All Forum Posts by: Robert Leonard

Well, a lot can happen while you sit on the sidelines waiting for "the right time" to buy. I understand that not everyone has the same risk tolerance. But as I see it, a person would be far better off buying a single family property that is at the entry level price range, that would make a great rental as they are available more frequently than that "perfect" house hack small multifamily that so many people are seeking. 

How would you do that? One way would be to go to Homepath.com (there are several similar programs) and setup a search for properties that fit what I just described in your area. As an owner-occupant, you get to buy before investors and have less competition. It creates opportunities for you to buy what are often undervalued houses that aren't in need of total rehab. Nothing takes away all of the risk, but buying below market value takes some of the market risk out of the purchase.

I would stop looking at half a million-dollar multi-family properties and look at decent places to live that might make a great place to start building a portfolio of solid rentals or just more equity to eventually buy that bigger multifamily property. You sound like you are very disciplined with your money, if you can keep most of it in reserves and acquire properties below value and build equity toward future investing, I think that's a good way to position yourself for bigger things down the road.

This is a noble idea, but the difficulties usually happen when life events (the "dreadful Ds" = disease, disability, death, divorce, disagreements) complicate things. Are all of you available to help with maintaining the property or will one of you who lives nearby carry more duties to help take care of the place? Do you all have the same financial ability to pay WHEN the AC or roof needs replacement? If any of those dreadful Ds happens and one of the owners has to settle with a spouse for a share of ownership or loses their ability to contribute financially, how will that work?

I'm not saying don't do it, but you really need to think through how y'all set this up and keep your exit strategy(ies) in mind. There is always an exit for every property. The more owners, the more complicated to exit the property for you or your heirs.

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This property is for sale and I meant to post this in the market place. Sorry if it ended up in the wrong place?

Yes. You can buy with cash and then cash-out refinance. Lenders have different rules for where the cash came from. Some will finance quicker based on appraised value, not cost, if you are repaying a line of credit than if you were using your own cash. When you talk to lenders to decide who to work with, ask about their seasoning requirement. That is the amount of time they expect you to own the property, before they will allow you to refinance it based on the appraised value, and not your cost to acquire and rehab it.

Hi @Suzette T., I recently had a parent offer to pay 6 months rent in advance to help get his two young applicants get an advantage at acceptance despite their lack of rental history or any stability in their employment histories.  I did not take the short term windfall over a highly qualified applicant who will likely be with me for years. Stick to your criteria and you will be fine in the long run.

Unless they have years of experience as property managers, I would not expect a great tenant, to make a great property manager. That's a little too creative for me. The sublease prohibition is not coming out of my lease.

There is a bit of "pent up demand" from several new and experienced investors who usually attend networking meetings here monthly. I just put this together to do some cross-talk and make some introductions to some of the investors and those interested in investing in our area. 

The second Tuesday of the month is when the regular meetings happen. Get more details at meetup.com/the-ring

Agenda:

1. Introductions [Keep it short. What do you do besides RE? Family? What do you do for fun?]

2. Share any Wholesale deals you have to offer. [ No deals are approved or recommended. Due diligence is the buyer's responsibility.]

3. Ask for and offer recommendations. (Please, pace yourself if you are "building your team." If you go down your list and ask for recommendations for every key member of your team and try to build it all at once, it appears very self-centered. Be respectful of everyone's time.)

4. Share a success story. [Keep it short if possible. Focus on a few key takeaways that were surprises or unexpected.]

All of these are voluntary and as applies for those who can attend. If any of these agenda items don't apply, no big deal. We can always learn something or get to know people who can help with our investments just by "being in the room."

See y'all soon!

Hello Antonio and welcome to BP.

The requirement is that the owner provide heat. It can be from any number of types of heat source and it does not have to be central heat.

There has to be good window screens on every window to allow the occupants to open the windows for air circulation without getting eaten alive by mosquitos. I’ve heard of landlords offering window units as “upgrades” that allow them to make what the appliance ”rent to own” place would make. Everybody needs some form of AC in this area. It is an opportunity for increased income for the property.

Richard Campbell does my inspections.