All Forum Posts by: Sabrina Baldwin

@ David David

although legislation has changed my condo would still not get approved based upon the new rules. I will reach out to a mortgage broker to discuss. Thanks.

Thanks Mark. I've never done lease purchase options but I'm open. The condo community is Kings Heights Condominium Association off North Kingshighway, 63115 zip.

I have a condo in a lower income community that I've owned for about 20 years. I'd like to sell it now but the condo is not approved for FHA lending. There is a comparable condo in the current community that's on the market, has been for a little less 90 days and has had 4 contracts which all fell through due to not being approved for FHA financing. I confirmed this with the listing agent. Does anyone have any creative ideas on how to get it sold or ever have this issue? I don't forsee the HOA or condo being FHA approved for quite some time even with the new less strict FHA guidelines.

Did you try contacting a local broker or realtor, visiting realtor.com or even Craigslist to see what other similar homes in the area are listed at?

I think it's a smart idea, just another form of OPM. My suggestion is to loan the money from the GP if at all possible instead of utilizing the credit and becoming a partner to avoid the family disputes once he/she is no longer on this earth. He/she may be willing to forgoe the balance owed once deceased. If utilizing the GP's credit have something in writing to avoid any disputes

Years ago, early in my investing career, a friend of my grandmother owned a duplex free and clear that he wanted to get rid of. I agreed to purchase it from him but never agreed on a price. He allowed me to put my name on the deed and agreed that he would remove his name when I paid him off. Years went by and we never agreed upon a price, didn't speak often and I never had any dealings with the property. A while ago my mom informed me the owner was in a nursing home so I figured I'd better make a decision on the house. I spoke w/ an attorney about purchasing it correctly so it wouldn't seem as if I was taking advantage of an elderly guy in a nursing home. I procrastinated too long and found out he died over a year ago!

I now own a property with a dead guys heirs. My lack of knowledge back then resulted in the deed being completed in a manner in which his share goes to his heirs, not to me (i.e. I completed the deed myself instead of hiring an attorney). He had 1 sister and she passed away and to my knowledge he has no kids. I do believe he has a niece that is strung out on drugs. The house has been sitting for years. I did pay a $1000 sewer bill that was owed b/c I was served by the courts and it was going to show up on my credit. What should I do with the property? I've spoken to my attorney and he suggested the following options:

1. Let the house go for taxes (only $950 is owed)

2. Keep the duplex, fix it up and rent it out, knowing that I'll never be able to sell it and the heirs could come along at some point and open an estate on the duplex

3. Open an estate in his name myself in order for the courts to determine if he has heirs and if not, I could potentially get the house.

I would have to spend about 20K to make it livable.What should I do?

You can also check HUD's website as I believe they list lenders in your area.

Welcome to BP! I'm in St. Louis as well. Try www.stlreia.com and/or Google St. Louis South Side Investment Club.

Search around more on the BP website as well, you'll find a wealth of valuable information. 

Good luck to you both!

I personally own rental properties in the lower income neighborhoods of St. Louis. At times I've wanted to just give up and sell them, burn them, etc. and other times I'm proud to own them. At the end of the day I personally love being a Landlord though! 

I understand some of the BPer's "steer clear" attitude but when I drive around the lower income communities in the STL, I get angry. It's unfortunate that so many folks think like some of the BPer's and don't want to have anything to do with these parts of town, and trust me, I get it, but there are so many dilapidated buildings, overgrown lots, drug dealing and dirty parks and children live there, good people do live in these parts of town. Somebody has to care, and I do. I can't save a whole entire neighborhood but I can do my part. So I've made a conscious decision to buy and hold in these areas. I constantly pick up trash, call the Citizens Service Bureau, etc. It comes with the territory.

All low income individuals are not on drugs, destitute and without morals and values as some would have you to believe.  Some of my BEST residents have been on Sect 8 and have lived in my lower income units in the lower income neighborhoods for 5 plus years, and kept them clean. Landlording in the low income community takes thick skin, sound financial management and the time to be hands on. I'm still learning how to be a better Landlord and how to manage these types of properties after 10 plus years. Over the years I've learned a lot and I'll say it's hard but I wouldn't deter you from investing in these types of areas, just be prepared and have realistic expectations. 

-I would suggest finding a mentor with someone that invests in these types of areas and is successful at it.

-I wouldn't overly renovate a property in case it gets completely torn up you wont be disappointed and out of money. 

-Finding good tenants may be hard but don't let that force you to pick anyone just to get a unit occupied. 

-While the unit is vacant it's highly likely it'll get vandalize or someone will attempt to vandalize it. 

-Lots of folks applying to these types of areas have a lot of financial problems (I charge a deposit 2x the rent, the legal allowable max)

-Get to know the folks in the neighborhood so they'll look out for you. 

-Finding good vendors to work in these types of communities may be difficult. I get a lot of "we don't work in that area". Some of the neighbors might be handy though (the guy 2 doors from my duplex cuts my grass).

- Start small and invest in Class A or B communities to balance things out and to keep your sanity

-Mrlandlord.com is also a really good online resource for hands on landlords that work in all types of communities. I've gotten some really good valuable information from there to help me do a better job with my rentals and dealing with my residents.

Good luck

I've been landlording for ten plus years but only recently am I having an issue with tenants that move out before their lease is up and don't clean up the unit. They forfeit their deposit according to my lease when they move out early but then I don't have funds to recoup their cleaning fee. At what point is it not worth pursuing owed funds? Less than $100, $200 or $300?

The latest issue: Resident informs me that he'll be moving out at the end of the month (April 30th) but his lease is up May 31st. In the lease I have a specific clause that states the resident forfeits the deposit if the resident doesn't fulfill the full length of the lease. The resident also didn't pay the rent, $575, of the last month he occupies the unit and sends me a text saying he thought the deposit would cover the rent. I specifically told him this is not how it works. He moves out and leaves items in the apartment ranging from a whole bed, to dishes, food in the fridge and pantry, posters on the wall and a nasty stove. This resident owes about $737. How should I proceed in this situation? If I use an attorney, the fee will likely eat up the expenses that I'm trying to recoup. Also, how can I do a better job of preventing this in the future?

Sabrina