All Forum Posts by: Mark Csongradi

 Very valuable advice here.

Hi all,

I have been researching the topic of pre-foreclosure property purchase, but I'm seeing very different, sometimes contradicting information out there. To clarify, I'm specifically referring to the period of time when the owner already missed their payment and received their notice from the bank but they haven't gone under foreclosure/auction. I am hoping you guys can help me out:

What are the main advantages and disadvantages of buying pre-foreclosure?
What are the caveats of the process that the buyer needs to pay very close attention to?
Is the buyer able to conduct any inspections, or do they have to buy as is?
Does it need to be a conventional purchase or can the deal be a sub to, or loan assumption?

Thank you so much in advance!

I agree with the gentlemen above. Every deal is different and while two properties might be at the same price point, one could be too expensive and the other could be a steal. Like the others said, it all comes down to the math and whether you can fund it, whether it generates enough cash flow you'd accept, whether it generates enough return on the invested capital. I am not a super experienced investor, but I have been (over)analyzing deals and I mostly looked at price in relation to the down payment I'd have to put down, and the monthly expense amount (mortgage + expenses) compared to the rent in the area. Don't get too caught up with the price, of course it is very important to look at but it is not the primary predetermining factor that makes a deal a good deal. 

Congratulations! I have three doors at this point, and planning to start a house hack first quarter of next year! Looking forward to following your example

I appreciate all of you taking the time and sharing your knowledge with me! I am in a situation where I will obtain this particular property at the beginning of the month and the existing lease will expire at the end of that month. Although I understand why 60 and 45 days of notice would be ideal, I would like to know what am I required to do by law? 

Hi everyone,

How far in advance do you have to give a rent increase notice in Missouri? My tenants' current year-to-year lease is about to expire and I will need to adjust the rent to current market rate. How far before the expiration of the lease do I have to notice them? Thank you all!!

 Theresa,

That's a great idea, I'll consider it when time comes. Regarding the first tenant, do I still need to give a notice even if their lease expires?

Hi everyone,

I purchased a property where the rents are insanely below fair market rate ( 40-50% lower). One lease is up in a month so I don't have an issue there, however, the other side's lease will be active for almost a year, it was recently renewed. I was wondering if there is a creative (and legal) way to increase the rent to a more reasonable rate. After researching it, someone recommended to offer the tenant to raise it to 75%-ish of the market rate and lock them in for another 6 months or a year after their initial lease would end. Do you all have other ideas how it can be done, that's appealing to the tenant as well? I would prefer to keep the tenants, but the current rent just doesn't make sense financially. 

 Appreciate it Jeff, it was very useful, makes sense now!

Chris, I'm new to landlording. Why would you recommend one not taking a year of rent upfront?

Thanks in advance!