All Forum Posts by: Frank Fiore Jr

Hello, guess what; I'm coming down the to the wire and I need to make a decision; can you believe its been a year! Here are some updated #'s! 

I am still on the fence about this trying to find a way NOT to see the short sale as my best option...

What would you do! 

Remaining Mortgage: 300k +/-

Property Value: 230K (-)

Yearly Expenses: 6K (out of pocket; after rent )

CapX over next 10 years: 50K (+) w/ 30K guaranteed 

Short Sale #'s:

Sale Price: 210K

10K out of pocket

Tax implications: 20K (will have to make payments through the year to stay within the 90% BS.) 

Credit score currently 816 after S.S. destroyed! 

Sorry but I have to share this; I sent the link to my girlfriend and this is what she replied...

"I don’t understand… is it for investors looking for other investors to partner with? Or romantic relationship with the like investing mindset so that you work and play together?" 

Similar to the banks the site told me I'm not within the lending / dating guidelines :) 

I'll be there..... 

I have a 2 car wide 2 to 3 cars deep driveway / yard (1/2 of it is paved 1/2 is not)  for my 2 family; the longest sitting tenant gets the paved half; and new tenant gets the unpaved 1/2...... Its in the TAW agreement as to which side they are allowed to park on... I am lucky that we have a large amount of off street parking in front of and around the house as well.

I have an issue from time to time with the "bus stop people" parking in the driveway waiting for the bus..... and depending on who is renting next door they sometimes believe its not a problem to park in my driveway.... 

I inform my tenants if they see a vehicle parked in the driveway that is unknown to call a towing company and have it hauled away... to my knowledge that has never occurred... 

Some advice from by no means an expert..... 

- Regardless of the area make sure the property is cash flowing positive when you leave and rent both or all units (obviously you have to know the #s, and learn how to accurately account for all costs involved for ownership, including future repairs etc...)

- It seems you have two different ideas rolled into 1 conversation

1. You need to determine if you're buying an investment property or a home to live in, you will not find a property to fit both needs without some level of compromise.  Not a bad thing but I think you're really looking for a long term investment property. 

I'm going to assume you are going with Investment Property. (as you stated you want to buy another place in a few years) I'm also going to assume you have your buying criteria defined and know the #'s your looking to use as guidelines. 

To that end.....  

- In my humble option, I would expand your buying radius to include surrounding areas, with your town of choice as the center point. You don't have to live in your desired location at this time if you can find a property in the surrounding area that will cash flow to a higher positive exception...

- look for "b" towns that boarder "a" towns, or "b" sections of town that boarder "a" sections of town and buy just over the line... you will be surprised how much of a difference that can make, taxes, cost of ownership will be lower and rent is very close to the "a" neighborhoods... obviously there is a lot that goes into this... but you can squeak out a higher cash flow % by doing this.

- You are gong to buy and hold this property, so its an investment not your primary residence. From an investment standpoint if the #'s work its a good deal regardless of the current market condition. If she cash flows she cash flows.... don't forget vacancy rates etc... they may be low at this point do a 10, 20 year average to see what the "bad" times look like as this will have an impact on your expected yearly vacancy rates... which obviously impacts your income... 

1. Read the The Ultimate Guide to Tenant Screening (with Infographic) which is part of a link already provided

- if you follow the above mentioned Guide you'll be so far ahead of the game you'll think your in last place! 

2. Read the Mass laws or at overview them; rinse and repeat, do not chew or swallow; it will induce vomiting....; Beer in hand; I mean; bear in mind this may sway you away from future investments in Massachusetts. Kidding... kinda :) 

- A good place to start: http://www.mass.gov/ago/consumer-resources/consume...

3. I recommend joining a local REIA or local Land Lord Group; like minded people sharing information typically from your local area so you know it the good stuff... 

- There are many great groups in our area...

3. Specific areas to be familiar with... 

1. Eviction process (just sign over the deed to your house it will make life easier for you) :)

2. Fee's you can request or charge 

3. Federal & State Protected Classes 

4. Pet laws, there was a recent court case that changed or altered the way you can charge for pets; sorry I can't locate the article but I believe its here (BP) somewhere... 

4. Tenant Screening... 

I use SmartMoves, (there are many others; and many posts on BP around this subject)  I request a copy of their drives license, pay stubs, W2 and a bunch more; and a completed Application; I tell them if doesn't correctly correspond to the results in SmartMoves.... Houston has a problem.... I don't make all the paperwork "mandatory" but some of it is; I tell them, the more information they provide the more informed decision I can make... in this case less is not more.... 

I strongly suggest you set up online screening / background checks with a site that allows the tenant to pay... if you don't and ask for the cost associated with doing this background check make sure it is a separate check; (do not include it with first, last, security deposit checks) actually I would only accept cash; and write a receipt specially stating its for the cost of the background check and not a fee associated with the application.... (note; some may view this as asking for a "fee" that is not within the Mass Laws) I would check with your lawyer; and that leaves me with # 5

5. Find a locally grown; pastured raised; organically certified; Lawyer... seriously find the best in the field; in your areas and become his or her office wife, husband.... you're flowers better hit the desk before her husbands! Like the saying goes; its better to know a top notch lawyer and not need'em; then need'em and not know'em... horrible paraphrase but you get the picture.... 

Not completely on topic; and not completely researched; but I heard at one of my local meeting the guidelines for Section 8 housing / government assisted....  apartments are going to move towards "no carpet" allowed. 

So anyone with Section 8 / government assisted tenants, you may want to check into state, local plans for the short term future before installing. Personally I only see the value in carpet on high to mid high end rentals; which I don't own.... Just an FYI...   

I am by no means a experienced landlord; I have one property; but in Mass I'd be hard pressed to find anyone who fully understands all the landlord / tenant laws... that being said I am curious about the "Notice To Enter". I will look into this for Massachusetts at some point but for the sake of carrying on the conversation is anyone from Massachusetts familar with a "Notice to Enter" brief explanation would be nice.... Thanks.... 

I'M PI$$ED; why haven't I received this many replies to a single post regarding reasonable requests for REI knowledge! LOL.. I'm kidding; but I really don't understand the amount of replies to a inquiry such as this...

There is a research paper here somewhere? Something to be said for Titles I guess....  

I should be studying; REI that is; but I got board so I figured I'd finish my lunch with a visit to BP... its been a while.... HELLO EVERYONE!

And to the original poster; WE MAKE OUR OWN LUCK BY WHAT WE CHOOSE TO DO OR NOT DO.... You want to be "Luckier" than the next guy; WORK HARDER!