All Forum Posts by: Nik Corbaxhi

@Luke Hadden, look at opportunity cost as well. Not sure how Roofstock model works because you mentioned you are not loosing any money. It is hard to have a PM company  screen your tenants because their interest is just to find you someone, not necessarily the best tenant. Since you are not getting many applications, I would also ask myself the last sentence that @Kyle J. posted. Think about what you have to loose if this guys defaulted. 

Another thing to consider. If the property is without rent for months and your pool of tenants is almost nonexistent (which is what it sounds like), then you have to evaluate the root cause of that. Is the price too high, is the area not safe or people don't want to rent there? Then you need to adjust and make a decision on that. 

@Kavan Kucko, how about this. You buy the building and you tell your basement tenants they have to get out. While the previous owner kept it rented, you don't have to and I am sure you can kick them out, with or without their wish, legally speaking. Even if they have a lease in place, the moment the city finds out that it is not a legal living space, they will enforce it.

PLEASE, do yourself a favor and DON'T rent the basement. No matter what you do to it, unless it has legal size windows (which seems like it doesn't and it never will), and a proper separate exit, then you cannot rent it or make it legal. Go the route of adding it as additional storage to the first floor tenants and hopefully you can charge a bit more. 

@Ana Palmer, your residency has nothing to do with your HOA requirements. It is common that HOAs allow 20% of the units to be rented. If the rental cap has been reached, applications go on a waiting list and are entertained as people stop renting/sell their properties.

If you move to another state, nothing changes and you are still obligated to meet HOA requirements and play by their bylaws.

@Cole Farrell, owner financing is going to also come with a higher interest rate. 

@Steven Orgo, in addition to what @Greg Scott said, are you looking to get one house and call it quits or looking to grow your portfolio? If the latter, which option gets you to save x, in order to buy that next property?

I think you get the point that Chris and I are trying to make. We would put 10% and buy 2 instead of 1. Why? Because we would be interested in cash flow(more money to you) rather than equity.

I hope this helps.

@Nathan Faucett, while you are developing trust, there is no reason for it to be seen as "I don't trust you", especially if you spin it in the context of:

"hey I have have been watching you work on these and I am truly impressed with how you are handling the process. I am trying to learn and grow my knowledge and experience in the field and I could really benefit from some wisdom from people that have proven themselves in this field, like yourself. If you don't mind me asking, I am curious to know how you evaluate properties to make the decision of what is to keep as an investor vs sell?" 

While empowering the wholesaler, he feels obliged to tell you and share some of what he looks for on whats a good deal vs not, especially if you praise his skills and abilities. Although he might not tell you straight up what the issue or why a particular property does not work for him, you can read through the lines as he will most likely explain in general what he looks for when evaluating what to keep vs sell. The chances of why he is letting go that property is most likely one of those reasons. 

@Nathan Faucett, it is an interesting question and it is absolutely a legitimate concern. There is nothing unprofessional about asking why they passed on the deal, especially if they are also investors. It could be as simple as the return was not worth it to them, but might be to you. I think it is very important to build relationships with these wholesalers over time, to a point where if something is wrong with a property you would want them to disclose with you. In the contrary, they have to look out for themselves and will not disclose any major issues with you, strictly because they want to just get rid of the problem. 

@Mike Dunn, who is going to manage the flip? Is it your daughter or does she have a team that will be doing this for her? If the former, I cant imagine an 18 year old has much experience and probably a very bad idea. 

Here is some food for thought. How about you take that money and you invest in a property near where she is going to college. She can find a few roommates and she can practically live for free while she goes to college. Once school is over, you can sell the house. Properties near colleges have been showing great appreciation, especially if the college is in good standing and growing academically. 

@Scott Trench, you have to be confused by now. :) Based on the responses, pretty much every state in the US. Hard to compare metrics by location from that perspective.

@Mel Kline, congratulations on your purchase. If you have the time to manage it yourself, I would say go for it and that is the best way for you to learn the business. No doubt you will be facing challenging situations, late night calls, issues that you never thought would come up....etc, etc...but at the end, it will help shape you as a landlord and as a property manager. The good friend of yours is a bonus to always run questions by and ideas for things that you don't know how to handle. 

Doing it yourself will also save you the PM fees, so to me it is a win win situation to handle it yourself, unless you don't have the time because the opportunity cost is higher than dealing with this. 

Either way, good luck to you. Seems like you are on your way.