All Forum Posts by: Sarah McCluskey

@Misael Carlos Vera

Call around to small community banks. Many will lend to LLCs with residential mortgages. Big banks for sure won’t.

@Misael Carlos Vera

I have personally been sued on a property one year after I sold it. The lawsuit had no validity, yet they found a snakey lawyer willing to put it through, knowing it would cost us more to fight it than to just settle. Insurance wouldn’t cover it because they put “fraud” in the lawsuit....even though they had nothing to back up the suit, it cost us $7k in legal fees just trying to get insurance to cover us, responding to the suit etc. and another $5k to settle. It would’ve easily cost us $20k minimum to take it to court, even if we won, which I was confident we would.

From my experience, and talking to many many lawyers on the matter, there are too many people out there that use frivolous lawsuits to extort people for money, because it’s always cheaper to settle with them than to fight in court.

For that reason, I will always use LLCs.

@Giancarlo Orozco thanks for the comment! I think I’m just getting hung up on feeling like I always need to walk in with a ton of equity for it to be a good deal, but I really do think long term buy and hold this is a good opportunity :-)

@Enrico Mariani thanks for the advice!

@Kai Van Leuven thank you!!! This is great advice :-)

@Jonathan Hulen

One unit from what I can see in last years pictures just needs some fresh paint and maybe updated floors. The other unit I have no visibility to yet, so it may need more work. I am in southeastern wisconsin.

@Mark H. Porter makes sense. The tricky part here is this was a direct mail campaign and they weren't really looking to sell, so not motivated at all. They'd part with it for about $10k under what it would go for on the MLS, but not much more than that. So, I have to decide if it's worth it At the current price for the future cash flow vs. the current cash flow.

@Ned J. Thank you for sharing! Definitely a valid point. I can only see one unit right now because it was listed for rent a year ago. It’s in line with the quality of the other units in the area going for much higher.

The curve ball could be the unit where the tenant has been there 8 years. I’m sure it would need some updating.

@Alex Heidenreich thanks for sharing!! I like that approach.

@Darius Ogloza great point. I’m just getting hung up on such a low initial cash on cash return.