All Forum Posts by: Bobby Vernazza

Hey @Eric Stanley did you ever end up buying any properties in SA? My cousin and I have been thinking about taking a trip over there to check out the area and look at a few properties. Any insight you have would be much appreciated!

Hello Fellow BPer's!

As we move further and further away from what "normal" life used to be like just a short year ago, I am curious as to if any college town landlords have felt any repercussions in student applications. I have a few rentals in Corvallis, OR and they have mainly been rented by students over the years, yet I have slowly transitioned from undergrads to grads. Currently most of the tenants are graduate students, lab assistants or just your average person working the 9-5. However, I did have one vacancy this past June that needed to be filled and 90% of the applicants were not students. The past few years it was mainly undergrad students applying for the property. I am curious if other landlords are having the same result due to the uncertainty that colleges will be online or not next year and the concern about the spread of COVID on campuses.

Nothing is ever easy! At least the end is in sight. @Brad F. What brand manufactured home did you go with? I have always wanted to bring in a manufactured home on a lot with existing utilities just have not found the right scenario yet. Did you have to deal with septic/well, or did you have city utilities? How long did it take to clean the lot and get the new home installed? I am very interested! Thanks

Hey Anthony, I did the same thing when I went to college at Oregon State. I bought a place my sophomore year and rented it out to my buddies and am still renting it out. Prices in Corvallis have went way up since the purchase and I have close to 100k in equity now. However, one of my main goals was to get in state tuition as well. I had Oregon internships and jobs every summer yet the school would not classify my as a "resident" due to the fact that my primary purpose for moving to Oregon was for education. I had a house, drivers license, hunting/fishing license, paid utilities, property taxes, yet they still would not allow me to pay in state tuition. Hopefully it will be different for you. Just make sure you do your homework beforehand to see what classifies you as a resident. Good luck!

Hello Fellow BPer's,

I am looking at a property that is going to judicial auction in a few weeks or so and have been doing my homework on it, however I have stumbled upon something that I have never seen before.  A few years back there was a trustee sale where the second mortgage on the property foreclosed on the owners, it went to the auction, no one bid on it and now the 2nd has title to the property.  However, now the first loan is foreclosing on the original homeowners.  The court documents state "Bank vs. Homeowner", yet how can the bank be foreclosing on the original homeowners if the 2nd bank received a Trustee Deed for the property a few years ago.  According to the assessor's office, the 2nd bank has ownership of the property.  After the judicial auction of this property, does the 2nd simply disappear and now the winning bidder is the new owner?  I would not think that the 2nd (who currently owns the property) would give up their ownership after this auction.  If anyone has any insight as to how this might work, it would be greatly appreciated.  I am going to see an attorney about this, I just want to see what the biggerpocket genius's have to say first.  I know that when the first forecloses the second is cancelled out, but what happens when the 2nd has title to the property and the first is foreclosing on the original homeowners?  Thanks for any input! I look forward to hearing what people have to say!!

My local title company sends them out on a weekly basis

Hello Fellow BP'ers!

I am in the process of acquiring more properties to fix and flip/buy and hold, however I have not been getting too many leads. I have been doing the driving for dollars method, sending out letters every week to new and reoccurring properties. In addition to this, I have been keeping a keen eye on the Sheriff Sales in my area. I know the whole Sheriff sale process fairly well, as well as all the redemption right's details and timelines. My question is that I am looking for another avenue to pursue for lead generation and thought about NOD recipients. When the homeowner is filed a Notice of Default, they have roughly 140 days to get the loan caught up or their house will be auctioned off. So what it I create a marketing scheme to send letters to these individuals about 7 days after they were filed the NOD, 30 days, 60 days 90 days and so on until the final date of auction. I will most likely not get a response on the first letter because the homeowner thinks that they can borrow the money from Aunt Sue and Uncle Rob, but as the date gets closer and closer they will be getting more motivated.

If I get a response on one of the properties, I will then assess the value and financial situation, see how much they owe and proceed accordingly with a short sale (if possible) or simply buy the house from them.  Does this seem like a pretty good strategy?  What do you guys think?  I look forward to hearing what you have to say on this topic.  Thanks in advance for any advice!

Hello Fellow BP'ers,

A long story short, I have been talking with a new homeowner of a property he just recently purchased (about 1.5 months ago) that has been abandoned for the past 6 years or so.  He is planning on fixing it up and renting the place out.  He works full time and this is a side project that he does after work and on the weekends.  I have been talking with him about purchasing the property before he does too much work on it and raises the price.  One of the main reasons he does not want to sell, is that he does not want to pay short term capital gains tax.  The first thing that came to mind was to do a seller carry back.  I am not too sure how this works, but here is my idea.  He bought the property for 175000 and put about 5000 into it..180000 in total expense.  I am planning to offer him 220000 with a 40000 profit.  However, I am thinking about giving him 180000 as a down payment, alleviating the capital gains up front then, having a 5% interest payment with 5yr amortization.  This would create a yearly payment of 10000 {(0.05*40000)+(40000/5)} and a monthly payment of 833.34.  As a result, the seller would recieve monthly cash flow and after a year, short term capitals will be gone and I can pay off the final balloon payment of 30000 which will be taxed as long term.  All in all I think that this is a fairly good strategy, but I am not sure if this is 100% acceptable.  Any insight you guys have would be much appreciated.  Also I forgot to mention, he purchased the house outright in cash as will I. There will be no banks involved.  I look forward to hearing your responses!

Thanks for the quick responses.  I don't think that they are stonewalling me, they seem sincere that their house has been taken from them and they just don't want to talk about it.  If my house got taken from me, it would definitely be a sore subject for me to talk about with a stranger as well.

@Wayne Brooks how would I be able to look at the foreclosure action file?  Would I have to contact the bank on their behalf?  I tried to look up one of the properties on the computers at the county courthouse; however, I saw nothing about a foreclosure, just a bunch of documents dealing with evictions.  In regards to the other property, I could not find anything at all.  I have a program on my computer that will tell me what bank the owner used to finance the house, however they will not talk to me if I do not have a signed paper from the borrower stated that it is okay for me to talk to the bank on their behalf.

HelloEveryone, 

I have my eye on this property that has been abandoned for the past two years or so. It is in need of some good rehab including siding work, roof, floors and a full basement remodel. I've contacted the owner and will be giving him an offer sometime this week. However adjacent to this house is a three and a half acre lot with a large shop on it. My guess is that these two lots were initially one, however according to the MLS and county records the shop is being sold separately from the house, yet it has no physical address. I'm hoping to purchase the house and then purchase the shop property through the MLS and ultimately combine them creating a 4 acre lot with a large house and shop which would be very attractive for the resale. What is the process of combining these two lots back together? Has anyone been in a similar situation? The property is located in Marion County Oregon. I look forward to hearing what everyone has to say.