All Forum Posts by: Mackenzie Grate

With FHA loans you have to live in it, but they also inspect the property to make sure it is in a livable/ safe condition before. They usually have their own set of inspectors that come out and make a list of certain things that need to be repaired for closing. Based on what you shared, I'm not sure the property would be considered "livable" by their standards. Unless there is a section of the church that is already set up where perhaps the head of the church or nuns used to live...

Call your lender and ask before you invest too much time. I'm sure it would qualify for other types of loans though. So if it's a deal, keep going. Someone will lend on it if it's a great investment and the numbers work!

Good luck!

Look for a broker who is an investor themselves. If they are doing it, passionate about doing it, and successful, that is where you want to be. Even if the commission split is less, their knowledge and support will help you get further in the end and help you to build your own wealth quicker. There are intangible benefits to working with a great mentor that cannot be measured on a spreadsheet.

With that being said, shop around. I'm not sure that even with the bigger brokerages, they are all the same. Those large brokerages have many smaller teams under them. Set up many interviews and find the ones you connect with first, then weigh out the pros and cons of each. 

Plus, remember, like everything in life... your decision isn't final. Make the most educated choice you can right now and then just get going. If you have to switch brokerages down the line, you can totally do it. You are not locked into one forever.

Good luck with your search! I know you will end up somewhere fantastic!

I think this is a great idea and totally doable. Maybe consider start familiarizing yourself with your target neighborhoods and do some driving for dollars. You never know, you may be able to find a property off market while you are continuing to save and build your credit history.

The other thing I would do is start talking to your friends about what you are planning to do and see if any of them would be interested in renting. Start to generate those leads now so that when you do find the property and secure it, you have a list of potential vetted tenants now ready to go.

Lastly, I agree, make sure you learn the local landlord laws. Even if you are renting to friends, everything should be in writing and done according to the local law.

It's not a matter if you will be able to do this, it is a matter of win. Keep working hard, keep saving, keep educating yourself and you will get there no matter what.

I'm rooting for you! Good luck!

This is a tough situation. I agree with @Jake Wiley. Definitely consult a lawyer in your area and get their advice. You don't want to unknowingly inherit a new tenant. 

I would also have an honest conversation with your tenant about the risks you are are incurring doing that. Honestly they might not even think about the legal ramifications for you. They may just see it as, as long as you get your money, what else does it matter to you? Maybe they already have someone in mind... I'd just speak to them to learn more about what they had envisioned and see if you can work something out. All this is to say, only do this if you think they are a great tenant and worth the effort (which it seems like you do).

No matter what, get whatever agreement you come to in writing and if it is legal in your area, definitely get an additional security deposit or try to get that rent prepaid.

Good luck! :)

It probably does need to be snaked again. You can youtube it and DIY or hire someone. I'd also give the some drain-o. This is a very insignificant cost. Going the extra mile to address it will help keep them happy. It's totally worth it in my opinion.

If it ends up needing more attention from the plumber and say the plumber finds something stuck in the pipe, that is a different issue and would warrant the tenant possibly being financially responsible. But for now snake it again and see if that works. As an owner you don't want plumbing issues going unattended for long periods of time anyways....

Good luck!

As long as the siding is in good condition, I'd just paint it. I think new vinyl siding will increase the value, but not by as much as it will cost you. Make sure you choose the right color though. Certain colors now are selling homes for higher values, thus making homes that color seem more expensive. Sounds silly, but it's a real thing. lol. In my area its black and navy houses that are going fast. Just my two cents though....

Good Luck! I'm cheering you on!

Definitely check the laws, but if the mother is living there and is not on the lease you may have legal grounds to evict them. I would avoid that if you can but definitely ask them in a polite way to leave. I would say something along the lines of "I understand that this home may not be a fit for you, so rather than you staying and fulfilling the lease and being unhappy, I'm happy to terminate the lease early so you can find another home that is a better fit for you." 

Additionally, look into your local squatter laws. In some places, if mom is there too long, she then gains legal tenancy... 

Long story short if they are unhappy, not only with they be difficult to deal with and live near, but they probably won't take care of your property as well as you would like. Plus, when they do bring legitimate concerns, you may not respond as quickly or take it as seriously because there have been so many illegitimate concerns. 

I would give them an out to relocate and re-rent it out to someone else who will enjoy the place more and be less challenging to manage.

Good luck. Don't be afraid to have it vacant for a month or two if need be. It will save you more money in the end (coming from someone who learned this the hard way). :)

Consider calling a local lawyer who specializes in eviction as well so that you make sure you thoroughly understand the process and all the steps your property manager should be taking before you follow up with the property manager. 

I would then use that list of steps as a template for your regular check-ins and to follow up with your property manager. Make sure they are providing proof of each step they have taken. For example if something needs to be sent by certified mail, make sure you get a copy of the receipt of that. If a notice needs to be placed on the door, make sure they take a picture of it with a time stamp. You are going to have to manage your property manager to get it done. It sucks but squeaky wheel gets the grease.

If they then are able to successfully get them out, and step up as a property manager, I would keep them. (Maybe they are new and learning as they go to?) If not, I would definitely begin the process for researching and vetting for a new property manager.

Hope this helps a little bit. I wish you lots of luck. Evictions are never easy. :(

Unfortunately you are not the first person I have heard about being in this situation from Allstate. I am sorry you are going through this. I would recommend finding an insurance broker who is not tied to one specific company, and having them help shop for insurance plans for you. If you are buying many properties, especially in that condition, it helps to have someone on your team that is staying on top of what the best offers and rates are as you go. I meet with my insurance broker regularly to review all my existing policies and see if they still make sense and to add on new ones. Often times we use a variety of different companies to cover different properties. I used to think if I went with one company I would get a better rate and coverage on all my investments because of brand loyalty. I think that is a thing of the past now. So find someone who is an expert in your state, who does the shopping around for you, and work with them. If Allstate isn't working out for you, don't be afraid to jump ship. There are plenty of other insurers out there who will be willing to earn your business. :)

Good luck! You got this!

I personally would not take on that risk unless it was an absolute incredible deal that you just couldn't pass up. HOA's rules change, leadership changes, and while they may turn a blind eye right now, that might not always be the case. And those rules, especially if enforced, could limit your buyer pool more in the future. Additionally, it's just an extra worry that will be looming over you. When you have an investment property, there is enough to worry about as is. Having this constant stressor of getting caught could be more burdensome than you even realize right now. Totally up to you, but for me, it would be a no unless the numbers were out of this world...