All Forum Posts by: Eric Hathway

Thank you both. Chris, I didn't want to draw the funds until I got a property under contract as to not accrue interest on the borrowed amount. But it sounds like Corby's recommendation will work. I do have a statement showing the available balance. Thank you to you both for the advice! 

This is my first BRRRR. I'm offering cash on a foreclosure and the seller wants proof of funds. I have a home equity line of credit which I set up for this purpose with a more than sufficient limit.

Should I provide them proof of the line of credit?

I emailed my agent to ask her, but I wanted to get some other's people thoughts also. Thanks in advance. 

@Raymond Hill

I purchased a triplex with knob and tube and was able to negotiate with seller to give a repair credit. The seller only agreed to pay for rewiring with surface mount wiring. I didn't have to have any walls torn up. It's not as classy as concealed wiring, but it gets the job done. Also, my insurance company (USAA) was alright with it being K and T.

Great answer. Thank you. I also did a bit of digging g and found that the current owner bought it 3 years ago and is taking a $20k loss just to get out of it. 

It is beach house which clouded my initial judgement, but there is too much that smells fishy to move forward. 

Thanks again. You are exactly right. 

I'm viewing a 3BR property tomorrow (dirt cheap at $65k) which is being sold as just the house- the land will be leased. The land lease is set at $500 a month for the next 5 years and there is a 10% cap on any increase for the following 5 years. After that, no guarantee as to the increase.

Is this normal or is that a red flag?

I would plan on renovating the property, renting it as vacation weekly rental to cover the land lease price, and also go there myself on some weekends. I would try to negotiate a longer commitment of the land lease or possible buy out, but if no commitment is reached within 3 years, I would sell the property to avoid getting stuck with the possibility of a huge lease increase at the 10 year mark.

Any thoughts? This is new to me so I'm a bit hesitant. Property listed for $65k so not much downside. I'm going with my contractor tomorrow to inspect prior to considering placing an offer.

Huge thanks!!! 

Thanks Ryan, that would be an ideal setup. Thanks for your input. 

@timmiryerson - I like that plan. Great ideas. Sounds like a well-oiled machine.

@camilecase - that would be good to keep him on track. Thank you.

Unfortunately, I get no heat calls or no electricity calls from some of my older buildings.

Anyone have any reviews of call service companies? 

I have 30 rentals that I manage the day to day things, but the maintenance guy gets calls during dinner and before 8am (despite multiple notices to tenants regarding appropriate times to call for non-emergencies). I would like if he could transfer calls after hours to a service who can field them and react appropriately.

Does anyone use an after hours answering service? What are the basics of what they offer? Do they field calls and decide when to call the 24 hour maintenance guy? I imagine they dont have to be local- maybe they need a 1 800 number. Any company recommendations? What should I use to compare one company to another?