All Forum Posts by: Ken Collins

Thanks for the replies.  I have been to the house 5-6 times since I have had it under contract and have never seen the son(tenant) or signs of occupancy.  And, there is nowhere to sit on a chair or lay down on a bed due to the dog using them as a toilet. The son is too busy drinking to start a litigation or do anything else, but I wanted to avoid a claim that I disposed or took something of value.

I think I will require the Father(seller) to provide me in writing that the house is unoccupied and that he understands the property left behind by his son has no value will be disposed of.

I am buying a house in Wisconsin to flip from Father whose son has lived in a house for 10 years with no written rental agreement and has never paid any rent but was supposed to.  The house is 2 feet deep with garbage including dog feces, dead mice, years of garbage, etc...  There is nothing that I would consider of value in the house, except a few hunting rifles, everything is garbage or ruined by the dog who was never let out of the house and did his business in every room on everything. The Son (tenant) can only be contacted occasionally when the father happens to call the right bar and he answers, otherwise, he never responds to any correspondence.  The father(seller) tells me that the son (tenant) has verbally told him he has moved out and is living with a friend.  When I buy the house the plan was to get a couple dumpsters and have it cleaned out starting the day I buy it. Do I need? should I get? something in writing from the father(seller) stating the house is vacant or the son (tenant) has moved out? do I have to hold on to anything of value in the house that is found for a period of time, like you would for a tenant who has left?

Looking forward to your opinions on this.

Thank you all!

I think I have my answer... only wait time is time for any deposits / transfers to complete and be registered in the account before it is usable.

BP Rocks!

Hi,

I recall hearing a statement that if you plan to use a Self-direct IRA for REI in the future, you should open one immediately, even if it is a small amount. The reason given was there is some time frame that must be met from opening the IRA account until you are allowed to begin using the funds for REI.

Is this true and what are the rules?

Thanks,

Ken

Thank you! I like Rentometer, Nice tool.  I like that it provided me with the details of Comps nearby. It looks like the rents I was told are a bit low for the area, which matches what I listed in my post to be the fair market rents from ObBoard.

About me: I am a new to Real Estate Investing, began learning 2 months ago, and have decided to jump in.  First and loudest message I have heard is that it was important to act and start making offers and that will accelerate Learning.  My third offer was accepted after some negotiation, and of course now I am scared I am going to buy this property and not get the cash flow I think it will do and lose my $30,000 I have saved for this.

The property: Foreclosure, purchase price is $74,000, 2014 taxes $3897, $1,750/mo historical rent (anecdotal from agent who did cash for keys at foreclosure)

I believe it needs $5-8,000 in preparation and repairs to be move-in ready 

Unit 1: 1 bed/bath, ready to rent, maybe 1 hour of cleaning needed, told it was getting $450/mo before foreclosure.

Unit 2: 3 Bed 1 Bath, Some "Honey do" type repairs needed and painting, should have no problem completing it myself in 1 week. told it was getting $750/mo before foreclosure

Unit 3: 2 Bed 1 bath, needs all new flooring, some mold cleanup in bath and would benefit dramatically from counter replacement in kitchen, told it was renting for $550/mo before foreclosure

The Market: 5% Pop growth, 7.8% vacancy

Room to grow rents from historical: here is the fair market for rentals:

One Bedroom $562

Two Bedroom $737

Three Bedroom $994

Am I doing a good deal in your opinion?