All Forum Posts by: Bob B.

When I make an offer in a completive situation I offer cash, as is, with a quick inspection and significant earnest $.  Most buyers want to put up $500-1000 and $5-10K  earnest $ on an under $150K property will get their attention.  

 He will soon move up to reading criminal and or fictional stories.

@Marcus House If your insurance company sends you a rate increase you have the option of paying the increase or finding a new insurance company.  Your tenant has switched places with you.  They now have control your property and you're using the excuse "Given that it is still cold outside (don't want to take on the cost to winterize the property)". Spring is almost here, you don't need to winterize anything. It sounds like they have been a good tenant and I bet you can find another one.  I'd allow this tenant the opportunity to pay the increase or find another place to live. We've all been where you are, not wanting to "rock the boat" and have to make tough decisions.  

I tell them I'm not interested.  

IF this is your first rental I would probably use a good management company for the first year or so until you have time to learn the ins and outs of being a landlord.  Join a local investors group and find a good mgt. company.  Keep learning from BP and then self manage. You won't have a lot of cash flow now but its will get better. Congratulation on your first purchase.  

@Justin Triplett  It's great that you are pursuing a marketable degree. 

Jaron is correct.  Stay away from personal debt, keep saving money, live below your means.  Read Dave Ramsey.  Your friends will laugh at you for your frugal lifestyle but while you will be a landlord they'll be tenants.  Hang around like minded people.  

I would suggest that you learn a trade.  You don't have to master it.  Plumbing, electrical, carpentry, anything construction related will help with your overall assessment of rehabbing.  Take your time, it's a marathon not a sprint.  Don't look at the super stars here for a benchmark.  They aren't the norm.  Not to say you shouldn't hope to get there. 

Sounds like you have a good start. 

Good Luck

@Victor Colon Are the tenants on a lease?  If so you have to honor their lease.  If you haven't asked this question and your agent didn't bring it up, you need a new agent and also need to step back and not tackle this project until you know more about being a landlord. You might find a local partner or mentor. 

Housing affordability isn't a problem.  

The house I owned in 1984 would have had a $130K Mtg at 14% and a monthly payment PI of $1540.  My payment was less because I assumed a 12.5% floating LIBOR loan I never really understood but was glad to have it. 

The same house today could have a $350K Mtg at 3% and a monthly payment PI of $1475. 

There are plenty of lower priced houses in the area that will have a much lower mortgage payment than what I had in 84. The problem is too many potential homeowners have no self control when it comes to spending and credit.  They have student loans, credit card debt, 18 months same as cash for disposable furniture and at least one car payment.  Not to mention a couple of $4.00 coffees a day and no clue what brown bagging is.

I'd bet that most college grads spent more time learning the ins and outs of student loans than budgeting and financial planning.  It's the school and parents fault.  

This is why there are so many renters and it's not going to change anytime soon. 

I'll get off my soap box now. 

@Amanda Gant Dave Foster will take care of you.

"I've emailed and texted, so far no response. My main concern is if I dont go through the eviction process, can I legally repossess my property and re-rent it? I'm concerned if they randomly appear and claim I wrongfully evicted them."

Your concerns are valid.  I would check with a local attorney to see how best handle it.  Your local laws might allow you to re-rent, but it's your word against the friend.  If you throw the bed out they'll claim it was a priceless family heirloom and the mattress was stuffed with cash.