All Forum Posts by: Dawn Vacek

 I want to work with someone who's proforma is so tight that it's within $1690. a year let alone $169.    I think there are right answers everywhere here and there is more to this deal than we know.  Ask questions, get all the facts before coming to a conclusion.  

Well, if you live in Philly and you buy in Florida how does that cash flow look when you have to fly down for 3 weekends in a row to straiten out a mess?  Some markets are hard to break in to and there may be reasons to stay close even though it is not looking like the best opportunity to others.  To me, trying to own a property far away for a new investor is an invitation for disaster.  I would rather help them with getting the numbers clear and let them learn locally.  I see a bit in the original post that makes me think there are a lot of issues/questions still to be answered.  Due diligence mitigates risk.  

MAYBE    I seem to be the only one who isn't ready to just say NO.  I want to know more about the deal.  What are the comps in the area?  This should not be a top price with it needing all this renovation.  You are going to live there.  To me that has a significant impact on the deal and it also effects the math.  If the math doesn't work for you, it won't work for anyone-put your numbers in a nice organized order and show the owner why it doesn't work.  20% down is not at all the standard for under 4 units and you shouldn't cut any slack in the price for that.  Some of your expenses look a bit off to me.  Shop the insurance a bit.  For an owner occupied property the insurance seems high.  Call if you want to talk thru the deal...I'll see if I can help and if it is really negative...I'll be saying no too.

We have decided to rent to a tenant with less than stellar credit and his boss has agreed to guarantor the loan so that he won't have to pay an additional 3 mo security.  I've not done this before and wonder if you have any experience or hints for me.  Would it be adventageous to ad him as a tenant instead?  Any "red flags" to look out for?  

Hi Ronald, I appreciate your entheusiasm and your excitement to learn. Look for landlord associations and groups like REIA to put you in touch with people involved successfully in the business. It may take a bit to find a good mentor, many of the people doing this successfully are careful with their time and you may need to prove yourself a bit before they are willing to spend their time mentoring. That said, those who know a lot do enjoy sharing and helping someone new. Be diligent, search hard, try to get specific about what you are looking for. Good luck,

Look for "new Money"  people and jobs bringing money into the area.  I look for areas with increasing population, more than one stable employment base, look at the census demographics and see if who lives there fits with who you want to be landlord to...also, things like "best place to live, best place to retire, best ...." are a good start.  Good Luck, Always enjoy today,

If you buy at a tax sale the title is clean but for IRS and sometimes back taxes on the propertys.  I would always have a last owner search done before buying tax sale property.  Good luck-there are excellent values to be found.

It's not market but market knowledge that brings the 100% increases.  I just did it in 2 years (fromm $100 to $250,000) in a down market.  Pick your place, we are surrounded by opportunity.  There is no substitute for 1st hand knowledge and the ability to move fast with surity.  However, a rash investor can be a looser in the best of markets.  I am an international broker and can tell you places-Bulgaria or Romania over Russia for example, but the caveat remains the same.  Learn your market.

Good Morning-I dont flip but I can tell you there are times to skimp and times not to.  

     For wood floors, steam clean them and put on rejuvanate (about $16/qt at home depot) which lasts about 6 months or mop and glow (which lasts about a week) to make them clean and shiny, if you really can't afford to have them sanded.  If you have a little more money ask about having them screened.  It takes off the surface of dirt and you can just nicely put poly over them.  A couple hints:don't try to sand floors yourself...you can mess them up forever and most do.

    The tenants you get will be a direct reflection of how well you present the place.  I fix to the max and often do staging to help present a property in its best light.  The secret of the landlord business is having great tenants and the way to get them is having great property.

   Look at your budget...this is a business.  You need to think through the whole picture...before you start.  That you are caught reevaluating your strategy for this property tells me you didn't do enough homework before you bought.  Learn your lesson.  No matter how successful, none of us has unlimited resources so taking the time to plan carefully and w isely is critical to your success.  Good luck

didn't mean to step on any toes bill.