All Forum Posts by: Shalanna L. Pirtle

Agreed with all of the above. I would not advise YOU responding to the lawyer at all, but you should retain counsel who will do so on your behalf. You should also think about how much you are willing to spend on costs of defense. If they do file a court action and you choose to fight it, this will not be cheap. 

@Curtis Waters - agent;

@Gerald Pratt - wholesaler. 

@Rafael Rodriguez So, to answer your question...possibly. This is a VERY cursory look but I took the monthly NOI you gave of $750/mo, which is $9K per year, and divided that by your purchase price of $239,000. That gets you a CAP Rate of 3.7%. Now my math could be wrong and I welcome any corrections!

I'm sure you know CAP Rate is not the only way to analyze how well a property performs, but it is commonly used to give an investor a quick comparison of the rate of return on his/her investment. So, if looking at it that way, what else could you have done with that same $239K for a higher rate of return? I know a group of investors that won't touch anything below 10% CAP and there are others who are good with 5%and above depending on the market because they buy for appreciation, not for cash flow. Not sure what your goals are. Other things to think about - is the property already performing to market, meaning can the rents be increased, can the property be improved to command higher rents, etc.?

I welcome additional perspectives. @Patrick Liska care to weigh in?

@Rafael Rodriguez congrats on your first deal! However, we can't begin to help you analyze without knowing details about the property, including:

What you paid?

The amount the unit has rented for in the past/is currently renting for now?

Market rent in the area?

Net operating income?

Sales comps in the area?

Value of deferred maintenance for which you are now on the hook?

I'm sure I forgot something that somebody else will weigh in with??

@Charles Bright, are you connected to some local REIAs? There you can connect with folks who you may be able to partner with on a deal so you don't have to bring as much to the table. You will also find private lenders (or folks who know them) who need and want to do something with their cash. You can create real synergies with folks if you develop relationships with folks and demonstrate yourself as trustworthy and a good person to do business with. 

Good luck!

@Jiri Vetyska - you are correct. I've looked further into the numbers and renting my primary is not the way to go, ESPECIALLY in this market because rents are so high. I've since talked to the lender and can actually make something work now with the money I already have for a down payment. Very excited about that. 

@Alan Grobmeier - would be nice to be in your situation! Could use that money on the purchase of 2 to 3 SFH's (depending on the market) or as a down payment on a small to medium multi. Alas, I will NOT be seeing that type of gain.

@Gia Hughes - hate that you're underwater. I now have real clarity about a move and that is what makes sense for me. I look forward to updating the thread soon!

Great thoughts Chris T. I had contemplated a move around the time of the last refi but wound up not for other reasons. I'll report back soon, stay tuned!

Not surprised to see this development here given the same trend in employment law over the last 3 to 5 years. There has been a movement to "ban the box" (prohibiting the ask of criminal history) on employment applications for some time, particularly where folks were being passed over for jobs on the basis of an arrest alone even though the underlying charges were dropped. Unfortunately, minorities with criminal histories are frequently discriminated against 3x (or more) than their non-Minority counterparts. Rightly or wrongly, The administration felt like it had it to intervene. It remains to be seen whether the "fix" is an overrreach. However, as mentioned above, and just as in the employment context, landlords will likely be best-served by "papering the file" - if you are going to make a decision not to rent based on criminal history, you will need to show you did an individual assessment of the conviction at issue and have some rationale for not renting..

@Seth Ellis, re: attorneys, I can assist for anything other than criminal, family and residential real estate and can make tons of referrals for anything specific in which we don't have the expertise. For residential real estate, I'm personally vetting a couple different folks and will be happy to pass them on thereafter. Others might have other names.