All Forum Posts by: John Vietmeyer

How often do Banks refuse to ratify contracts after a successful auction.com bid?  

Bid was won this week, signed their paper and submitted  earnest money.  They gave me 24 hours, now they say the bank needs ~10 days to review my offer. 

I'll be frustrated if they reject my offer after I already agreed to their terms.  

risky, but I've been doing 24 hours.  Check out at noon, check in at noon.  I do a walk through a week before and talk to tenant about any repairs that may need to be done before they leave.  

Any recommendations on how to collect a deposit from an out of state renter?  

Given timing/convienience I'm thinking an electronic system would be best.  However, Cozy and the other systems seem set up for rent collection, not initial deposit.  

Great discussion.  Anyone else have experience with the "pre-auction bid" on auction.com?

Is the best strategy to wait for the auction?

great advice.  I agree open communications and solving the problem sooner rather than later is the best approach.  Will let it ride for the weekend but will sit down next week.  Appreciate it....

is it sometimes best to cut loses and let a tenant walk from an annual lease?

I had a nice couple sign a year lease.  Subsequently their relationship fell apart and are changing careers.  I now have a single mom desperately trying to keep her head above water.  She has not yet missed a rent payment (have fingers crossed) and is indcating she needs to find cheaper housing. 

Should I let her walk?  I'm thinking it may be better to do so now in summer as opposed to waiting for things to fall apart.  

Is there not a loop hole that allows investors with a small number of properties to be exempt from submitting 1099s?  

Understand, probably should have kept looking for a better investment but at this point I'm in it for the learning.  keeping the property basic, I think I can keep my renovations to $25k. 

Here are a few pics:

good questions. I comfortable that the ARV number. There is another house on the street that is pending and hope that will drive it up a bit.

I received a 1 year interest only portfolio loan from my bank with 20% down, $150 orgionation at prime plus 1.5% (~4.5%). My plan is to refinance to 5 year arm or 30 fix once the renovations are complete.  

I'm closing on my 3rd property, a 1600 sq ft SFH built in 1975. The numbers originally looked great for the growing Charleston SC market, but my repair costs are quickly adding up. Since it is not earning much as a flip, my plan is to rent it for a few years, take the tax break, hope for some appreciation, then sell. The house is in what I'd classify as a B neighborhood consisting of good schools and nicer older homes. The biggest competition after rehab will be new construction developments. Here are my projected numbers

Purchase price: 135k

Renovation budget: 40k (currently)

ARV: 208k

Do any of the following improvements seem extraneous?

1) Scrape popcorn: $2500

2) Add a tankless hot water heater: $2500 (opens closet in house and resolves code issues with existing tank)

3) Pergo XP flooring through all house besides bathrooms.  $5,000 (could go with cheaper laminant and save $1,500)

4) Gut the two small bathrooms $7,000 (Replace bisque jetted bath tub with white standard tub, reframe leaky tile shower, replace vanities/ toilets.)

5) resurface kitchen cabinet doors $1,600

6) granite counter top ~$3,000

7) Remove structural wall separating living rooms $2,000

8) GE appliances $2,200

There is other work to be done (HVAC, foundation, paint etc.) but items above are the ones with potential for cost savings.