All Forum Posts by: Stephen J Davis

Why is the current owner not evicting them already? The only reason not to evict would be if they lost their jobs directly as a result of Covid and they can prove it. If not, have the current owner evict them before you close. If that is the case, I would go ahead and close as long as the deal is not negative cash flow and the price is right. 

This appears to be a full price deal or higher. I have never bought a property at full price. You should make money the day you buy real estate. Then you want no less than a 15% cash on cash rate of return based on the cash flow. I would also wait for a deal with 15% or more equity the day you buy it. Not a deal to me. Plus, you have to do all of the work to get the rents up to what they should be. 

No need to refinance. Make sure that your renters have content insurance.

Screen your tenants properly and you will probably not have a problem. Talk to the present landlord and 1 previous landlord to determine if they take care of the property or not. Don't forget to run a credit and criminal report as well. Then, go over the care of wood floors with them, put instructions in the special provisions and have them initial them. Take a lot of photos before they move in. Have your AC guy inspect twice a year when they do the HVAC check ups in spring and fall.

I would read the PM agreement and honor it as a rule but not renew it. I would not just fire them without having an attorney advise you.

Make sure that you have a solid contract on the property. Join a local real estate investor group to build your buyers list. I never had a buyer go around me because they did not want to ruin their reputation at the club. If you just have a bunch of random people on your list, you are more likely to have a problem.

It is all about the comps. Then, don't get greedy. Go with the average and get it leased ASAP. Most price their house at the top and it goes vacant for a month longer than necessary due to the higher price. If your rent was $100 higher than the average, you lost more than that by losing that month.

Call the judge for that subdivision and ask his policy. After eviction you just put it on the street. It will disappear very quickly.

I think you are right but I am not an attorney. Go spend a couple of hundred on an attorney to answer this question. A forum is not the place for legal questions like this. Good luck and if you can't wholesale, move to flipping. Don't give up.

Join a local real estate investor club to find them. That is what we do.