All Forum Posts by: Mark Whittlesey

No. They are absolutely not as appealing as SFRs.. At least not in general. There may be exceptions.

I would however expect them to compete very favorable with similar sized apts... I would expect more amenities with a typical condo.

@Bob E. 

No. I dont think so. I think there are a variety of factors. But all tenants were and are long term renters.

With one, the neighborhood changed (worsened) and he no longer wanted to rent there.

One lost her job and ended up having to downsize.

One was dis-satisfied with the pest control I provided (I really did try to work with her on it but spraying every single month was simply not an option.) And I think cost/divorce was also an issue.

One was just a poor decision. Bad tenants.

Looks VERY cool!! But not Android version?? :((

Two thoughts...

One.. you get annoyed really easily. I am an out of state investor so I get similar direct mail from "investors".

You know what I do (since Im not interested in selling)? I trash the letter.

You know how long that takes me? 1 second.

You know how annoyed that makes me? Not at all.

Two...

As for FMV... that is a MASSIVE over-simplification. Yes, it can be sold at 100% FMV.. if you can wait for the right buyer and if they can get financing and if it is in "100% FMV condition". And if you sell it yourself.

If you are behind on your payments or going through a divorce or are sick and tired of dealing with tenants from out of state or if the property won't pass FHA inspection or if the OO buyer think it looks terrible then no.. you really CANNOT get 100% of FMV.

So even if you personally do not fit into any of those other categories, maybe someone else does? I have bought properties located from direct mail. It seemed like both parties were happy with the transaction.

Stories abound of investors who pyramidded their profits into "empires" only to lose every single unit (or at least MANY units) to foreclosure.

It's hard to lose a SFR with no mortgage on it.

Yes. They can pierce it. It doesn't mean that it's a 100% guarantee that they will.

Easily.

A house that needs to sell in 30 days (or LESS!) is "worth less" than one that can sit for 3 months.

A house that will not pass an FHA inspection is "worth less" than one that will.

A house that is in foreclosure is "worth less" than one that is not.

A house that will require a short sale (taking how many months again?) is "worth less" than one that is not.

And so on...

Does anyone else offer at full price with an Inspection Contingency just to lock up the property and after the Inspection's and Estimates for repairs barter with the Seller.

No. This is more somewhat more standard on multi family. But if I am going to buy a SFR then I am nto going to nickel and dime the seller. If the inspection throws something up then so be it by I am not planning on that.

In this game you need to get the property under contract fast, fast, fast, or elso "Goodbye." 

Dont be a motivated buyer. There are always more houses available.

Would you offer full price, contingent on inspection?

Maybe.

I know very well already that this seller's ARV is out-of-line with the area.

But in this case.. absolutely not.

Agree that PMI is just another cost. I have taken it many times and the deal still made sense.

PMI WILL drop off if the loan is conventional. All it takes is an appraisal.

But if you are getting an FHA loan then it will require a refi. Given today's hostorically low interest rates, that is something to keep in mind. You might have to choose between losing an absurdly low interest rate or keeping MI forever.