All Forum Posts by: Account Closed

Yes, as long as you live in one of the units fha will finance up to a 4 unit property.

Thanks Rick, will do.

Actually read it for the first time just a few months ago. Great book, wish I'd have learned those principles when I was younger. Now I'm reading Think and Grow Rich by Napolean Hill. Another great one.

For anyone looking for big ticket items that doesn't live in a large metropolitan area there are several sites that will search multiple craigslist cities at once. I use searchtempest. I'm willing to drive an hour or 2 if the deal is good enough. Just thought I'd throw that out there in case it helps anyone.

Thanks for the info guys, I didn't think it was that important since I was getting an inspection anyway. I even told my attorney that, but he seemed to think otherwise. Thought maybe I was missing something and had to ask the pros.

So I think along with steering clear of this realtor (right about the disclosure or not his actions are unacceptable), I think I need to look for a different attorney for my next deal.

If you want to keep it short, skip to the last paragraph where I ask a question, otherwise read on :)

I put in an offer over a month ago on a house that is in pretty rough shape. Holes in walls, flooring torn up, one bathroom missing fixtures, other bathroom fixtures smashed, missing a window, roof in bad shape (can see sheathing along eaves in spots), hole in garage roof, ext. (you get the picture)

Anyway, I offered $18,500 if seller would finance and seller verbally accepted. However, the realtor had a few "typos" on the offer paperwork which concerned me (one of which was an extra $100,000 on the asking price) but he said just sign and return and he'll fix it later(he didn't want to fix it and resend it). So instead I ran it through my attorney and he said he can fix it before I sign, but he had concerns about the property disclosure.

According to the property disclosure there was absolutely nothing wrong with the property. They had just ran a line through the "no" column and signed. Now, this didn't concern me because I had looked at the property and was planning to have an inspection anyway, but my attorney insisted seller redo disclosure paper properly since obviously there are several things wrong with the house which is in direct contrast with what the disclosure states.

I brought this up to the realtor and he got very upset about it. Told me "that's the way I always do disclosures and that it was a rental house and she's never been there so she (seller) couldn't possibly know the condition". Ok, so obviously it was the realtor and not the seller who filled out the disclosure form. But in the interest of getting on with it and closing the deal I asked him if he could please just have the seller redo the disclosure form to appease my attorney so we could get on with the purchase. He said ok.

Fast forward over a month. I've been getting "tomorrow or the next day you'll have it" every time I reach him. Finally I sent him an email stating I am no longer interested due to the excessive wait. He responded that sellers attorney already had it and he thought I got a copy to. That was a lie. AFTER he responded to me he sent it over to sellers attorney, who forwarded it to my attorney. So, it was finally done and we can get on with it, or so I thought. Instead of a line down the "no" column, each individual item has "no" individually checkmarked. So absolutely nothing is different. Obviously this realtor was offended and is now just being an a$$ with no intention of getting it filled out correctly.

So, after all this I was wondering everybody's opinion on whether getting the property disclosure filled out correctly really does matter. My attorney thinks so, but obviously the realtor does not. Because of this realtors actions (and lack of) I am highly doubtful I'm going through with this deal, but I'm curious as to your opinions so I know for future deals. Is it important to have a Property disclosure filled out or isn't it? Thanks everyone (and sorry for the long post )

You could also price out mowing/snow removal to see how much it would cost and give the tenants the option of doing it themselves or having you take care of it (for a slightly larger rent payment).

Ok, I see. You're just planning on having the rent cover the monthly payment, but still be in the hard money loan. So renting isn't an exit strategy, just a way to buy time till you get it sold. Thanks for clearing that up, and good luck with the deal. Sounds like a good one.

I don't have any reassurances for you, but I do have a question. You say to get out of the HML you need a quick resale or renter. How would a renter help you get out of the HML? Am I missing something? I thought you had to have a sale or refinance into your own name to get out of the HML.

Since your currently renting, why not look into buying a 4 unit with FHA financing (low down) or conventional financing if you have a good chunk already saved. Then live in one unit and rent out the other 3. You could still use a property management service and not tell the other tenants your the owner so they don't bother you with every little problem. Then your rents would pay your mortgage and you'd be living rent free. This is only one of many options, but I think a good one for your situation.