All Forum Posts by: Ben Skove

I'll be a contrarian and say that it depends on your market. My two first hand examples are:

1) My grandmother's house was right across the street from steadily-used tracks. You simply got used to it and it became white noise. There were other houses on the street which were rented and didn't see steady turnover. When she passed, her children had no problem reselling it.

2) When I lived in Chicago, my girlfriend (now wife) had an apartment right next to the south shore train line. Didn't deter them or the other tenants.

It may well affect the rent you can charge, but I wouldn't say it's a deal killer.

Have you been inside the house when trains are going by to judge the noise?

It also depends on the nature of the subfloor. You may find it more affordable to carpet over (stable) subfloor problems than to correct them.

Try to get the neighbors involved as well (assuming they aren't.) While it shouldn't be as much of an issue with something as serious as gunfire, the more squeaky wheels complaining to the police the better.

Very prompt response to all maintenance requests, as well as keeping them in the loop when it comes to repairs that take longer. They definitely appreciate feeling as if they're not an afterthought.

I agree with the no-painting consensus. I don't trust my tenants with a paintbrush, wrench, or hammer.

I wanted to throw out what one of the local apartment complexes nearby that caters to students does - it's right along what George has stated. If a tenant wants to repaint, they have to put down a hefty deposit prior to doing so (separate from the SD), as well as sign a form stating that they'll return the wall to its previous color prior to leaving. I have no idea how many tenants actually take them up on it...it seems more like a good way to squash a request early in the process.

My understanding is that with deflation, people postpone purchases on the expectation that prices will continue to fall, which perpetuates the cycle. Real estate shouldn't be any different...buyers will wait for a better price. I suspect that falling home prices would also leave more people underwater, leading to more bankruptcy, short sales, and tight inventory - not unlike what we're seeing now.

Kevin Yoo - I think you're right that very low interest rates would make for cheaper debt. However, my worry would be that since the PITI is fixed, your cash flow will decrease over time as rents go down. You won't be able to count on raising the rent on a regular basis.

Flipping would become much harder, as you'll have to find a seller who can both find financing and is willing to buy now, rather than waiting for a cheaper price.

Honestly, IMHO, real estate is a tough investment in deflationary times. For a short term fix, I'd try to lock in tenants with longer leases (yeah, I know, tenants have nothing but respect for a lease....) Your income stays the same over the period of the lease, while your expenses go down.

Jerred Morris Evidently they learned from Al Capone's mistake!

Congrats to both - I appreciate the work that y'all put in!

You're right, Ned, I'm sure they could...sadly, they're not willing to budge on this, even though it seems to be to their advantage.

Cash for keys is my next step. I know people in the neighborhood, so I'm trying to bring someone along today who knows the squatters and can mediate in a neighborly way. We'll see how it goes.

The plot thickens. They current investment group owner is in the process of buying a bulk number of properties from the lender. Most have been transferred, but this one has not because there are squatters in the house and they have to be legally evicted which could take the Court system 30-120 days (his estimate).

They will take $9600 cash. However, there are 3 current issues with the house that will NOT allow them to accept any contract: 1) The bank is only willing to take cash at this point (which isn't a problem), 2) They do not have legal access to the house yet, so it can’t be secured which does not allow them to sell it and 3) There are squatters on site and they have to be evicted which means they can’t access to it. They will NOT accept any contract with contingencies about access and with squatters at this point, no exceptions.

They want me to call every 2 weeks to see where things stand. What I see is that over the last couple of days the squatters look like they're moving out. I really want to make any vacancy as short as possible because of the theft/vandalism issues around here. I have the feeling that the investors will evict by the book, rather than claiming abandonment. Honestly, I'd almost rather the squatters stuck around until set-out!

Has anyone dealt with squatters PRIOR to taking ownership? I have a feeling I'll just have to suck it up and wait, but it chafes. Oh how it chafes! :)