All Forum Posts by: Tony Castronovo

Gee...just reading this now.  And am literally going through the exact same thing!!!  @Bobbe Erlinger I would sure love to speak with you and really hope this is simply a coincidence.  I am at my wits end trying to get my refi processed.  Please inbox me so we can get this straightened out.  Would really like to be able to share with the Bigger Pockets investors that you guys are legit. 

IMHO....there is some amount of "good debt". While there is peace of mind by not having debt, I don't feel paying off my mortgage (homestead or investment properties) is the right answer. Sure my DTI ratios may be higher, but with interest rates so low it's like getting a 4.5% return on my money. There are also some additional tax deductions that you will forego if you pay off your mortgage. I would prefer to use that extra money to invest in higher yield investments. Again, this is just my opinion.

Since you need a "builders risk" policy the premium will be more than what you might be used to / expecting.  If it is a buy-hold then you will need vacancy coverage.  These coverages make your insurance premium higher than just insuring a property with someone living in it.  I use a company that covers builders risk and vacancy...as well as liability coverage on all my properties.  I can share their contact info if you'd like to send me a private message.

@Kelly Rastatter I cannot respond to #1 since I am not from the area.  Regarding question #3, I had a prospective buyer on a house that was concerned about the foundation.  I got a foundation leveling company come out and take measurements, ultimately determining that the foundation was within tolerance.  He documented his findings in an email that I was able to pass on to the buyer.  Most good foundation companies realize that there is no point in crying wolf....you will eventually need their services and if they can help you out by simply giving an honest assessment then it will pay in the long run.  Now if you do indeed need to address the foundation then get your competitive bids and get it done.  Even if it's not a serious issue, most retail buyers get really spooked by the phrase "cracked footer".

Hi @Buerkie Klokpah. Not sure if I am too late to help you. Feel free to connect with me and I can pass along some references.

Just offering a perspective to consider.

I think the same thing.  However, recently I listed a property and got so many inquiries (email, phone, text) that I just couldn't keep up.  I did respond to about 90%+ to let them know the status.  But I a am sure I missed some folks and they could be thinking the same thing you are. 

My only suggestion is to "make it easy and worth someone's time" to get back to you.  I found it difficult to get back to people who only left voicemails.  I'd have to listen to their message a couple times to jot their number down.  If they mumbled and I couldn't get it quickly I moved on.  Also, with voicemail I knew I had to call them and it was a bigger investment in time than to respond with a copy/paste email.  With text, I can't even get a name...so I probably wouldn't respond unless they told me their name.

As with the "make it worth them getting back to you"...it just helps to stand out.  If you are looking to buy a property what makes you any different than the dozens of other inquiries?  Maybe you are a cash buyer?  Maybe you can close in 10 days?  What is going to want to make them respond to you over someone else?

Hi Mike.  I am not sure I follow your strategy.  You are thinking of taking out $40k (living off of $30k and investing $10k)?  If so, how do you intend to use the $10k?  Are you looking to partner? Private financial investor?  $10k doesn't seem like it would get you very far to purchase a property?  Even at the price point you mentioned, this would barely cover down payment and closing costs.  Maybe I am not understanding what exactly you are looking to do.

Not sure if you have a high balance in your IRA, but have you thought about a self-directed IRA to purchase real estate and the tax advantages they offer?

Hi all.  Thank you so much for the great responses.  Clearly, there are some differing viewpoints here.  All of this information and perspective has been a big help.  I feel like I handled the situation well and also have some checks and balances setup for the next tenant based on what I learned here and further research.  Thanks again!

@Jaymie S. I like the approach of an open house.  I have done that too.  I think the situation I am posing here is....what happens if you do begin to process an applicant but don't have a complete picture (missing reference check results, etc) and then the candidate qualifications start to weaken.  Would you (could you) take an application from another candidate?

My interpretation of what folks are saying here and what I understand is that if you treat everyone with the same criteria (you can't approve someone for which you denied a previous applicant) and process applicants in due order then it is ok to take on multiple applicants.  If this were a job posting I would be taking multiple applicants, conduct multiple interviews simultaneously without rejecting each one before moving on to the other.  But of course I couldn't reject a candidate for something and hire someone else who failed the same criteria/standard.