All Forum Posts by: Jared K.

Ouch!! It could be worse but you learned from it. I always look at my vehicle as a mobile office and make SURE I have contracts in it b/c you never know when you will be at a yard sale and find out they are selling grannies house once its cleared out!!...some of my sneaky tricks for leads!! Take this one to the bank folks!! I believe I will post it as a topic!!

Good day!!

Turnkey in a rehabbers mind might be different than that of others so it might have been close to turnkey but I dont blame you either b/c it wasnt. Itshould have been fully disclosed about the carpet, inspections etc and you should be getting good explinations of things not mentioned, not just "its worth it".

Very interesting responses here!! There is so much to this equation, some not given, that it would be difficult for anyone to answer but I will add food for thought. Managing your condo from afar wont be easy or free so I would sell it before you move. If the funds are a $250K loan as you said I would be sure to plan wisely how to repay!! I don't see any lender letting you buy houses below $50K, $30K at best b/c they just don't lend very often below that so your somewhat limited there. Also if you do buy a couple of those $50K houses the bank might slow you down by reducing your loan availability amount, and they do it!!! Sometimes they quote you for a single purchase, not several investments properties. I would get to know the Nashville market very well before investing there since its new to you. I am unsure of your knowledge of real estate so I would say take in as much as possible about crunching your #'s before investing in rentals "on the fly"...b/c you can. I am unsure of your profession so I don't know how easily you could get a job there to repay the loan, area's income for your profession, and your capabilities of owning/managing rentals. These are all things YOU must ask yourself to be able to answer this question. 

It all sounds very risky to me but IF I were to do anything of this nature I would:

1. Keep your current job, without it there is no loan

2. Sell the condo before moving, stick back that cash -your gonna need it

3. Be learning the Nashville market as much as possible (starting today) before moving, along with rental info there (rent comps, taxes, etc) and laws in that state/county

4. Study rental property real estate all you can before making a purchase

5. Dont buy anything you cant get out of rather fast b/c once you buy it, "ITS YOUR BABY" until you sell it. Go too big or too small you may get stuck with it!!! Make sure you can pay the payments without a job for several months with that condo sale & savings!!

6. Renting for a year there to learn the market and make sure you want to stay as suggested in the previous comments is a great idea!!!

7. Get opinions on the area for rentals and homes from several brokers/agents, especially the ballpark development area you discussed-could be good or bad? 

8. Play it safe enough that you don't destroy that credit limit b/c once its gone, its gone for a long time! You can always buy more property later.

9. Apply to several positions there starting now. You can always turn them down but at least they will have your resume on file for when you can relocate.

10. If it were me (in your shoes) I would probably buy a nice fully finished basement home (you coould afford without any help from tenants) close to hospitals, factories, etc (separate the two) and live in one half and rent out the other half to medical professionals, manufacturing coordinators, and other professionals who may need a year or so lease that will pay well. Make sure the area you buy allows doing this first. Make sure rents would well support the expenses of the property (yours and theirs) and extra left over to live on, for repairs, etc. If this works out for you buy another one and do the same thing. If it doesn't work out for you it can easily be sold as a duplex or converted back to a home for resale.

There are many ways you could invest in rentals but which one is for you is the question? Big multiunits, small multiunits, single family homes,  and much more! The risk is all on your ability to repay the loan, you owning/managing properties, and making a good purchasing decision in a new area. I hope it works out well for you!

I wish you the best and applaud your initiative but be careful in your decisions!!  

I like the interesting twist you put on those questions to your buyers!! If they DO have criteria I believe you will get it out of them..lol!! Nice work!

@Karen Margrave Thanks Karen, I appreciate the input. We are now hopefully going to use 1 title company so I hope it simplifies matters. 

@Account Closed Never had a problem with it in the past and have done quite a few of these over the years, just used 1 title company which is what I posted about. I have never had to make my buyer aware I was using their funds to close the deal. Never had a problem using the end buyers money. 

Thought about offering a 2 year seller financing option then going to traditional bank financing after that to cash them out? Kind of sounds like a midpoint option you didn't mention so thought I would suggest but either way you go the only way to ask is to ask, not saying it would be easy. No harm intended. 

Update: So after finally getting in touch with the title company I found out that my buyer could use his separate title company to do this and they said it wouldn't be a problem using 2 title companies in different states but it would cost my buyers more $$ (my title companies fees to transfer plus his companies fees to transfer) so he decided to just use my title company since all the paperwork was basically ready to transfer it and it would be cheaper. I did figure out that it still would have worked but would have taken a little longer and more costly. The part that had me puzzled was that he was going to have his title company send the funds to buy a property I hadn't closed on yet so it would have complicated things a little. It wouldn't have been your standard A-B-C closing exactly b/c of how it was going to be funded but it all worked out this way for the best. Now to get my a hold of my real estate agent who has been sick and get all the paperwork sent in!!

Thanks for the heads up!!! I would make sure they had to pay the repaint bill!!!!!!

They sell fake security cameras online that use a battery to power an led light to appear real and they are inexpensive, like $20 each?. I have never had to use them but you might give them a try. I considered this once but I sold the property. I would ask your contractor if he had anyone willing/needing to stay in the property overnight until completion? I would also consider the pit bull inside as suggested previously, was gonna suggest that one myself b/c I have heard it works! You can find an owner and rent his services to drop off and pick up the dog for security. Not sure it would help but if you call the police dept and notify them of the issue and ask for a step up of security. You might also ask the neighbors for help and offer a reward if caught. Hope this helps.