All Forum Posts by: Steve S.

@Siler Coggins

I have a feeling this individual, (unless they have some deficiencies) does not have a bank account for a good reason. There are a ton of reason why a person may be "off the grid" so to speak, But if they're a good tenant otherwise I'd do my best to create a "work-around" 

@Account Closed I apologize only by re-reading this thread did I understand the context. I would say you might be in a tough spot for a bit. Usually even to get a hard money loan they want you to have some skin in the game. So you're going to have to be creative to figure out how you can get that down payment. It may mean that you work with tighter margins and pay someone out who helps you with the financing.... I dunno.. but now at least you have the blue print I use for success.

Talk to a mortgage broker. I currently love a product up here in Canada by Scotia bank called "one step"

Let's say I purchase a property for 100K. With 20% down I will need a mortgage for 80K.  I not only get approved for the initial 80K but they open up the mortgage and say that after an appraisal they will allow the mortgage to be for "X" amount.. for this scenario lets say it's up to 145K.

Buying the property I already need an appraiser to assess the property value. I talk with him/her and ask them after they have written up the appraisal, and say... okay so you say based on the condition and comps this property is worth 100K what in your opinion will I need to do to this property to get it to (x amount) usually equal to current purchase price plus budget plus a minimum of 25% more.

.

ie: purchase at 100K

20K down payment

80 K mortgage

Renovation cost of 15K

100 + 15 = 115 x 1.25 =  144K

This means I can now open up the back end of the mortgage product for the 144K and extract my full down payment and reno costs. I'm literally into the property for nothing, and as long as the rent is greater than the expenses it's cash flowing well in my opinion and worth it to do the work!

You have no experience.. no track record.. no portfolio and you have nothing invested in the property yourself?

You get points for finding a great property in a great location but after that I'm afraid your chances may be slim to none and slim is already walking out the door.

If the property is as great as you say it is, liquidate everything you have and flip this property there's a large return in it for you. If you have absolutely no assets, you're either going to sit on the sidelines and watch this deal pass you by with regret, or perhaps you could bird dog this off and try and get a commission, and perhaps even a wage for your next gem as you rehab this house for someone else.

I should note that there's differences in vinyl plank... look for a mid-commercial grade. 

Talk to your banking institution... I just arranged my bank to set up a direct deposit system with one of my tenants. The banks will do the paperwork. Basically my bank will take the funds directly from my tenants bank account on the agreed upon date. It's super easy and convenient!

Your business is that you provide safe housing to another person for a fee (rent). When your unit needs improvements the onus is on you to decide if that's something that needs to be done or work that you want to do.

Do not let your tenant run your business! I think it's great that they have indicated an area of concern that needs attention. In my opinion you want a tenant that wants the place kept in good standing. But do not mix your tenant in your business! $8 Tube of caulking and 10 minutes of time and you will both be left arguing over value and time versus money. Either just do the work yourself or get someone knowledgeable to do the work.

By profession I'm a teacher. In Canada it's a very well paying job with great benefits and retirement fund. Because of that I'm happier to be a little more risky with my investments.

Best advice I have for you is in the youtube link below.

https://www.youtube.com/watch?v=-PdjNJz7B1Q

Pick two of the three  at best..

You can get things done well

you can get things done cheap

you can get things done fast.

He has one leg which means he may do things a little slower. That doesn't mean he isn't skilled or qualified to do the job. But it's simple. Vett him like you would any other person that you would come in and do the job. Does he come recommended, or have any references. How physically capable are you? You're going to be doing this together, sounds like he knows what he is doing but you'll be doing the muscle work. Which isn't a bad thing you'll get the best seat in the house to learn something if this guy cuts the mustard. 

On a side note for carpentry work I pay my guys $25/hr to be by my side or $35 on their own but I have expectations and know if a guy has skills or can just talk the talk.

Just get the vinyl planks and put  your head to rest. I can't talk enough about this type of flooring it is by FAR the best type of flooring. You can have really high end looks and finishes that are mid-commercial grade durability.

You have pets... get the planks you won't have to worry about stains or wear. You're planning on turning this into a rental.. best stuff to have! Super easy to install as well! 1 day  to remove the furniture and carpet, and 1 day to install. One can easily do between 500 and 600 sq ft in one day once you get rolling.