All Forum Posts by: Paul Pratt

You can definitely find good deals that are cash flow positive near me still. Taking appreciation into account the next few years will be rewarding. Tons of city projects and, Florida being Florida, are attracting all sorts of people to the area from New York, Wisconsin, Ohio etc. Most of my clients are relocating from out of state.

1 Vote

How long have you had your rentals? If it's been more that 6-7 years I'm sure you've seen a massive return. Fort Collins has completely changed, so much new development.

0 Votes

Fort Collins, Colorado

Quote from @Brian Jackson:

I am in Southern California and plan to purchase and keep a long term rental property locally even though its cash flow negative and the landlord tenant rights aren't great because I know the area and can do repairs on it myself. It is going to be cash negative for a long time but at the end I think it will appreciate significantly and have a strong positive cash flow.

That said before I sink my obligations into this I wanted to run the numbers against the most cash flow positive areas. Cash flow positive rentals would not tie up my finances as much and allow me to turn around and buy more. So with that said what are the most:

1) Positive cashflow cities?

2) Tax friendly states?

3) Landlord friendly states?

So essentially you are asking what states are the most opposite of California?

Let's keep it simple. Florida checks all the boxes to what you are looking for.

2 Votes

If possible I'd say get some opinions from a local mortgage broker as well. Banks shouldn't be your only source!

0 Votes

Chattanooga, Tennessee

Yeah Orlando is cracking down. Highly suggest looking for areas just outside main metros. For example Daytona Beach has set areas for STRs, but a few surrounding towns have none at all.

0 Votes

Orlando, Florida

It depends, you will probably not have any vacancy issues in LA. But you mentioned another state? If you are open to moving out of state obviously your options will increase tenfold. Could probably buy a 4-plex out of state and have a full unit to yourself for the same price.

0 Votes

Los Angeles County, California

-How are you qualifying the buyers? What do you want to see from them financially? Are you using a 3rd party to qualify the buyer?

Bank Statements, Tax Records, Credit Checks

-What would motivate you to do seller financing?

You are your own bank in this regard aside from slight risk (inevitable) and your property is struggling to get traction so you have to compromise.

-How are you setting up the payments? I know title will do a lot of this.

Monthly and a 5 year balloon structure so that at the end of 5 years they pay balance due or get a loan to pay it off.

-How do shore up the risks? Whats your plan when the new owner stops paying?

The risks are what a bank does every single day. And hopefully they don't because they have been properly vetted and have money into the property that would be lost.

2 Votes

Dallas, Texas

@Chris Seveney I don't think there will be any "fireworks" as I'm hoping everyone in this forum has enough data/info to not be shocked by this. Maybe non-investors would have more pushback on your statement.

Let's be honest, most people didn't get it in the 2's. Some did in the 3's and a lot of people in the 4's are mad they didn't get the 3's. Everyone else who waited is sitting back hoping for a miracle while home prices have stabilized and not crashed like they hoped.

Lesson, and I think you'll agree is be active when you can. Your window may close at any minute.

4 Votes

Quote from @Patricia Sander:

Quote from @Paul Pratt:

@Patricia Sander I think you're overcomplicating things.

1. Almost all real estate transactions are AS IS.

2. Within your inspection period you do your due diligence, if you don't like it you can back out and take your EMD with you.

3. You can ask for a credit but seller doesn't have to give it to you. Someone else will probably buy it if it's a solid property.

4. Any attorney who is urging you to complete a deal you're not comfortable with is not a good sign.

You’re right, I told her I was terminating and she said I can’t do that, I asked what she meant as the contingency still stood and I was unhappy with seller response to “resolve” and she said I should at least hear the seller out first even if I wasn’t legally obligated to. I’m going to CC seller attorney and both realtors about my choice to terminate and never use this lawyer again as this is way more stressful than it would’ve been if I had adequate legal representation. Thank you for your input!

No problem! Yeah, if your representative wants the house more than you do sounds like a red flag. Clients come first.

0 Votes

Jersey City, New Jersey

All Forum Posts by: Paul Pratt

Paul Pratt has started 8 posts and replied 89 times.

Post: What do you do when tenants harass each other?

Post: Finding a BRRRR that checks all the boxes

Post: Hello! Realtor in Northern Colorado

Post: Most positive cash flow cities, tax friendly states, Landlord friendly states?

Post: Local Bank or Credit Union

Post: LEGALITIES with STR in Orlando

Post: House hacking with condo in Los angeles?

Post: Seller Financing - From the Seller Side

Post: Interest rates are not going back to 3%

Post: Seller refusing asked for credits, offering repair credit instead.