All Forum Posts by: Sergey A. Petrov

If the property was purchased in 2016, it should generally be ok to convert it to a rental while still complying with the loan requirements. Do talk to your insurance agent/broker about all the different options and endorsements available on the policy and them decide which risks you want to insure against by buying insurance or taking the risk and paying out of pocket should an uninsured event occur

April and June aren’t great comps. I am not familiar with the market you are in but everything has softened since Apr and Jun in just about every market. Don’t worry too much about the “discount” you may or may not be getting unless you plan on flipping soon. As long as the deal makes sense based on your purchase  price go for it. Will you see a better “deal” next month? Maybe. Will your property appreciate 10% next month? Maybe. No crystal balls here. Buy and hold as long as it makes sense 

 I did just that after an offer followed by a counter offer and a counter to the counter. The seller was the one to reach out to me just this week after having dropped their price slightly below my final offer. A bit too late as I’ve moved on and went under contract on two other properties in the meantime 

Refinance it. Tell your lender you are doing so. A foreclosure, even if promptly started at the 30 day mark (unlikely) will take a few months. You have time to refi out of it

I am not too familiar with the intricacies of credit reporting but paying yourself certainly doesn’t fit any common sense definition of one’s credit strength. If you were a lender and I came to you and said “look I’ve consistently transferred $1k from my checking account to my savings account on time, once a month, for the last seven years. That was my rent, I am a good credit risk, so you should lend me money” what would your response be?

Uphill battle unless it is a small lender with more flexibility and you are working with a portfolio loan/mortgage 

Run the numbers (and comps) both ways - rehab (cost of same and market value once done) and demo and build new (same thing - cost to demo and build and market value once done) and see where you come out. Be careful not to overdo it which a lot of people do. The quality of the rehab (or a new build) should fit with the neighborhood. Gold plated countertops make sense in some neighborhoods and laminate countertops make sense in other areas

Well in that case, the decision is easy - request a price reduction and if the bank says no, move on to the next deal. Or negotiate whatever makes sense

As the owner you should know whether or not it is your fence, your neighbor's or the HOA's. Presumably your manager already did all that work and determined it would be best to replace (and that it is yours), obtained a proposal from a trusted provider and sent to you for approval because it exceeds their approving authority in the contract. You are making them chase their tails and do extra unnecessary work (likely without additional compensation). Sounds like you are either uncomfortable with the work (or don't want to spend the money?) or there is lack of trust in your manager. All that said, there is no excuse for their lack of an explanation or prompt response. Call your manager. A 5 minute call will cover the next 20 emails you'll exchange with them.

Curious what the cost is. I have a $5k cap in my agreements and my managers know not to call me for anything below that. And know I’ll back up their decision for higher amounts without my express approval if needed. But I have a high level of trust and confidence in whoever I work with. The second the trust disappears I either “fix it” or switch providers. “Fixing it” works 90% of the time and most of my business relationships are well over a decade old 

The question is does the deal still make sense and/or can you find a better deal? If flipping, do you really need to get a new unit? If keeping and either renting or owner occupying, spread the cost of that HVAC unit over it’s useful life account for maintenance you would’ve had to do on an old unit (this property or another) and see if it is worth it. I think you’ll find it makes sense from a long term perspective