All Forum Posts by: Account Closed

I totally agree it does NOT seem that houses in the 500K range are good rentals... but why do I still see plenty of houses... even more exesnive than in the 500K range being rented successfully?

... and these properties are not near a beach or any special area and are not seasonal either... yet they are rented.

Some people just prefer to rent? I think it is nuts and doesn't make sense to me... because if I can afford to pay rent that HIGH... I would NOT be renting.. I would buy a house!

I am nervous about my plans to buy 500K 3BR/2BA house... because I am worried I will have difficulties renting it out in the future. really need help from a realtor does not only deals with residential... but also deals with INVESTMENT (rental) properties? Would such a realtor know more?

Because my RedFin realtor hasn't been able to help me or advise me with any of this stuff I am doing all of it by myself... I have NO idea if a rental property in the area I want to get it in is BAD idea or if it is OK.. or what rent I could possibly get for it... IF lets pretend I was going to rent out the property out TODAY instead of in the future. I am NOT going to rent it out today... but I would like to at least see what rent I could have gotten TODAY for it... because if it doesn't work TODAY... then it makes me uncomfortable to to think it would in the future. A LOT changes as time goes on o course and nobody can predict the future... but hope you understand what I am trying to say. If it does not work today... then it more likely won't in the future either. If id d BAD today... I ain't messing with it.

It's bad enough I am going to rent out property in the 500K range (in the future of course, not now)... but I don't need another issue on TOP of that.

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Thanks so much again for all the replies and input!

This seller already took this property off the market (she put it up for rent now... not for sale anymore... UNLESS I pay 495k for it). This seller has never been super motivated to sell. I say this because she did this exact same thing to someone else in 2019. Someone gave her full asking price offer... but then seller changed her mind and decided to not sell and put it out for rent instead.

She put it out for rent at 2700 recently... and then lowered it to 2450... it's still not rented... I do not know what she is thinking!! Because it is NOT in a rentable condition AT ALL. Trust me... the place needs work inside... even to make it rentable... I will be shocked if someone is willing to pay rent to live in it in current condition! People really put places up for rent in this condition? Why? Doesn't it attract bad tenants? I could NEVER live in place that is in this condition without renovating it. I would have had a lot of fun renovating it :( LOVE renovations... I did a full gut job on my condo I VERY regrettably sold (will not make that mistake again!). This townhouse does NOT need full gut job though.

There is ZERO chance that I would have lived in this townhouse for 30 years. I plan to move to Colorado as I cannot take the HOT weather in Arizona and LOVE LOVE LOVE snow and experiencing four seasons. I am a nutcase... but I love snow. I will be in Arizona for many years though... at least 10+.... but DEFINITELY not 30... unless I manage to move to Flagstaff.

I still keeping thinking about this townhouse (it really was PERFECT for me... am VERY sad I cannot get it!!)... I would but but NOT at 30K OVER asking price... and it is very difficult for me to NOT focus on the place I acquire as a future rental as that is really IMPORTANT to me.... a LOT more so than anything else..... well EXCEPT for the location... I want to stay in a very specific area in AZ since it has lot of mountains/hills and for other reasons.

I am now focused on finding a 3BR/2BA SFH rather than 2BR townhouse because it just seems it will be a lot more beneficial for me in 20 or 30 years... it will have appreciated more than a townhouse and get a bit more cash flow in the interim too than the 2BR townhouse.

If money was not a issue... I would have gotten this townhouse in a HEARTBEAT!!! :(

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Quote from @Chris John:

@Account Closed

You made the correct call. I would've walked when she had you negotiating against yourself. Gain the ability to look forward and never back (unless it's in fondness). It'll make your life a lot easier. There's something better out there and you dodged a bullet.

Best wishes

Thanks so much!! Seller was only willing to sell property at 30K OVER her listed asking price (so she rejected my full asking price offer).
I was also the ONLY offer on this property. It was listed at 490K 3 months ago... then entire month later she lowered it to 471K then entire month later she lowered asking price to 465K (that's when I made offer for 465K). She rejected full asking price offer and wanted 30K more.

I know that property was extremely overpriced at 495K, especially in current condition (it did need lots of work... mostly cosmetic updates... at least 20k worth). Highly doubt that I will find anything with good views again but I'm OK with that now. I can get my views at a later time.... it will be many years from now unfortunately but at least I will have not thrown a TON of money out the window on a severely overpriced property that isn't even my dream home.

IF I had bought this townhouse at 30K OVER asking price... I don't think I would dare admit this to anyone... especially since NO other offers took place as I was not outbidding anyone but myself... it made me feel stupid. So I am glad that I am NOT doing that anymore!

I told my 80 year old aunt about this situation... in Hungarian she told me to tell the seller to go you know what herself.... followed by NEXT!!! LOL... haha. She said "this no way to do business!!".

