All Forum Posts by: Sejin Kim

Quote from @James Mc Ree:

Contact the HOA yourself. See if they will give you an estimate of the assessment for the property. They might refuse since you are not the owner. In that case, get the seller to call. Ideally, you want something in writing, but that is probably unlikely since no one will want to stand behind a not-yet-final number. You should be able to get something like the assessment will not exceed X.

As to the negotiation with the Seller, what are you willing to accept for the assessment? You could agree with the Seller that you will accept up to $10,000 in the special assessment and the seller covers the remainder. Is that still a good deal for you? What if it is $30k? Check your model to see what works and how much you are willing to accept.

Also HOA don't have budget for 2025. Do you think this is Red flag?

Quote from @James Mc Ree:

Contact the HOA yourself. See if they will give you an estimate of the assessment for the property. They might refuse since you are not the owner. In that case, get the seller to call. Ideally, you want something in writing, but that is probably unlikely since no one will want to stand behind a not-yet-final number. You should be able to get something like the assessment will not exceed X.

As to the negotiation with the Seller, what are you willing to accept for the assessment? You could agree with the Seller that you will accept up to $10,000 in the special assessment and the seller covers the remainder. Is that still a good deal for you? What if it is $30k? Check your model to see what works and how much you are willing to accept.

Thank you James! 

Hello, 

we are middle of purchasing our 2nd property. It will be our investment property. Tenant already there until Oct. This year. 

But my realtor said they are going to do special assessment on this property and HOA runs badly. ( We requested HOA reserve document but no answers. )

We wanted to wait to see how special assessment going and close. 

Now seller says they don't know when special assessment will be done so he rather want us to close end of January or back out. 

My realtor doesnt recommend buying this due to special assement unknown and HOA runs badly.

However we are buyiny with good price. 

What do you guys think?

We really want to wait until HOA done special assessment.

Property is 1 bed condo, First floor, build in 1993 and we are buying at 130K in Florida. 

Thanks.

Hello, 

we are just starting out our investment journey. 

we have one STR property and 1 LT property and I want to gain more knowledge of it.

Any recommendations on real estate investing course or classes? 

Not free ones but not too expensive ones as well.. 

Thank you so much!

Quote from @Trent Reeve:

there are no mountains  near Disney

Corrected.  I guess it's forest view? 

Hello, 

we are trying to buy our 2nd STR property in Kissimmee/Orlando area.

we currently have 1 bed/1 bath condo in Kissimmee and it is doing well so far. ( been 2 month) 

I am wondering anyone has 2 bed 1 bath property? How's it going? 

I am debating should I buy 2 bed 2 bath condo or 2 bed 1 bath will work as 2 bed/2.bath. 

current 2 bed 1 bath we want to phrachse, is on good location. Near Disney and has mountain view which gives privacy. Whereas little far from amenities like pool or gym. 

What do you guys think? 

Thank you so much for your opinion 

!

Quote from @January Johnson:

Quote from @Sejin Kim:

Hello, 

we decided to sell our short term rental property in Sacramento area. 

what will be pros and cons of selling without a realtor? 

we had that property under 2 years and we pay a lot of mortgage. 

If we hire a realtor, we will be paying more than we get from selling it. 

House already has smart lock, clean... Will it be too hard to sell without realtor? Too much work? 

Any opinions? 

Save your money on the listing and pay a flat-fee listing agent to put it in MLS (WITH PROFESSIONAL PHOTOS AND A GOOD AND ACCURATE DESCRIPTION) and then pay 3% to the agent who brings you a buyer.

 Thank you. 

so far no luck. We hired realtor who is also property manager. 

Hello, 

we decided to sell our short term rental property in Sacramento area. 

what will be pros and cons of selling without a realtor? 

we had that property under 2 years and we pay a lot of mortgage. 

If we hire a realtor, we will be paying more than we get from selling it. 

House already has smart lock, clean... Will it be too hard to sell without realtor? Too much work? 

Any opinions? 

Quote from @Randall Alan:

Quote from @Sejin Kim:

Hello biggerpockets! 

I don't know what to do with my property. 

I and my husband bought our first house in October 2022 when there's a lot of changes in interest rate. ( 5.5 % with VA roan? 5 bed 3 bath house )

For unexpected changes, we couldn't afford mortgage, we rented as Short term rental. 

