All Forum Posts by: Teri Feeney Styers

He needs to make sure to screen everyone equally and use the same criteria for all. That said, my husband liked to stroll past their cars and see how they took care of the interiors... 

I am married to a mechanic. Over the decades I have witnessed how his brain is wired differently and how easily he can "see" problems and with patience and skill fix them properly. We have flipped, house hacked, and done new construction. I think a fixer duplex is a perfect way to start. If you can get half your mortgage paid and retain some of your cash for the rehab (or get a loan that includes rehab $$) you should go for it.

Having a relationship with an investor friendly and proactive Realtor can't hurt. We hear about off market stuff fairly frequently. @Account Closed

If you are borrowing the balance and you are an investor buyer then that amount of cash will get you into a $300-$350k property @8% interest.  What does that buy in your area and what would it rent for? What's your net after all expenses and some cap ex savings? Do you come out ahead at all? Can you buy a cheaper property and set aside $20k for upgrades and to force equity? $70k is a lot of money but you are correct  - in these times you gotta be more strategic if you want any cashflow at all. 

Actually @Devvrat Kumar they ARE listed in Zillow, etc. You just have to learn to read the language and carefully study the photos. Search for keywords like TLC or "needs" (updating, etc.). Is it a 2/1 but the square footage is large? Maybe there is an extra bedroom or bathroom lurking there. Unfinished basement (bonus points for a walkout)? Do they say "second kitchen"? What if the primary bedroom has its own door to the patio? Can you create a mini-suite? My town is pretty ADU friendly, is that an option (requires bigger chunks of cash or lending options)? I work with mainly investor clients and pour over the MLS daily to shop these "propportunities" to my clients.

@Jake Hughes many of my clients use Apartments.com for screening and also many prospective tenants can have "portable" applications. Good screening is probably the most important part. FB Marketplace and Zillow will probably be your best place to find tenants. Make sure you have your criteria in place before you start accepting applications. Don't skimp on a good lease. Ask other investors or your Realtor for a good real estate attorney. Every state has its own requirements for what must be included in a lease and then there are all the Federal overlays. Invest in a good, basic lease once and then add paragraphs specific to the property being rented (do they need to care for a lawn or shovel a walk?). Join some investor meet-ups or figure out a way to meet other experienced landlords. Ask them what clauses they've added to their leases over time (or what was missing that they wish they'd had). 

You are looking at this the wrong way. You have a job that brings in an income. Your partner has a job that brings in income. His income happens to come from selling real estate. That commission is HIS money. Your paycheck is YOUR money. You are agreeing to make a joint purchase together that requires some cash from each of you. Where that cash comes from is irrelevant. Money becomes very relevant at the time of purchase; especially if there is not an equal contribution. This is where the operating agreement component comes into play. You need to spell out all the details - including an exit strategy. How long will you hold the property? Will there be a buyout agreement? Can one partner loan money to the partnership in the case of an unexpected repair? Talk out all the things that can go wrong and make a plan today! Another note: an agent should never work for free. He/she can negotiate a minimal commission if they wish; but if no compensation is received then the agent's E&O insurance won't cover a problem down the road. Too dangerous... @Brett Bowers  

@Account Closed is correct about wanting a reserve cushion too. The water heater blows up a week after closing guess who pays? And are you selling the correct car? $600 per month would go a long way on a mortgage payment or creating a savings pool. Maybe drive the $15k car for another year or two... Lastly, not to be judgy, but if you have credit card debt that you can't pay off each month then you probably need to adjust your spending habits too. You don't want to pay down your cards, buy a house, then find yourself back in debt in a year... 

@Dustin Mccoy What you have is a chattel mortgage similar to a car loan. But can the mobile home have increased in value? Yes - if "value add" things have been done to improve it; or if the general area has a tight housing market and there is an appetite for this type of home. And, if the home has, at minimum, retained its value then 8 years in loan payments should have reduced the debt therefore creating a potential profit when sold. 

@Scott Trench @Bruce Woodruff @Nicholas L. @Don Konipol  So... I used to manage a drag strip, and I am old enough to collect Social Security. And I own a brokerage and development company. I think I'm your gal for the assisted living / race track! If you call me for an interview I may or may not show up. @JD Martin