All Forum Posts by: Ron T.

 @Philip Mullinax

I too am in SC and own 2 rentals in the Columbia area. I do not do my own maintenance these days. In January I had a toilet replaced on a weekend (higher labor rate) by a licensed plumbing company...with a vinyl wrap on their van and everything. It cost me $350. That included a Kohler toilet they bought from Ferguson (not Lowe's) and a trip charge to diagnose. 

It is possible your tenant is seeing a $600 bill and thinking you are trying to take advantage of them and turning combative because of that. In SC that is double or more what you should pay. If I were in your shoes Id even be worried about that passing muster as "reasonable and customary" if asked to answer in front of a judge.

There is a difference in being a licensed business and holding a plumbers mechanical sub contractors license. For replacing a toilet a licensed handy man is plenty acceptable. Its also why I maintain my SC contractors license, though that has it own concerns....

I own 2 small MHP in SC.

IMHO Converting the POH to lot only is the last thing I'd do.

Unless you plan on owner financing and then reclaimng when they default.

Sure taxes are a thing but...cash flow is better for POH.

I know Marion well. Marion is NOT a dieing town. It is a stangant town, but there isnt a dieing town in SC, imho. 

To answer your OF question...why would I as a tenant accept ownership in a depreciating asset for the same thing I am getting unlimited use of that asset and also take on maintenance and repair responsibility. Most renters are renters for a reason, and MHP renters even more so. They dont want to worry about the AC going out they want that to be your problem.

1 - There are much much better lender options in SC.

2- This isnt a cash poor game, despite what you may have read in a get rich quick scheme. There is no way I would buy a 100k investment property if I didnt $50k sitting liquid.

3- You mention Columbia/Sumter those are 2 very very different markets. I know SC extensively  and OH a little bit. That's like saying I am thinking of investing the Dayton/Cincinnati areas. Both of those markets btw have some "$100k yellow lines"...thats a term a partner uses for when which side of the street you are on makes a $100k difference.

In both markets today properties are selling above asking in days if not hours. If you think you have found a $150k house for $100k you are almost assuredly wrong.

To expand on previous thoughts in the thread. We are int he middle of a real estate boom. Everytme real estate booms the market gets flooded with eal estate agents who think its a quick buck. I'd wager that over 60% of current agents have never worked in a down RE market. Meaning they dont know HOW to work. 

A whole bunch are lazy.

So if you want them to work for you, you have to manage them. Ideally you go find a good agent. That will be hard from half a world away. So short of that create systems for yourself to make the deal work.

As others have alluded to. Saying 'I want you to call me to disucss this property in 3 weeks'...An agent hears that and says: 1- This may be a scam 2- This guy may not be serious 3- If the guy is serious he may not have the money 4- If he is serious and has the money we probably are going to get beat by another investor. 5 if everything goes right and this guy buys this property and uses me since he is half a world away I am going to have to do extra work since he isnt local (remember I just told you they were likely lazy)---and even if I get pastt all this. Its a $30k property.  6% commission split between aseller and buyer and then my broekr takes 50% of my 3% So I only make $450. Taxes eat 35% so I clear $292. Then I have to drive to a closing and do paperwork and and and...Ill just pass.

That's the inertia you are fighting.

You could fix some of that by better wording your intro. I want to buy this house. I know I have to wait 21 days, but if it clears 21 ddays I want to write an all cash offer on day 22. I want you to represent me. If you are not interested in this deal please let me know so I can find someone else.

Personally on these small $$$ REOs I always work with the sellers agent or someone in their office. Their broker is then doubele engaged to make them work and get the deal done. Its still small peanuts $$$ wise but brokers like short DOM values. So they will encourage them to close quickly.

Finally, the biggest mistake you made was almost buying this property. I know this property. I wouldnt take it for free. And I live 20 minutes from it

Good luck. I havent found  (a good) one in a decade of looking.

It should go below 69. I live in SC also. Now it will never get it to 50, but I leave my upstaiors office set on 65 - I like it cool. Its 65 in here today and it isnt runnign constantly. YMMV of course.

Electric tankless is a horrible idea. Gas tankless is fine, its my preferred.

If you dont have gas service, get a tanked heater.

From an engineering perspective electric on demand heaters are a joke. They will also consume so much more electricity i will shock you. You also will need additional circuits ran to support them.

Its called the redneck riviera for a reason.

No way no, how would I. And I have before.

There are 2 weeks a year you better not rent it out and id recommend boarding it up, lol. Both bike weeks were hell on my properties.

Actually one of the benefits to the area is very reasonable lawyer/title/close fees if you have the right attorneys.

Cash close on that property I could stay under $1k. But Ive closed dozens with my atny and I get a rate

As Jared said, your property taxes on the Rock Hill property are WAY off.

Your property taxes on that property will be over $1k/year. 

Your valuation is top of the mark there.  You may get a $95ARV, I think 89 is much more realistic.

FWIW, just ran that house through my spreadsheet. My max offer would be $48K IF your rehab $15k number is right.