Luckily my house has swimming pool, spa and it is very specious, surprisingly it was very popular. Even though we were nor in tourist place, house seems almost more than 50% occupancy rate except winter. ( In winter we had mid term tenants) 

However, even though our property is popular, because we pay a lot in mortgage, many times it is negative cash flow and pool seems constantly leaking. We had to put temporary line, it costed $600, and I don't know how much it will cost when we do permanent repair. Also sprinkler breaks, we had to repair... 

At that moment we started to rent, we thought that's the best option for us. 

When we bought a house we were first time home buyer, so we didnt have a lot of knowldge, and we didnt know how to negotiate. ( Realtor didnt really help to negotiate, and lessson learned. ) 

We don't have a lot of equity in it. 

Probably we will lose money when we sell.. 

Also, even though we make negative cash flow, since its big house and income from house is a lot we had to pay more taxes. 

So at this moment, I am not sure if we should continue to airbnb. 

With long term rental, we coulnt cover mortgage at all, with short term rental, there was possibility to cover mortgage ans sometimes it did. 

My husband wants to wait until interest rate goes to down so we can finance but I am not sure if it will ever happen... 

Thanks for reading and any comment will be appreciated. :)

@

@Sejin Kim

Many of the things you describe are completely normal.  Repairs happen, and must be done.  You don't say what changed to make the house unaffordable... I'm going to guess loss of income on some level.  At that point you pivoted to AirBnB, and you say that is sometimes covering the mortgage.

I personally don't see a reason to stay in the house.  Even with renting it out, you sound frequently upside down.  As for mortgage rates coming to the rescue... I would suggest you can expect mortgage rates to drop by a quarter of a point at a time (when the Fed meets)... and the way it's looking, probably not starting until 2025.  Point being - it will take the better part of 2 years before you would likely get to a rate where it made sense to refinance (where your new rate was say 1 1/2 to 2 points lower than what you have now.  And even when you do refinance - it will take a year or more to recover the costs associated with the refinance (the closing costs they charge for the refi).  So to me, the refi seems a ways off and probably isn't good justification to hang onto the property. 

Options you might think through would be appreciation - is your area / property  appreciating to where it might make sense to hold onto the property for it to build value.  This can be directly offset by how much you are having to put into the property though.  So that is a question you have to evaluate.

I think I would probably cut my losses and buy into a more affordable house for yourself. 

My 2 cents.

Randy

Thanks Allan. 

Yes, income changed. Currently we live in the apartment and we are renting out whole house. 

Yes, it is good area so I think it will appreciate, just we already bought with high price so not sure how much appreciated. 


I am going toward keeping the property for now expecting appreciation and refi. 

thanks.  

Hello biggerpockets! 

I don't know what to do with my property. 

I and my husband bought our first house in October 2022 when there's a lot of changes in interest rate. ( 5.5 % with VA roan? 5 bed 3 bath house )

For unexpected changes, we couldn't afford mortgage, we rented as Short term rental. 

Luckily my house has swimming pool, spa and it is very specious, surprisingly it was very popular. Even though we were nor in tourist place, house seems almost more than 50% occupancy rate except winter. ( In winter we had mid term tenants) 

However, even though our property is popular, because we pay a lot in mortgage, many times it is negative cash flow and pool seems constantly leaking. We had to put temporary line, it costed $600, and I don't know how much it will cost when we do permanent repair. Also sprinkler breaks, we had to repair... 

At that moment we started to rent, we thought that's the best option for us. 

When we bought a house we were first time home buyer, so we didnt have a lot of knowldge, and we didnt know how to negotiate. ( Realtor didnt really help to negotiate, and lessson learned. ) 

We don't have a lot of equity in it. 

Probably we will lose money when we sell.. 

Also, even though we make negative cash flow, since its big house and income from house is a lot we had to pay more taxes. 

So at this moment, I am not sure if we should continue to airbnb. 

With long term rental, we coulnt cover mortgage at all, with short term rental, there was possibility to cover mortgage ans sometimes it did. 

My husband wants to wait until interest rate goes to down so we can finance but I am not sure if it will ever happen... 

Thanks for reading and any comment will be appreciated. :)