All Forum Posts by: Richard Patrie

After 3 months, there are still outstanding issues. The property isn't rented. It failed HUD inspection because the PM didn't have the furnace or hot water heater installed, and the pipes were froze. I fear this whole venture was a tremendous mistake. I am now looking at C-class neighborhoods near me and finding better houses for the same price.

@Gary L. The property is in Detroit, and it's a different PM. So far they've been responsive. 

I just received a call from Clayton and spent 20 or so minutes talking to him. I voiced my concerns and he told me how they were going to address the issues. The guy was sincere. I understand that there are bumps along the way when you're dealing with human beings, and I am very patient. All I ask is to keep me in the loop. 

I think the real issue is that they've grown too fast. They don't have the cycles to handle the load. They need to hire more people or cut back on what they sell. Clayton has been good at getting back to me, but I need to initiate the interaction. I bought one house as a trial balloon. The podcasts are very good, and I may apply that knowledge to properties closer to me. I can pick up homes in my area for around 20K, rehab and spend as much as I would with them. 

I closed on a house in early Oct. the Property Manager went through and handed me a long punch list. I was under the impression the properties were "rent ready". I emailed Morris Invest and they assured me that their crew was on it and knocking out the items. A month goes by and I receive a work order from the PM to approve $1,500 for the items Morris Invest told me they were addressing a month ago.

The communication has been close to non-existent.  The advice from the podcasts is invaluable. However their business model needs a lot of tightening up. They've already come back to me with other properties to buy. I got all kinds of attention when it came to closing. I am hoping this isn't a case of wham-bam-thank-you-ma'am. 

I closed on a house on Friday. So far it has been smooth. I just got the property insured and completed the paperwork with the recommended PM. Now the fun begins. I will report back.

I went through Bank of America. The HELOC was on my primary residence.

I've replaced my conventional mortgage with a first lien Home Equity Line Of Credit (not a home equity loan). Instead of extra mortgage payments, I only pay interest on the outstanding balance and I can make additional principal payments while still having instant access to the funds if needed. I don't know how many lenders would approve a HELOC on an investment property. You'd have to shop around.