All Forum Posts by: Shaun Hunt

Great advice!

 Yes, the joys. :) I have tentatively scheduled an appointment for Friday with a lawyer. I was hoping to never have to do that.

As of right now, the seller has calmed down a bit after I shared a few things off of this post.

This has been great!  I will keep you informed. I appreciate everyone's comments!

Will do.  I just spoke with a local real estate lawyer and sent him the purchase contract.  I will meet with him this Friday, if needed.

I am sure this isn't the first time that this has happened.  Without saying too much, in writing, I would be willing feel better about dropping the house and going for the next one, if it wasn't because they found out they could get more money by relisting the property.

The seller had it listed for $160K, then reduced it to $154K on a local Facebook real estate blog.  The listed it as "MOTIVATED SELLER," I met with them and offered $140K, we settled on $145K.  I told seller I could put $20K down, we settled on a minuscule escrow about, $300, since it would close before the end of February.

In the meantime, the property that the seller was going to purchase went up in value, and housing costs went up a bit, like they always do.  I don't think that is my problem.

I sure appreciate the quick responses.  I'll tell you, I got a little flustered after reading the seller's text and spending a few minutes speaking with the him/her on the phone.

We are using the following purchase agreement:

http://realestate.utah.gov/forms/REPC_2008.pdf

The seller said the contract would be canceled because of 24 (c). The appraiser has been backed up and is very slow, but after the phone call with seller, I found that it was completed and signed on the deadline day, Feb. 22nd.

After receiving information that the appraisal did meet deadline, I sent the seller the following text:

"Good news, I found out that the appraisal is in the hands of my mortgage company, it did meet the deadline of the 22nd and we will close on or before the 29th."

During my lunch break, I called to clarify a few things with my mortgage guy, I called a Realtor about an unrelated property that I wanted info on and then asked him about the Utah Real Estate Purchase Contract and asked about a lawyer.

I guess in the meantime, the seller called my mortgage guy asking if it was true that we met the deadline. She was told that we had. She went from 0-60 about how she could relist the property for more money than than for which the contract was written.  He explained that we are good to go and ended the conversation. We'll see how this ends up.

Here is the kicker, for all of the contract time, up until this morning, the seller wanted to sell me the house and then rent it, below market value, until their new house was built.  How awkward is this going to be?  

I really hate confrontation, if I didn't have so much invested, I would probably just let it go. However, I have TE, I drew $40K from a HELOC for the down, I have insurance ready to go, a $600 appraisal was completed, a home inspection was completed and several other things. This is why I asked for help from the Bigger Pocket Community.

Thanks again for your help, we'll see how the next few days play out.

I have a For Sale By Owner house under contract. The closing deadline is February 29th, which is this Monday.  I received a text this morning saying:

 "After a lot of thought and discussion the past few days, my husband and I have decided to relist the house. Thank you for your understanding in that we are trying to and going to do what is best for our family.

There has been no indication for the past month that this was going to happen. The appraisal has already been submitted to mortgage guys.  The seller thought we missed the deadline of Feb. 22, which we didn't.  The seller wants to relist it for 15-20,000 more than what we have it under contract for.

I have already placed earnest money down on the home.  I have already made plans as to what to do with the property.

Should I just walk away and take it on the chin?

What are my options? If they don't show up at closing and just relist the property due to some technicality, which I can't see there is one, what can I do other than lawyer up?

Thanks in advance.

Thanks @Bryon Otteson. I guess i can lock two, out of the three, and leave the third available for #7 property. I'm thinking if I can acquire 94 more homes, I can semi-retire. :)

As of now, I owe $70,000 plus a $43,000 HELOC on my primary.

I owe $52,000 plus a $50,000 HELOC on rental #1

I owe $70,000 on rental #2 and have a $76,000 untapped HELOC.

I owe $90,000 on rental #3 without a HELOC.

I owe $96,000 on rental #4 that I have a lease option due in 1.3 years at $165,000.

I will acquire rental #5 within the next three weeks. I will owe $108,000 plus I will use $45,000 of a HELOC as down payment.

The HELOCS are interest only. I pay a few hundred dollars a month on those.

My question is, Is now the time to refinance in order the get a lower fixed interest rate on my primary home and rental #1?

Here is what I see happening. The monthly payment will be higher, eating into my cash flow. My thoughts are to keep it the way that I have it now and not refinance. I will pay down the HELOCS over the next two years. I will use the proceedes from rental #4 to also pay down the HELOCS whenever tenant decides to buy the property, hopefully within 1.3 years. I will risk rates jumping between 5-12%. 

Is there someone that can talk me out of this or help me decide the best game plan? We can text, talk or blog. :)

I believe I can stay diciplined enough to make extra payments without having to refinance. Rates with HELOC are variable and are currently at 5.5%.

Thanks in advance

Shaun, Rookie Investor.

As of now, I owe $70,000 plus a $43,000 HELOC on my primary.

I owe $52,000 plus a $50,000 HELOC on rental #1

I owe $70,000 on rental #2 and have a $76,000 untapped HELOC.

I owe $90,000 on rental #3 without a HELOC.

I owe $96,000 on rental #4 that i have a lease option due in 1.3 years at $165,000.

I will acquire rental #5 within the next three weeks. I will owe $108,000 plus I will use $45,000 of a HELOC as down payment.

The HELOCS are interest only. I pay a few hundred dollars a month on those.

My question is, Is now the time to refinance in order the get a lower fixed interest rate on my primary home and rental #1?

Here is what I see happening. The monthly payment will be higher, eating into my cash flow. My thoughts are to keep it the way that I have it now and not refinance. I will pay down the HELOCS over the next two years. I will risk rates jumping between 5-12%. 

Is there someone that can talk me out of this or help me decide the best game plan? We can text, talk or blog. :)

I believe I can stay diciplined enough to make extra payments without having to refinance. Rates with HELOC are variable and are currently at 5.5%.

Thanks in advanc!

Shaun, Rookie Investor.

Hey Jean, first of all, how do I "tag?" I tried @Jean G. But that doesn't seem to work.

Short story, walk away.

Long story,

I just bought a house in April. It was in fair condition. I replaced windows, carpet, painted both inside and out, replaced two sinks, installed sprinkler system with 1500 sq ft of additional grass, replaced base board and a few other things. Rehab costs were right around $15-18,000.  My guess is that you would spend that much, or double, just on the worst of the four doors. 

I should have taken more pictures, but just looking at it convinced "me" not to do it, as mentioned before. The area is neither A or B, in my opinion and is closser to C- or D+.

If you kept the rent at $600/door for three doors, and if they were made safe to live in, and if you could have no more than $120,000 invested, it might work. Houses for $600 or less are getting hard to find.

I would rent this place to dog owners and smokers. They have a real hard time finding places in Cedar. I wouldn't be too tough on background test either, just have a solid contract. I am sure someone would rent the bad place after minimal repair for $4-500 per month.

If you trust your contractor, and he thinks you should do it, then go for it. My hold up is that I try to do 80% of the repairs myself and this project was above my skill level by a lot.

There are a few more fourplexes i. This area that are heavily compromised due to the same issue.

If you plan on selling this place within a few years, you will have to disclose all of the repairs, etc. that will chase some buyers away.

Hopfully, that helps. To to profound. :)