All Forum Posts by: Ryan M.

Thank thank you for your help. I was going to wait until they move out so that they will not do any further damage to the unit or decide to break the lease early anyways.

Apparently the property manager called several locksmiths but none of them showed up.  The first call the property manager got was after midnight on New Year's Eve night. I think if he hadn't kicked it in the only cost would be to replace the deadbolt.

Hello,

I just purchased my first renal property about  a month ago with inherited tenants.  I also kept the property manager on for the first month as I was hoping to ease into management.  About a week after I bought the property the property manager called to tell me that the previous night one of the tenants became locked out due to a deadbolt lock that fell out when he tried to unlock it.  She called for several locksmiths to come out, but after waiting several hours in the cold temperatures, the tenant called the police and he eventually kicked the door in against the advice of the property manager.  I just got the repair bill for $485 dollars.  My question is, can I apply the security deposit to cover the cost when the tenant moves out?  I have a feeling that he will not renew the lease anyways next summer.  If anyone has been in a similar situation I would appreciate the advice.  

Thanks!

Thanks everyone for the input. The biggest problem with this house is that it has kind of an odd layout where there is no dining area so the previous owners converted the one car garage into a dining area and there is no garage now. I think I will just have to bite the bullet and lower the price on this deal. I guess it is better than losing money but I did put quite a bit of work into it and I was hoping that I could find another solution. I am pretty confident that it will sell for about $115k. I had a cash offer for $118K the first week on the market  that I should have probably taken.

Thanks again.

Thanks, that's kind of what I was thinking. I'm brand new to this and I thought there might be a way to pull money out and just pay the bills with the rents but I think the margins would be too close. The comps from this street are all over the place. 

I purchased a 4 bedroom property in January that I planned on rehabbing to sell as my first flip.  The purchase price was  $63K which the bank that owned the property gave me as a 1 year 2.99% portfolio loan.  I went a bit over budget on the rehab, as I put in about $34K total of my own cash.  My rehab goal was $25K.  It has been listed on the market now for over 2 months at $125K and I am now considering renting out instead of lowering the price to a point where the profit would be quite low.  I have read a lot more about how the profit is taxed on a flip since I purchased the property, and I am now considering trying to get a better margin on the next flip or trying buy and hold.  My question is should I lower the price to a point that would get it sold and I would make very little, or rent it out.  Rent in the area would be about $1K to  per month, and the mortgage + insurance is $695 per month.  Also, is there a way to recoup any of the cash that I put in for the rehab?  Any advice would be appreciated.

Thanks,

Ryan Matthews

Hello everyone!

This is my first forum post as I have been a lurker for a while, but I just wanted to share that I got my first investment property under contract yesterday.  I was amazed at the way it worked out and I wanted to tell everyone about how I accidentally got a portfolio loan for my first property.  

I found a bank owned property that the numbers looked good on so I made an offer which I planned to finance with hard money or a rehab loan.  The bank liked the offer but countered back on the closing date.  The bank stated that they need to close within 30 days on the property before the start of the new year to get it off of their books.  I went back to the lender that I had planned to use and he said that there was no way to close within 30 days, so I called the bank's representative and told him that I was really interested in the property but that my financing was not going to work out.  That is when he asked me what loan terms I had been offered by my lender. I realized just then that he (the bank) may be willing to finance the deal to get it sold.  

In the end he was able to give me a portfolio loan on the property at 2.9% on a 1 year arm, 10% down, no PMI, and $600 in total closing costs. Also, I will be able to close on the property within 30 days as the bank is expediting the transaction. I do have to use my own cash for the rehab but, at 2.9% interest, holding costs will not be that bad.

I never would have had the knowledge to negotiate a deal like this without Bigger Pockets! Maybe someone else in the community can use this strategy as we approach the end of the year to get a good deal. 

Good luck to everyone,

Ryan Matthews