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Quote from @John Underwood:

Quote from @Account Closed:

Quote from @Justin Pearson:

@Juliet Palfi Have you considered using seller financing of your hypothetical $500k house as an exit strategy once you decide to move on? If you are willing to live in a less expensive home then the cash flow from that long term note should be enough to pay down the mortgage on your next property and maybe some left over on top. Say you seller finance the 500k note and gets 3k a month in payments. Use that payment to pay down the mortgage on 2 cash flowing rentals and/or live in one. In this case you're using your property as the bank.

Thanks for the advice! It appears that "seller financing" is the exact same thing as being the PML (private mortgage lender) on my property I sold? Isn't it difficult to find buyers who even want seller financing? How would I even go about advertising that I am offering "seller financing" for a property? I can imagine many people out there do not even know what that is? Sorry for so many questions... but why would someone want me to be the "bank" when they can easily get a unconventional loan if they can't get conventional?

I just got a unconventional loan and it was super easy (has 7% interest until I can hopefully refi to get lower %).... and if I am going to to be the PML I would NOT charge less interest rate than other unconventional lenders... plus I have NO idea how to get the paperwork done etc in order to be a PML....

I know someone who had LOTS of rentals... then became the PML. It was less headache because then you don't have to worry about tenant headaches (if they don't pay you take your house back)... but what happens to all the tax advantages that rental properties have if you are the PML? They are gone! Not good!!!

If you offered owner financing you would attract plenty of buyers. Many people can't qualify for a bank loan for a multitude of reasons but would still pay back your loan on time. Just get a decent downpayment, have an attorney do the the paperwork for a subject to mortgage.

Now may be a better time to be acquiring distresses LTR properties at bargain priced that cash flow better. Get em cheap and fix them up. I'm still finding motivated sellers or distressed properties that I can buy for under 30k. Get a handful of these and you'll be in early retirement with much less work than a STR. I have both and my LTRs pay all my bills plus much more. They have really appreciated and I have instant equity when I buy one of these on the cheap.

Thanks for info! Stupid question... how would I go about being the PML (seller financing). I have no idea where to even start.. what paperwork is needed etc etc... being the PML seems like it would be complicated thing and I'm sure I would not even be able to answer any questions I am asked about it lol... it seems if I am the PML I cannot get any "hand holding" in the beginning until I am more experienced and better know what I am doing? Because right now I do not know my *** from a hole in the ground.

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Crap... I don't know if I made right decision or not!! :) Because I will more likely have to live in this property for... I don't know... at least 4 years.. possibly even 7 or 8 or longer I have no idea. I cannot move until my business profits X amount. That is going to take looong time.

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Quote from @James Hamling:

Quote from @Account Closed:

Quote from @James Hamling:

How about HOA vs no HOA, I'd say that's probably the WAY bigger factor on stand-alone vs townhome!

@Account Closed there is so much missing in this, just the way things are presented, I don't know where to start or how to reply in a way that doesn't involve considerable forehead and eye rubbing. I think you'd find much value in connecting with a local Realtor, ask him buy him lunch to discuss a few things on properties (because your gonna need them in a captive setting, lol) and then just get it all out, be ready for eye rolls or frustration, I am just being brutally honest here, but you will learn. Then rinse & repeat this process until have fair comprehension of these things in that market.

For myself, for a SFR, I will take the HOA property every time. It's my style and experience that it's just a best setting for getting things too "cash-cow" status. This is assuming it's one I want to keep, if have a 3-5-7 plan then I will go where equity will best accrue.

Thanks for your reply... you mentioned "For myself, for a SFR, I will take the HOA property every time". Are you referring to SFH as an investment rental or your primary residence? I personally want to avoid HOA at all costs!

SFR = Single Family Rental. As an investment property love Love LOVE HOA Townhomes!

In single family rentals do you know what the #1 pain in the azz is, the exterior care of the property. Do you know how often I get a prospective tenant who's excited or pumped about mowing the lawn or doing snow remove? Never.

With HOA, I get the entire exterior covered, all the services, and it's a marketable positive I can charge for, so HOA fee is a net 0 or net profit for myself actually. AND in HOA's, I most often get a free caretaker also, because most every HOA has "that person" right, the neighborhood "Nancy" who's on everything. Do you how much her eyes light up when I ask her to please help keep an eye on my place, lol, It's like I just confirmed her whole reason for existing, lol.

Not to mention, know what sells awesome in a down economy? Townhomes. Know what sells awesome in a red-hot economy? Townhomes. Know what rents awesome? Yeah buddy, TOWNHOMES!

So yeah, 0 thought or work for anything exterior, free caretakers, great liquidity in all market directions, great tenant desirability, yeah, HOA Townhomes all the way!

Thanks so much for your reply! I live in AZ so there is NO lawn to mow and no snow to shovel. So I don't see what else would need to be monitored so often on the outside?

