All Forum Posts by: Vinod Dasani

Since no realtor was involved the seller does not have to pay any commission.  The contract generally will state that no realtors are involved.  And yes, you can always factor that in your offer as he\she will not have to pay commission.  Its not considered rude to buy direct if the oppty presents itself.  Lastly, it does not matter (based on my experience) whether or not an agent is involved.

Forgot to mention even if the realtor does not (or cannot) agree to split the commission with you it may help in building a relationship a realtor.  This way they know you are doing them a favor and they would do the same in the future by offering you deals they get before making it available to everyone.  Some realtors have then investor networks to who they offer properties before listing.

You can always get a realtor involved who will look after your interest.  Since you have done all the leg work they (your realtor) may also be open to splitting up their commission with you by applying it towards the closing costs.  I am not sure it that works in your state but in Texas it does.

In my experience even though the property is cash flow positive banks will still look at your credit and experience before lending.  You will need to find a bank that lends on these type of properties.  Not all banks lend for investment properties and some bank may also have max\min lending amounts.  All the best!!

You can draft the lease such that most of the responsibility to manage the property is on the tenant.  If its a residential property then you can sign up for Home Warranty so that way if anything goes wrong they fix it and your involvement is only logging the issue.  Its always preferable to own it closer so that you can keep an eye on the property and are aware of the market when its local.

You should probably find out the rental rates for similar properties, occupancy\vacancy rates to determine if its going to have a positive cash flow.  Additionally, since you aren't living in Mexico you may have to consider additional cost of a management company that will take care of renting, cleaning and maintaining the property.  Finally, you should check with a Tax Consultant on the additional income you earned outside the country and how that impacts your taxes.  e.g depreciation, interest etc

If they have been there for 14 years then it may be worth a shot.  Generally, the section 8 tenants need to ensure that the landlord does not file a complaint against them or else it could jeopardize them qualifying to continue receiving the funds.  Many of them due this will take care of the house and pay (their dues) on time.  However, there are some that simply don't care.  In this situation if the tenant has been there 14 years and the previous landlord is giving a good reference then it should make it easier for you to jump in.  All the best!!