All Forum Posts by: Katherine S.

We were under contract last year for a parcel on a private road.  Our lender required that the property owners have a private road maintenance agreement on file with the county, which it did not have.  Our deal fell through for other reasons, but I was concerned about this requirement, as I think it would have been difficult to get the residents to agree to it for a stranger.

It seems to me that it would be a sensible thing to include in your PA (we found out about this requirement after signing), in case you need an exit strategy.  If the seller won't go for it, you know you may already have a problem. 

Lucky me, I'm in the 1%.

I was just wondering about this very issue last evening as I was copying endless receipts in preparation for my audit next week...can I write off the cost of the paper and toner?

What terms and language should we put into the PA? 

We made an offer on a pocket listing SFH. Had the inspection last Friday, and discovered that the sellers are living in squalor. The house itself is solid, and needs upgrades to the kitchen and two bathrooms, which we expected. We decided to pay cash instead of financing the purchase, and do a cash out refinance after the renovations and the property is stabilized.

In changing the PA to a cash sale ,  the language regarding possession was changed from "at closing"  to 10 days after closing ,  with zero $daily rental and nothing held back to assure that the premises is broom clean. 

This is the first time we've worked with this agent,  and it has not been easy.  He's not been particularly responsive to our concerns.   However,  we feel we need to make sure that the sellers don't leave us with a pig sty to clean up.

How can we make sure that doesn't happen?

Looking for the same information, so I'm giving this a bump.

I used Cozy for the first time this past month.  It's my understanding that applicants can fill out a free profile that includes things like their work history and current income (all self-reported, not verified) that can be submitted to you at no charge.  Then if they meet your minimum requirements, you can ask them for the screening reports.

I would not run out to show our houses without at least the initial application.  It takes effort on my part to show the house, so I think it's entirely reasonable to expect a prospective tenant to put forth a little effort as well.  If they insist on seeing the house first, they can come to the open house, if it lasts on the market that long. 

On the first day, I had one inquiry who wouldn't fill out the application (I invited her to the open house), and received two full blown applications, neither of whom had seen the house.  The first applicant shouldn't have spent the money because she didn't meet the minimum requirements we outlined in the listing.  The second applicant is outstanding, and started moving in last Saturday.  We were able to make a decision about her that day.  We let the inquiry know that the open house was cancelled.

Now, this is very limited experience, but it has been positive, so we are going to use them when we next have a vacancy.  

@Lucas Hallenbeck

I used a 203k in 2009 to remodel our house for wheelchair access.  It was a royal PIA, but it was the right vehicle for us at the time, as we could not find renovation money elsewhere.  Our biggest problem was that Bank of America, or perhaps just the person handling our loan at BOA, either didn't know what she was doing, didn't care, or both.  It took forever to get through the process, she kept losing paperwork, failing to follow through and failing to respond.  Our sellers got very nervous that we couldn't close because it took so long, and it was difficult to convince them that it wasn't that we weren't qualified, it was just BOA.  If we had been relying on them to get the funds released to pay our contractors at the time, rather than being reimbursed later, it would have been a problem.  

I believe this is still restricted to personal residences.  If you're house hacking a quad, it would work, but not if it is strictly an investment (unless this restriction has changed since then.)  If you can find someone who handles a lot of these, and who can keep the process moving forward in a timely manner, your experience should be better.  You will need contracts from all your vendors in advance and need to keep very careful records to report back to them.

Oh, and don't forget you will have to pay PMI virtually forever (or until you refinance). It's expensive money.

@quinton slay 

As a social worker, understanding the principles and power of wealth building could potentially be one of the most important things your girlfriend could learn. Perhaps you could find a way to explain REI in terms that she already understands, that is , the positive impact it could have to lift people out of poverty .

Michael Swan's podcast might interest her,  given his background as a teacher.

Got it, thanks!

@Casey J Burkhead I forgot to ask...we're in the process of setting up an LLC. Should the additional interest be in our personal names or the LLC? I'm not sure it will be complete before lease signing.