I am very worried I am making wrong decision buying 2BR townhouse rather than a 3BR SFH. It also appears a 3BR SFH will appreciate MORE than a 2BR townhouse!?

I am not too worried about the exterior of property... I lived in 3BR 2B house for 20 yeas in FL... and the exterior was handled with lawn service and I really didn't have any other serious issues as I lived in SFH most my life in more than one property which went through numerus hurricanes.

I am more worried about the appreciation factor between the two property types :(

I am a LOT more worried about the INSIDE of the property.. tenants destroying things.. happened more than once to my mom's rentals it was horrific!!!

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Scottsdale, Arizona

Thanks so much for ALL the replies!

After MUCH turmoil and tremendous thought I have FINALLY made a decision!!

The reality is that I am NOT looking for my dream home so I have decided to NOT get this 2BR townhouse even thought I would have LOVED living in it!! :(

Plus this seller was only willing to sell it for 495K and it needs a lot of work! The entire flooring needs to be re-done and then countertops need to be replaced/updated etc etc. Her full asking price was 465K but then she changed her mind and was only willing to sell for 495K. VERY overpriced!!! I could get a beautifully renovated 3BR 2BA house with quartz countertops, modern bathrooms and awesome flooring for 450K in Mesa!

I am not willing to compromise the more expensive area I want to live in because there are lots of hills/mountains there etc... lived in FLAT Florida for many years... I really want to be near hills/mountains plus I feel real state in the area I want to live is a great place to invest... not necessarily for rentals but I can only hope for appreciation.

Since I can't have this townhouse I LOVED then I at least I want my mountains!! :(

In about 5 or 6 months I will resume house hunting for a 3BR/2BA HOUSE. I do not feel comfortable acquiring condo or town house.. I feel a 3BR house vs a 2BR town house will be a move.

I rather put my money into a 3BR house...NOT a 2BR townhouse.... LOL I wanted this 2BR townhouse so badly that I put a picture of it onto my VISION board. I will now remove it asap and move on. I HOPE this was the right decision!!! :(

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Quote from @Chris John:

@Account Closed

My favorite thing about my house is the view. It's not the greatest view in the world, but I enjoy looking at it. The joy and peace it brings me is difficult to quantify monetarily. 10 out of 10 I'd buy it again. However, where I live, there aren't many options with views, so I felt like it was worth paying for because I didn't know when the next opportunity might arise. I'm not sure if that's the case where you are...

Good luck with your decision!

Thanks! Yes! That is exactly my situation except there are other places with views but not in my budget.. those houses are 700+K range. I am also home 99% of the time so I am home a LOT... more than you can imagine. This is why I also loved this townhouse because it gives a different "feel" to being inside the home.

This property is also selling very overpriced because seller countered asking price offer.

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When I search for other rentals in the area I want to buy this townhouse in there are literally ONLY 18 properties available for rent and none are townhouses... the are houses or apartments or condos And another property I almost bought ONLY has 6 rental properties! Is this a BAD SIGN or just has to do with size of population of area? I tried to find other townhouses in order to compare rent prices but could not find any unless I search for avail townhouse for rent in other cities.

Phoenix has 1,167 rental properties (of course phoenix is MUCH bigger) and the area this townhouse is in has only a population of about 22,000 people. And another property I almost bought has has population of LESS than 5,000 people and that entire area has 5 rental properties available for rent.

I do understand certain areas have more home ownership than rentals... especially since these areas are more out in the suburbs but still SUPER close to the city.

Also I see on zillow several rentals have been listed for over 400 days!? Why do they even other to list it for that long... or perhaps they forgot to remove the listing once rented out?

Thank for the advice!!

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Quote from @Nathan Gesner:

We are in a peak market. If you can wait 6-12 months, there's a good chance prices will start to come down and houses will sit on the market longer. That may be a better time to find what you're really looking for instead of making an impulse purchase and possibly regretting it.

Thanks for your reply! I can wait 6 months but not 12... that is too long. I really do need to move. But I am worried the opposite might happen and that the more time goes on prices will continue to rise... not drop if I wait 6 months!? :(

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All Forum Posts by: Account Closed

Account Closed has started 9 posts and replied 36 times.

Post: How on EARTH to get good ROI with expensive properties?

Post: Am I CRAZY to buy 2br townhouse when I could buy a 3br house?

Post: Am I CRAZY to buy 2br townhouse when I could buy a 3br house?

Post: How on EARTH to get good ROI with expensive properties?

Post: Am I CRAZY to buy 2br townhouse when I could buy a 3br house?

Post: Comparing 3br house rent profit to 2 br townhouse................

Post: Am I CRAZY to buy 2br townhouse when I could buy a 3br house?

Post: Am I CRAZY to buy 2br townhouse when I could buy a 3br house?

Post: Large apartment complexes VS small landlords.....

Post: Am I CRAZY to buy 2br townhouse when I could buy a 3br house?