. My first month my electric bill was $750. The electric furnace has to run probably 2-3 times as often as the gas furnace did. I learned my lesson and realized that electric furnaces in very cold climates aren't a good mix...

Awesome guys thank you for all the great advice!   I will talk to the seller's agent tomorrow and ask for a copy of the lease and go from there!