All Forum Posts by: Account Closed

@John Thedford 

Congratulations. This sounds like a win-win for everyone.

@Dustin DuFault 

If the tenant is willing to provide the labor (and you are confident he/she has some painting skills), why don't you buy the paint? This way you get your rental painted with good quality paint, and you get free labor.

 There may needs further consultation on the color - perhaps you can agree on something the tenant likes but that is still neutral enough for future renters.

@Riley F. 

My goal is long term buy and hold for cash flow. I view appreciation as the icing on the cake. I don't factor it in because it will only ever be realized when I sell the property for more than I bought it. Comps and selling prices in the area may give me an indication of the value but its not real until its in my bank account one day.

I do keep appreciation in mind though by buying in stable areas that have performed well historically. I don't buy new builds and I don't buy in newly expanding neighborhoods.

I know some investors do factor it into their calculations though. Hoping they will post and enlighten us both. 

@Joe D. 

You mention a realtor? Have you factored in the commission?

By when do you have to respond to the offer? Can you do that after your open house?

@Vonetta Booker 

I echo what someone said, its different from buying a personal residence. I do like to believe that I could live in a house if I buy it (who knows, maybe one day if its vacant it will make sense to do so) but other than that its just about the numbers and the rentability. 

Also, as someone said, you may need to make a few offers before you get your first place. The idea is to spend as little money as possible going in so you tie up as little of your cash as possible and maximize any appreciation down the road. You should be making offers that make you feel uncomfortable and you'll get a lot of no's.

@Debby Knoff 

All of the above. Keep your eyes and ears open. Network, Look on property websites and go to open houses (even if it is just for the practice of looking at houses and looking past the aesthetic things that you like/don't like and looking at the numbers). Drive around neighborhoods you like and look for properties that might be for sale i.e. try "driving for dollars" (do a search, lots of great posts and blogs on this site). Craigslists. Connect with wholesalers in your area that are on BP. Buy the local newspaper - in some places, auctions and estate sales may be listed here. Talk to people, tell them you're looking to buy a house in X-neighborhood - you'd be surprised how many people know someone who heard from someone that someone is selling their deceased Aunt Mae's house.

There is no one way to find your first deal. Be willing to try everything.

I use property management. I use a small company and so far they have been great. It does reduce my income by a small amount but I live nowhere near my rental. I make sure a family member shows up when maintenance is being done.

@Hattie Dizmond I also thought of divorce as a reason. But then I also thought of bankruptcy and all her furniture was repossessed.

Thanks everyone for the tips and ideas. I will ask the realtor for more information and, if I go ahead, to ask to have the tenant put on a new lease with my name on it. @Al Williamson , @Brendon Woirhaye ,@Jesse Waters 

So I'm seriously considering putting an offer on a 1b/1b rental unit. The unit is in great condition, the location is awesome, the numbers check out. The unit already has a tenant in (tenant moved in almost 2 months ago and has a one year lease) and is paying market related rent. If I bought the place I would be taking over the lease. I am doing due diligence and have requested her lease agreement, a report on her tenant application.

The one weird thing: She moved in 6 weeks ago, the place is clean, she presents herself well. But the place is almost empty. A mattress on the floor, boxes of clothes and personal belongings in the corner but no other furniture. Now I remember not having a lot of furniture when I rented my first apartment age 22 but this lady is probably closer to 40 and can seemingly afford to live in an apartment in an "A/B" neighborhood.

Any thoughts? What does your spidey sense tell you?

@Kimberly Land 

I definitely will! It also sounds like your attorney has your back.

What about attending some local REI clubs? They're great for networking and meeting likeminded folk.

I don't want to give specific advice since I don't know Chicago and I don't invest in the US. Hopefully, there will be a few more responses from other BP colleagues.