All Forum Posts by: Account Closed

Originally posted by @Mike Provencher:

I have a prospective tenant who says they are building a home and would like to pay me 6 months rent up front.

I have heard (through BP podcasts) that I should be cautious about doing so.  

If he is building a home, I could see how he would want to only go for 6 months...but, that means I have turning costs again in 6 months, so provided his credit and references check out...I may do it.  But I would think he would have to pay a premium for that privilege...was thinking 2 months extra rent.  

Any ideas, thoughts, caveats, straight up warnings? 

Thanks, 
Mike

You can check with his builder easily enough to see when they project completion and that in fact it is as portrayed. I'd give the prospective tenant a choice, 1. one month longer than projected completion and they must vacate on that date because you will be finding a new tenant 30 days before they leave or 2. two month's extra and if there are delays for any reason you will allow them to remain until the house has a certificate of occupancy.

Originally posted by @Joshuah Mundy:

@Mike S.

Every house I've looked at isn't affected by the water. Plus water purifiers are included in my rehab price. It's nothing like media portrays it.

As you wish.

Originally posted by @Account Closed:

I’m planning on being in Scottsdale next week and was going to spend half a day looking around at neighborhoods and houses for sale to get a feel for what’s out there and generally get the lay of the land. I’ve got family in the area and have visited many dozens of times over the years, but I’ve never really delved deeply into looking at real estate. I’m just getting started but Scottsdale (and the whole “valley” area) are at the top of my list in terms of places to possibly buy an investment property. If any of you fine folks has recommendations on areas to look at while I’m around, I’d appreciate your thoughts. Thanks!

Depends on if your goal is cash flow or appreciation or quality of living. If it's quality of living anywhere north of Old Town, if it's appreciation anywhere north of Old Town, if it's cash flow anywhere BUT Scottsdale.

The Turnkeys I bought, cash flow really well but they are not in Scottsdale. Scottsdale is generally people who made money somewhere else and paid cash on the sub $500k market and those properties go really quickly. The nicer places start at $1mm and it's really hard to cash flow in that range.And you have to be mindful of HOAs there. They even have HOAs within HOAs They are mighty proud of their gatekeepers. 

Originally posted by @Joshuah Mundy:

I have talked to people who own homes in southern Flint and Mott Park. I see the numbers and I don't know why not. I've run my numbers on high vacancy and with conservative numbers.

Does anyone invest in Flint? Why? How is it going?

Has anyone invested in Flint? Why don't you anymore? Would you again?

I would appreciate all the experience you all have.

And we don't need anyone saying "it's ghetto" because duh. Most of Flint is nothing like the media says.

I'm looking for facts. And experience. Thanks all!

It's the water.

Originally posted by @Pete Storseth:

@Mike S.

When you did this, did you use an rmlo?

rmlo? Does that mean Rolling in Money Laughing Outloud?

Originally posted by @David de Luna:

I know that RTO buy rate is somewhere around 5%. Does anyone know the buy rate on seller-financed deals - the ones where I, the seller, seller-finance my houses, as opposed to RTO? Really, to me it's semantics. I hold the deed for the duration until the 5 year balloon, at the end of which I discover if they will buy, walk, or renew.

I just had one fail in Dec 2019.

I had gotten $20,000 down as an Option fee on a 3 year lease option signed in Feb 2019. In Dec they decided to move to another state. My option agreement makes it clear that it is nonrefundable. So, they stopped paying in Nov 2019, moved in Dec 2019 and I put a new tenant buyer in Feb 2020 who gave me a $25,000 option fee.

I wish they would fail more often.

Just kidding. I've spent about $5,000 remodeling and lost two payments but collected $20,000 from optionee 1 + $25,000 from optionee 2 and bumped up the sales price $40,000 all in one year.  So I guess I'm about $38,000 cash income ahead for the year which is about $3,166 a month on a "failed" seller finance.

Originally posted by @Greg H.:

Originally posted by @James Wise:

Originally posted by @James Wise:

Originally posted by @Account Closed:

@James Wise in fact a quick search gives this for Cleveland (no wonder you're so sensitive about it, but the authorities do act!)

This Thread is Called: "Subject To" Real Estate Investing is Slimy. Prove me Wrong.

@James Wise says "In a turn of events that was shocking to no one at all, the two dudes
in this thread who've been howling at the top of their lungs that
Subject 2 was indeed a legitimate business model are now identified as "Account Closed." 🤣"

and your response

"Which had NOTHING to do with this topic"

Very clever Observation, I get your sardonic comment. ;-) Lol

Sardonic:

adjective

"characterized by bitter or scornful derision; mocking; cynical; sneering: a sardonic grin."

Well, it's always best to quiet those we disagree with, it would appear @James Wise

Originally posted by @Tyler Smith:

does anyone on here have any details on the 43609 toledo ohio area?

Prefferably id like to connect with some of you for further questions.

Im looking for single family housing and id like facts and statistics that are current and related to those. or atleast pointed in the right direction.

Please and thanks

Here is something to get you started.

http://www.city-data.com/zips/...

Zip code 43609 compared to state average:

100% urban
population.

Estimated median house/condo value in 2017: $53,079

43609:
$53,079

Ohio:
$144,200

According to our research of Ohio and other state lists, there were 90
registered sex offenders living in 43609 zip code as of March 01, 2020.
The ratio of all residents to sex offenders in zip code 43609 is 253 to
1.

Median resident age:
This zip code:
32.0 years

Ohio median age:
39.3 years

Average household size:
This zip code:
2.5 people

Ohio:
2.4 people

 Median household income below state average.
Median house value significantly below state average.
Unemployed percentage above state average.
Black race population percentage above state average.
Hispanic race population percentage significantly above state average.
Median age below state average.
Renting percentage above state average.
Length of stay since moving in significantly above state average.
House age significantly below state average.
Percentage of population with a bachelor's degree or higher below state average.

Races in zip code 43609 (2017)
13,607-49.4%White
5,1151-8.6%Black
3,734-13.5%Hispanic or Latino
927-3.4%Two or more races
166-0.6%Asian
930-.3%American Indian
40-0.1%Some other race
5-0.02%Native Hawaiian and Other Pacific Islander

Originally posted by @Yoel Frometa:

@Mike S.

Hello Mike that is a good way to avoid the agent not presenting the offer to the seller, but how do someone gets the sellers contact info?

There are list companies that allow you to put in an address and they tell you everything you need to know about the property.

You can also look it up on the assessor's website in many locations.

Originally posted by @Trevor Bragg:

@Kumar Gaurav My only experience is between San Francisco and Arizona.

San Fran has a heavily increasing homeless problem with rising taxes plus its super expensive.

Arizona is increasing population by the day because thousands of people are leaving California to move there.

There are deals everywhere, but AZ seems to be appreciating through the roof without an end in sight.

I chose Phoenix AZ. It cash flows well, appreciation is good, they are landlord friendly, property taxes are low, it's close to So. Cal. , they don't have the craziness of CA, and employment and in-migration are at the top.