All Forum Posts by: Taylor Cameron

Hello everyone. Looking for some opinions on what to do with this deal. I will most likely be occupying one of the units at least for a little while. My main goal is to house hack and make my monthly expenses as low as possible. My question with this deal is should I close asap or not?

Details

Arbitration deal w/option to close whenever within 6 years at the pre-agreed purchase price. The monthly payment to the seller would be $1,200 while the total rents are $1,700. Gives me a "cash flow" of $500. However, if I lived in the units, the total rental income would equal $850 leaving me with a monthly payment of $350. None of my monthly payments to the seller would go toward equity or a down payment.

OR

Close directly with a low down payment (5%) making my total monthly expenses (PITI) $1,300. Bringing my out-of-pocket expenses to $450/month. I am not opposed to the arbitration option but would prefer the deal to be structured more like a rent-to-own where I would build some equity.

Any thoughts are appreciated!

Do I need the new tenant to sign the original lease or just the addendum that stats they agree to terms of the original lease? 

what happens to the security deposit?

Thank you @Account Closed!

Appreciate the feedback. This is pretty much the same thought process I have had. I have been very clear with them since this all started. These were inherited tenants and they have been living in the apartment for 2 years.

Both person B and C have reiterated that person C will not be moving in. It makes me wonder why they want to be on the lease. But, I guess,  it does benefit me to have them on the lease.

Thank you for the release form. Is there also a form for adding a tenant to a lease?  

Hello everyone -

Any help with this situation would be appreciated!

I have two tenants (person A and person B) who both just signed a new year lease in November. They have decided to separate. Person A wants to move out and have their name removed from the lease. Person B has a family and wants to stay AND add person C to the lease to help with rent so the family has some stability and doesn't need to move. Person B does have a history with Person C. It does not appear at this point person C will be moving in. However, I have asked multiple times to both of them and yes, they would like person C added to the lease. 

I am working through this and will qualify person C as I would any person. If they qualify, I will add them to the lease and we will move forward. 

If they do qualify...

What paperwork do I need to a) remove a person from the lease and b) add a new person to the lease?

If they don't qualify...

what are my options? Hope person B can continue paying rent? Switch to a month to month lease? 

Any advice or suggestions are appreciated. Thanks! 

Hi everyone - 

I’m closing my first deal and it’s an off market deal. So I’m just looking for advice from someone who has done it before. I know basically everything can be negotiated but how does it normally go? Who covers the costs? I’m willing to waive the inspection. What other contingencies should I be aware of? Any help is appreciated! 

Thanks 

@Mike Lambert Yes, I agree with you. Short-term rentals are the way to go. Why do you prefer the west of Marbella? Less competition? Lower barrier of entry? I have spent most of my time between Marbella, Malaga city, and the villages in between. I still think these are good places to invest. Not necessarily for the city but, as you mentioned for the beach and golf. In these places, it's just much more competitive and the prices are much higher. 
What I was referring to as the MLS was each individual realtors' listings on their website but also on Idealista and fotocasa. Obviously here you're paying the market price. There are hundreds if not thousands of agents and agencies (at least it seems). So your advice would be to talk to as many as I can and just see what I can find?

@Erwin Groenendijk If you don't mind me asking, what is the yield you look for when buying a property? Seems in Spain anything 7-8% is good. 

@Javier De la Rosa Thanks!

@Erwin Groenendijk Yes, I think that's a good idea. My thought was to start with something a little less risky (longer-term rental) because with short-term rentals you obviously have a risk of vacancy every once in a while but on the flip side of the coin, it can be a great source of cash flow. Especially not with travel starting to come back. Probably not as risky as I'm making it seem in my head. 

@Javier De la Rosa Thanks for the recommendation. Do you know the link to their website? I type in Vacation Rental Marbella and about a million different things come up. 

@Mike Lambert Do you have any short-term rentals in Malaga? Also, I saw your post about taxes. Are there any extra fees when purchasing property as a nonresident? 

Thanks for the replys. I do tend to agree with you guys. Short-term rentals are probably the way to go. The price you can charge for rent bumps up significantly, therefore improving yield. Still high price for entry in places like Malaga Centro or Marbella. Need to find the right deals or possibly search in the villages close by such as Mijas or Torremolinos. Any advice for finding good deals in Spain? Probably important to network and meet local investors. Right now I'm only searching on MLS websites and facebook groups.

Hello everyone!

Just found this forum on Spanish real estate. I'm fairly new to biggerpockets but I have been interested in real estate investing for a while now and I've finally decided to take some actions. I am from the USA but have lived in Spain now for 5 years. I'm currently in Malaga. I'd love to invest here but as previously mentioned in this forum high costs and low rents can make it a little more difficult. My goals are cash flow and long-term holds. I'd love to get this forum going again and get up-to-date on the current market. Does anyone have any tips or advice when investing in the Costa del Sol? I love to have a chat and learn more. Thanks!

Taylor