All Forum Posts by: Marty Gold

A propery in Lancaster county PA is listed for $184,999 and is being rented through June 2018.    This home was purchased as a rental in 2005 for $126,500.   

Other than finding comps (i cannot find 3 within a mile that have the same bed/bath components with similar square feet), what other factors are used to learn the fair price and thus make a fair offer?  Seeing as how the national home market isn't much higher today than it was in the summer of 2005, and that the last owner hasn't made any significant upgrades or improvements, I was shocked to see the 50% jump in price.    I'm new so maybe I'm not looking at this correctly, but isn't it odd to think the market is 50% higher today than a year before the peak of the bubble?

Would anyone use this info as a factor in making an offer or am i best to ignore it and only look for comps?

Any info on doing research to make a fair assessment and thus make a fair offer would be greatly appreciated 

thank you very much. 

You were extremely helpful!!

Thank you.  Other than shopping rates, do you suggest any other items I should shop for or price our at each bank - things that may not be fixed such as closing costs?

Thanks

 Thank you 

 Must these comps be rentals?

Thank you 

How can I know some numbers though?  Not all costs are fixed and thus, must I not take an educated guess or approximate some costs?

If you can direct me as to how I can get you more solid numbers, I will do that and edit my OP.  This is my first rental purchase and I'm not familiar with all the specific details yet. 

Thank you   

The PA law reads, "

"Escrow Funds Limited:

(a) No landlord may require a sum in excess of two months' rent to be deposited in escrow for the payment of damages to the leasehold premises and/or default in rent thereof during the first year of any lease.
(b) During the second and subsequent years of the lease or during any renewal of the original lease the amount required to be deposited may not exceed one month's rent."

Can anyone explain (b) to be please?  If someone rents using a 1 year lease and I charge a 2 month security deposit, is (b) saying I must return 1 month (half in this case) if that same person renews the lease for a second year?    Or is (b) saying on that renewal lease that I may charge an additional security deposit of 1 month's rent, above the 2 month's deposit which I already am holding?

Thank you 

 Thanks joe. 

Would you mind looking at my numbers above and offer your opinion on the math?

Thank you 

I am searching for my first rental and know it's important to save CapEx money each month for big problems that eventually arise.

But what do people do with this money?  Stock market is likely too risky and bonds aren't liquid enough.   Do you just leave it in a savings account earning next to nothing for years or maybe decades until one day you need a new roof? 

Thanks