All Forum Posts by: Sunil Kurian

@Xavier Paredes Even more of a reason to see an attorney bro. Lol.

@Lance Stokes Also being a long distance investor, I'd say that one of the best things to do is to first establish good local business relationships ....then only do you look for deals in those areas where your relationships can help you.

I feel like I've read too many stories of out of town investors jumping on what they thought was a good deal only to struggle through a tough rehab or even through bad property management. What good is a great deal if you are hundreds of miles away with no trusted support? Instead, if you work the other way around (relationships first then the deals), you put yourself in a position to confidently pursue deals knowing that you already have people on your team who can support your success.

@Clifton Monte I think there is emotional baggage associated with ever renting out a property that was 1) owned by a family member or 2) once my primary resident. The problem in those cases is that it is really hard to make your decision on the property as an investor without feelings getting in the way. It can be done but it makes it hard...and in this case, you'd be setting yourself up for the baggage of both scenarios.

Outside of the family ties...is there a unique return on this property vs any other property out there? For example, if you were to use the same amount of acquisition capital to buy/live anywhere in the country or would you still choose that house? Taking the emotion out of it, if you could use the same capital for an investment house, could you get a better return elsewhere?

My 2 cents: I could be wrong, but from reading your posts it feels like you might ready be trying to talk your way into this situation as being a good investment choice just so you can keep the house in the family. That could indeed be the best choice but just consider - If it's already hard to treat this like an pure investment decision now, think how hard it will be once you get into it....

@Nikki Bai Given the increases in commodities/labor..from a business perspective the 4200 does not sound unreasonable if there is a relevant clause in the contract. That said, I don't think any of us has seen the entire contract so anything written here is just speculative interpretation concerning your legal options. Best bet is to have an attorney look over the contract in its entirety so you can get the best advice. That may cost some money but it may be well worth it to avoid a misstep in the long run.

@Jacob Maes I know that some investors cash flow fine with condos in certain areas but it isn't something I'd be comfortable with because of all of the external factors that could be at play. In between the potential for special assessments, restrictive deeds, nosey HOA boards, and more complicated insurance scenarios...I'd prefer to pay more for a free standing property where none of those things are an issue. (The only thing about HOAs that are "fixed" are the monthly dues and even those may be subject to revision annually.)

Again, there is definitely money to be made on condos if you find the right area/deal...but I'd just rather look elsewhere.

@Destry Brink If I were you I'd use the next 9 months to run my numbers and build my "buy box". Study what areas appeal to you, the type of properties you like It, and play with what tyoe of Financials it would take to reach your desired yield. I'd also take time to develop relationships with multiple lenders, realtors, and property managers in the area to not only make connections...but have them stress test your ideas a bit and guide you... Do that and you'll be ready to jump next summer because you will recognize a great deal when you see it and will have the knowledge and connections to execute.

@Chris M. The right buyer's agent is going to be one whose value is displayed in helping you achieve your end goals. As someone else said earlier, if at the end of the day you end up getting the house you want at the price you want to pay....why do you care if the realtor representing you gets paid by the seller?

@Alex Monaco

Some of this is a question of priorities.. How do you value your time? If the highest and best use of your time is achieved by working a W2 job, another money generating activity, or in leisure...then by all means hire help in the form of a PM to take the management task off of your plate

On the other hand, if retaining the 8-12% to be paid for help is more important than other activities...then you probably want to figure out how to manage it yourself.

There is no right or wrong answer. Just make sure that you conyinue to acquire and manage your investments consistent with your priorities.

@E.S. Burrell If you say he is an excellent tenant, then why wouldn't you want to have him at your other property? I get that you don't want to have to do a "turn" of the property they are in currently... but the fact is that he might already be looking so you may be losing him to another landlord/property any way... Why not have him take your other place and keep his checks coming in?

Seems to me that it is entirely in your power to only have to look for 1 new tenant vs 2...