All Forum Posts by: Mitch Kronowit

I'm thinking about buying a large SFR north of Houston, such as Spring or The Woodlands. My plan is to use one bedroom as my own little apartment while working here away from my home in California, and rent out the other rooms to colleagues of mine in the same situation. A 4 or 5 br house would probably fit the bill.

I see the property taxes in Texas are high, but how are they determined? Would I be paying close to whatever last year's tax bill was or is the amount based on the purchase price (such as in California)? My tenants/roommates would be staying in this house for only a handful of nights per month, so it would be pretty quiet. Still, should I worry about any zoning laws for running what's basically a lodging house/"Crash pad"???

If this crazy idea of mine fizzles out and I decide to simply rent the house to a single family, what is the rental market like in Spring and The Woodlands? How are the schools? Is there any upside/appreciation potential in this market?

Thanks for any info.

I'm not a CPA, but I discussed expenses related to property acquisition with ours and he said up until you own the property, your expenses basically go on your Schedule A under "investment expenses", then after you own the property, they go on your Schedule E.

So Sharad, your units are in the Chicago area? Thanks.

Wow, that's amazing. I would buy one of those today and another next month! By summer 2012 I could quit my job! Is that in the Chicago area? What part? I'm afraid the neighborhood would appear much scarier to me than to you, but I have some friends in the Chicago suburbs I just may have to hit up for some intel. :idea:

Wait, have you gone 4 months with no rent? Yikes!

I remember seeing 3-day notices available somewhere on the Internet. Perhaps Nolo.com has something.

But first, you need to check your state laws. Make sure you fill out the 3-day notice absolutely correctly. Then follow your laws for posting it. You may have to "mail and nail" the notice, which means send one copy to your tenant via 1st class mail and post another copy on the premises in a "conspicuous" location.

Good luck.

In my area? Yes. In other parts of the country, perhaps not. However, from what I've seen presented, those properties that meet the 2% "rule" all seem located in lower end neighborhoods. Even if the residents aren't shooting up every day, neither will the property values ever.

If you look at the range of RENTS for a typical 3 bedroom house in this country ($800-2,200/month), you'll find they are much closer together than the PRICES of 3 bedroom houses ($50,000-400,000). That tells me in order to find 2% "rule" rentals, you're either going to have to maximize the rent (difficult) or minimize the cost (easier). So, where do you find houses that are much cheaper without giving up too much in the rent? Poorer, lower-quality areas.

LOL! C'mon, I know Utah is known for wholesome family-oriented Mormon ideals, but I've seen parts of Utah I would NOT want to walk down after sundown.

No, it doesn't have to be out-of-state to be a headache. It can be next door! What I'm getting at is many investors look at a $35,000 house in a undesirable area (no, bullets don't have to be flying), see that they can rent it for $700/month and believe they've found a helluvadeal. Fine, if you buy that house and get that $700 in rent, month after month, year after year, with very few late payments, missed payments, extended vacancies, evictions, and/or property damage, then you're right, you did find a great deal.

If anybody here has several (not just one) rentals in a certain area that truly meet this 2% "rule" AND have met it for several years (not just the last 2 months since you bought the place), I would really like to know where they are. I'm ready to buy.

Congrats! Here's a few things to keep in mind when purchasing REO's.

1. The bank's asset manager, who controls the property for sale, may have very well been serving hamburgers and fries this time last year. They have probably never ever seen the property you're interested in buying and may very well be located clear across the country. Also remember, they have several houses for sale, not just the one you're looking at. Expect delays, stupid questions, and lost paperwork.

2. The listing agent, who represents the bank (seller), could be a very knowledgeable and experienced real estate professional or a complete friggin' moron previously fired by Amway for being too annoying. If the latter, realize what a great team they form with the asset manager. Hide all your firearms and edged weapons during this process. It's simply not worth it.

3. I would not waive the inspection contingency unless you're 110% certain you know the condition of the property and/or are dead set on buying it come hell or high water.

4. Since you're paying all cash, waive the appraisal contingency instead. Do this even if you're financing the purchase and have a very good bead on the property's value and have the funds to cover the difference.

5. Make sure you have valid proof of funds in regards to #4 above. If the asset manager has been on the job for about a week, they might accept a figure scrawled onto a cocktail napkin. However, if they're a hardened veteran of over 3 months as the bank's agent, they may not fall for it.

6. Don't offer to close in 5 days unless you're ABSOLUTELY sure you can do it. Protect your deposit. Ask for an extension long before you think you'll need it.

Good luck. Tell us how it goes.

Ummm, I'm not sure this is a Realtor's function. A Realtor can help you locate property that meets your criteria and perhaps set you up with a lender or two, but find cash buyers for you to wholesale to? If they had a list of cash buyers, they would sell directly to them and not need you. :idea:

Is this any help? http://iaei-michigan.org/Product_Info/CSST/Tracpipe.pdf

Looks like you place a grounding clamp around the pipe fitting. I'm thinking a 10-12 gauge bare copper wire should suffice.