All Forum Posts by: Robert T.

Hi, 

I just bought my first rental property  last month.  I live in NY and my property is in FL so the property will be run by a property manager.  

I just received the property management agreement and the cost of property management is a little higher then I expected.  Could somebody  please tell me if the fees of this deal are reasonable.

Property location: Ocala FL

Expected Rent rate: $900

Fee for managing tenant relations: %10 of gross lease value

Fee for managing  property: $100 per month.

First  months rent goes to property manager.  Also, 1st month rent of renewal's goes to property manager.

So then this would mean $190 every month goes to my property manager for a property that rents for $900.  Is it normally that high for Ocala FL?  

Thanks

Thanks to everyone for your advise.  I've just emailed my property manager  to just do a standard renter agreement with no option to purchase.  

I would say it benefits her if they buy the house because she is also my real estate agent.   However, I would prefer they not buy the house.

I'm still leaning  towards just renting it now.  If I were to do it,  and the person buys the house, then I would be annoyed that I no longer own the house.  If I do it and the person does not buy the house, then I get the 5k deposit but I have an angry tenant that just lost 10k living in my house.

Does this strategy have any conflicts with the  Dodd Frank/safe act that I should be worried about?

The problem with having the person build equity by paying above market rent is that I don't actually want to sell it.   The 10k deposit(with very little chance of them actually buying it) my property manager suggested is the main draw to this strategy for me.   

Matthew, Thanks. Having the person pay above market rent I don't think was part of my property manager's plan. If the person does this, and they are not able to buy the property after 2/3 years, the amount they paid above rent is mine to keep, right?

Matt, Thanks.  Screwing over a person that is currently living in my property does concern me.    I'm starting to lean towards just renting it.

Hi, 

I'm new to real estate investing and I just purchased my first single family home last month and I am ready to find a renter.  I live in NY, so I purchased an out of state property in FL.  

My property manager, who is also my real estate agent, suggested I do a Lease Purchase option instead of just renting it to a tenant.   As this is not what  I was originally expecting to do, and I am very new to this,  I would greatly appreciate somebody else's opinion if I should do this.   Below is how it was described to me by my property manager. 

The property has a current value of about 100k.   She would find  a person for a Lease Purchase contract that would pay 130k in 2 years.  That person would have to put down 10k as a deposit.  If they do not purchase it in 2 years(such as being due to not being able to get financing), they would lose the 10k deposit.  I'm told that less than 5% actually purchase it.  As the property manager is the person that found the person to do the "Lease Purchase" contract, the deposit would be split with her(5k to her, 5k to me). 

In the unlikely event the buyer is able to get financing in 2 years, then they would pay 130k as the contract says, which is 30k over what it is worth.  Even though I do not want to sell it, I'm willing  to do it due to the large profit I would make.

Does what I describe  above make sense to do?   Does anybody see any potential problems with doing this lease purchase method instead of just renting  it like I was planning?

Thanks

Thank you.  If the person I hire for repairs tells me he has Workers compensation insurance, and then he gets injured on my property and I find out he does not, would I be liable for this injury?

Also, does having the property in an LLC limit liability to just that property for a workers compensation claim?

Thanks!

Hi,

I expect to be purchasing my first rental property in Florida in the next few months.   Will I need to get workers compensation insurance for it for whenever somebody does repairs at the property?   

What if the person who does repairs on it already has worker compensation insurance?  Should I get the insurance as well?  Also, will the cost of workers compensation insurance be cheaper if I only contractors that have their own insurance?

Thanks