All Forum Posts by: Thomas B.

In the end isn't this still just a lease with an option to buy at the end of 36 months? Seems to me that would still go against the HOA rules, IF they look into it you could have issues. If it's not you will have to look at the due on sale issue as stated above by Dewayne Gammel. As for the deal itself, I would worry about a $5,000 deposit on a big home. If they do not buy the house at the end of the 36 months you would more than likely have to paint everything and do repairs well in excess of $5,000 for normal ware and tare to bring it to marketable standards and your in the same position just 3 years down the road. Who knows what will the market look like then.

Why do you think the house isn't moving? If it is priced $150K under market it should move. 

Does anyone have a good tile guy they can recommend in the Memphis area? My last tile guy retired and I have a project in the works now. Any help or information would be greatly appreciated.

As stated several times by several other people you have no free time in the house the lease is still valid. While you say the new owners don't have a copy of the lease you also say they are personal friend. If that's true and they are working together they have a copy of the lease or will get one.

That being said the new lease they want you to sign should have the same terms as the lease you hold only changing where the payment goes. If they try to change anything you rant comfortable with don't sign it and go to legal aid or a private attorney.

As for an additional security deposit they may ask for it but I don't see where you would be legally required to pay one. The way I see it, current owner accepted the risk when they bought the property the way they did.

We will agree to disagree but the previous owner didn't get a free ride and will have consequences to pay.

Is the man you spoke to an attorney or a government employ that would have no skin in the game if it all went wrong? In to days society when a problem comes up the lawyers come out and if one of your introductions goes wrong or the property has a Magee fault they could be coming after you. Let me put it this way. Run down to the nearest DMV and try to get tags or a license. Once you are through with that process let me know if you would want to put you future in a government employs hands.

What makes it look like a shaky deal (I don’t want to say bad) is the additional variable of the bank calling the loan and adding expenses to the deal when it already seems thin.

If the lender enforces the DOS, and calls loan for the violation what do you have. If you have rehabbed the house, and they let the bank foreclose, you're out all of your cost for repairs. That's the part of this that would keep me up at night. If you are forced to buy the house to avoid it being foreclosed you have more expenses.

How big is this house and are you going to be doing all the work yourself? $5500 sounds like it could be very low for a house that has been vacant for 7 - 8 years.

@Ben Bakhshi I would stay away from credit cards for the very reason I use them. Most if not all credit cards these days have very user friendly buy protection plans and I have seen them hold funds for bogus claims. I would not put it past them to freeze your account or withhold funds if one of their clients said, the stove stopped working and you wouldn't fix it. Doesn't matter if it was ever broken you still have to prove "their customer" was wrong or lying.

I don't know that you would want a water based fire suppression system in a kitchen. Grease fires and water don't mix well and if the tenant is in the area when it goes off they could be injured. Then come the lawyers! Just my 2 cents.

Hello,

I haven't been on the forum long, and this is my first post, but being a Memphis investor myself I would have to say Memphis is still a good place to invest. However, Memphis has a lot of bad areas scattered through out even in the best of zip codes and the tenant pool can be difficult to qualify depending on your standards.