All Forum Posts by: Shelly Doris Milburn

@Greg H.

Totally agreed that the location counts when discussing obligations for 'disclosure'. I have worked in TX, KS, and MO and totally agree that laws, guidelines, documentation, and typical practice varies quite a bit. 

Your note about FHA appraisal on file for 120 days is an important note as well. The info source I went to states that, "A VA appraisal stays on file with the VA (and therefore "sticks to the house") for a period of 6 months. This would only affect VA loans on your home. FHA also stays with the house for 6 months and only affects FHA buyers."

Those timelines could work for or against a seller based on their objectives. Sometimes, a buyer saving the cost of an appraisal might be what makes the deal work. But, in cases of low appraisal I have seen it work against the seller. I originated VA loans previously and did see some appraisals that sellers considered to be very low - locking them up for a period of time w/potential VA buyers.

My thought was more about the increasing availability of public data and sales data that is accessible online. Some of those resources reference appraisal and mortgage data so if an investor has one done the data may be visible. (not necessarily in a seller disclosure document).

All good food for thought. In any case I would, personally, not obtain a formal appraisal as my method for evaluating the deal.

Agreed on the Realtor suggestion. An appraisal is a fine way to do it but appraisals stick, too. So, if you get one that you don't like it may not benefit you from a disclosure standpoint. Appraisers use recent comparables so those are typically on MLS. Public data is typically easy to access online so even FSBO's can be researched if that is a factor in your area. If you are in relationship with a Realtor and have a saved search setup eventually you could likely ballpark your own numbers.

Have you already completed the BP rental calculator on this one? I agree that the monthly income looks good. Just curious if you are accounting for vacancy and turn over expense assuming student renters would lead to those expenses fairly regularly.

I learned a lot on this one. Wholesaling was very unclear to me previously. Loved the quote he shared about taking care to not be successful at the wrong thing or at something that doesn't matter. I also really appreciated his honesty about how he made some wrong turns in life that landed him in a place where he had to find a way out. The beginning of every story is not magical but can be inspirational. His story is a great example of that.

My very first thought is that you should switch to a vehicle with a lower payment or one you can pay for outright. I, previously, worked as a loan originator and constantly talked to people who could not qualify because of high car payments. Also, where do you live now? If you bought with FHA or USDA loan and lives there you could house hack. No reason you can't refinance into a different loan type in a few years. Doing so will leave you able to get a low down payment home for yourself when you move on to a new personal residence. Make some financial changes so you can get into your first deal. The trade off of launching a life long investing habit is so worth it!

@Linda Weygant - Good point. My statement was an over generalization. If an HOA is legally binding there should be some publicly recorded documents. The basic setup documents as well as a secretary of state filing like an annual notice of a registered agent, board officers, etc. The obligations for filings surely do vary by state or local municipality. Also, the originating documents do govern what subsequent document updates must be filed. Lots of HOA's have websites where documents are posted, too. Disclosure obligations specific to HOA's do vary from state to state. An informed seller, informed agent, or title company/attorney can typically get you some info. But, yes, ultimately there are times (lots of them) where getting the info comes down to how accessible the HOA makes the info. it can be the wild west in some circumstances. I feel that caution and patience is key when purchasing a home that is subject to an association. Particularly if you plan to buy as an investment/rental/fixer upper. Important to go in eyes wide open about rules, regulations, fees, waiting periods, etc.

As always, you could go old school and knock on a neighbors door to see what info they can help with. 

HOA docs are publicly recorded documents. HOA's can tend to be overly protective of them but you can obtain them from the courthouse, etc. seller's can and should provide copies with their property disclosure. Failure or refusal to provide them always makes me think twice...and dig deeper before moving on a deal.

Referrals are definitely always welcome. As a Realtor I know that every contact does not result in a sale. Agents just want the same respect for their time and effort as everyone else does. Referrals, continued business, being straight forward during business dealings, etc. As an investor and property manager I try to communicate w/agents as promptly and professionally as I expect from them. It's all about building a great, professional relationship.

I use buildium and am pretty happy with it. They continue to update it and it becomes better each time. Would welcome the chance to connect with you on BP. Best of luck! SD

Hi! I would welcome the chance to connect with you.