All Forum Posts by: Dustin Caldwelll

I have always used BofA and Pentagon Federal Credit Union in the past for my banking needs but am looking for a real estate friendly local bank or credit union to do business with. Does anyone have a referral for one in the Atlanta area? 

I have one rental in ATL where I use to live before being transferred to Chicago for my job where I currently rent.

I currently pay $250 a month in PMI and have $13,000 to go before reaching the 20% equity mark that my mortgage company requires before removing the PMI. I have the opportunity to take a private loan out for 5 years for up to $20,000 at a 4.75% interest rate.

I am having the dilemma as to weather I should take out $13,000 to pay off the PMI and save the $9,000 I would waste in PMI in my current pay off schedule or take out up to $20,000 to invest in a new rental property?

Based on my calculations I am estimating that for the new rental property to be beneficial I would need to buy a 100K house or less to be able to afford the 20% down my bank is requiring and it be able to generate a minimum of $375 in positive cash flow to cover the loan payment.

I feel as though the PMI payoff is the better more guaranteed investment route but the thought of a new property is making me droll.

Thanks for the input everyone. I think the ROFO is a solid compromise and allows both parties to be more comfortable. I also liked the congruent message that an attorney needs to review. Will do this. I plan to hold the house for a minimum of three years. If this were not the case then I don't think I would opt for the ROFR and the ROFO would probably push my comfort level. Thanks again everyone and please keep the conversation going. I am learning a lot.

I will have positive cash flow each month and currently have positive equity in the home. Also I hope the market continues to improve and allows for a better price in three years to possibly sale. This is what I was thinking as far as the "whats in it for me" aspect.

The owner is qualified to buy. Hey owns his own company and has split his time between ATL and Colorado for many years. He is now getting a divorce and needs a house to stay in while he is in ATL. I got the impression that he wanted to rent because he needs something quick (needs to show court he has a good home for his daughter during divorce proceedings). Also he is a CEO so he is extremely busy and implied he didn't have the time to house shop. Credit check, pay stub review and background performed.

Thanks to you both. Joel I am not under water. The house is worth around 250K so towards the high end (depending on your market).

I had to relocate to Chicago from ATL for my job and hired a property MGT company to assist with renting out my home in ATL. We found a tenant who owns his own company, wants to pay in advance with 3 month increments (from his companies checkbook) and wants a "first right of refusal" if we decide we want to sell the house in the future. He also wants to sign a three year contract. The language my property mgr put in the contact is below. We have not signed this contract yet.

I feel like there are some angles here where I could get screwed. Open to all pessimistic scenarios!

During the term of the lease, and any extensions thereof, "Resident" has the first-right-of-refusal to purchase "Property". "Resident" has the right to purchase "Property" at the same price and terms as provided to the "Property" owner in a bona fide offer from a 3rd party. The 3rd party offer must be acceptable to the owner's, in the owner's sole discretion. "Resident" has 36 hours, after being notified, to match the 3rd party offer with a bona fide offer of equal or greater value and terms. If "Resident" does not deliver a bona fide offer to purchase the "Property" at equal or greater value and terms within 36 hours, "Property" owner has the right accept the 3rd party offer with no other obligation to "Resident" concerning the purchase of "Property"