All Forum Posts by: Heshel Mangel

Roofstock is really interesting and I love the concept, the only problem I have with their site is much of their stock seems like it can be a gamble. In my opinion you are better off sticking to one or a couple of areas that you will end up knowing inside and out so good deals are more apparent.

100% . Even if you're using Roofstock as your platform, you should still own a market. You can't spread yourself too thin looking into every city and market. Pick one or two cities that you'll spend your time on and know everything about the city. A house isn't a product by itself, it's a part of its neighborhood, market and sub market.

1 Vote

@Cassi Justiz What type of protections are you referring to? The ability to back out of the contract or something more than that?

I always told myself I wouldn't get involved in any HOA properties, as it takes the control out of my hands. It is a cheap HOA though and they do help maintain the property values of the neighborhood.

Thanks for the advice!

@Brian Ploszay It's not even that significant of a hit right now, but who knows? Maybe it'll go up in a year..I just don't like that type of lack in control I have over the numbers and the costs.

@Russell Brazil Yes, it is an actual HOA. It was found by the title company as well.

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@Edgar Casillas There are plenty of threads on this forum discussing Roofstock with case studies. Here are a few:

https://www.biggerpockets.com/forums/92/topics/533...

https://www.biggerpockets.com/forums/92/topics/468...

https://www.biggerpockets.com/forums/48/topics/589...

There is so much more to purchasing a house than the listed purchase price. In fact, the listed purchase price should be meaningless if you are being honest in your due diligence. Understand your goals and what you are looking to get out of the property and then evaluate what it is worth to you.

At the end of the day, only you can know if it is right for you based on what your goals are. I'm happy to discuss this further with you!

Good luck!

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I am under contract on a home, where the seller did not disclose any HOA fees (claimed there was none), and now in the appraisal report obtained from the bank, I see there is HOA dues. It is not much, but still comes with all that is HOA (including incidental fees, transfer fees, etc..).

Any suggestions how to proceed? Should I back out because of that discrepancy? Move forward? Negotiate with seller?

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Originally posted by @Akeem Moreno:

Has anyone tried Roofstock as a rental property strategy? If so how did it workout for you?

There are plenty of threads on this forum discussing Roofstock with case studies. Here are a few:

https://www.biggerpockets.com/forums/92/topics/533...

https://www.biggerpockets.com/forums/92/topics/468...

https://www.biggerpockets.com/forums/48/topics/589...

At the end of the day, only you can know if it is right for you based on what your goals are. I'm happy to discuss this further with you!

Good luck!

2 Votes

Originally posted by @Jim Truman:

@Hershel Mangel you're correct. As a busy professional in the DC area I can't afford to invest here so it'll be out of state, and I also don't have the time/desire to renovate properties. So I'm looking for out of state, good condition, property management, with enough cash flow to make it a good deal. I don't think paying cash makes a lot of sense so with 25% down, I want to make sure I'm not ignoring deals because people on bigger pockets would say they don't cash flow enough but also not getting into a deal that seasoned investors wouldn't consider a good deal.

Jim, at the end of the day, only you can decide what is a good deal *for you*. You have goals, and if a deal gets you closer to that goal, it is good for you. Don't worry about everyone else. If you're goal is to have free and clear assets in 30 yrs for retirement, then as long as you aren't cash flow negative it's a good deal. Just make sure to leave some breathing space for reserves and future down payments.

1 Vote

Originally posted by @Sophia Coleman:

@Kevin Barnard Hi Kevin, I’ve been seeing Per Door mentioned a lot reading these Forums. Exactly what does that mean?

That means that if someone is targeting "$200 per door", they if they buy a 4-plex, they will want a total $800 cash flow every month. Per door is just another way of saying per unit.

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@Jim Truman There are a couple of way people are getting that cashflow on a monthly basis. Either by buying under market value, and adding value through renovations, by paying cash for the property, or self managing.

If you are buying a property on Roofstock, chances are 1) You are paying full market value for the property, with no opportunity to add value yourself 2) You are buying the retail property with a traditional mortgage 3) You are an OOS investor who will need to pay for a Property Manager.

That is why you aren't finding higher cash-flow deals. Buying a property at full retail value (on Roofstock), the cashflow you are gonna get is hopefully just enough to cover all your expenses and leave a reserve for when bad things happen, at the same time, the rent is paying down your loan so after 30 years you have a free-and-clear asset.

1 Vote

Originally posted by @Michael Ten:

Originally posted by @Heshel Mangel:

Originally posted by @Michael Ten:

Hi! I'm new to the forum (as a poster), but I have enjoyed learning from this community as a lurker.

I purchased a property through Roofstock in KCMO. It has 1.5 baths on the main floor and a half-bath in the basement. It passed their inspection with no issues, but the inherited tenant complained of plumbing issues in the downstairs half-bath. When she moved out, I had an auger cleaning done as part of the rehab.

A new tenant moved in on December 1st. On Christmas, she complained of the downstairs toilet backing up, so the property manager sent someone out there. On the 1st, she complained about the same issue again, and we sent out another appliance technician. They flushed the line with a hydrojet and sent a snake in there, and they think there is an obstruction or broken pipe in the system. I have been contacting plumbers to go in, but it requires coordination since the tenant insists on being present, leading to delays. She also just informed me of a roof leak in the garage.

The tenant has withheld rent for January, and she has asked to break the lease early and get her security deposit back. I don't think the relationship can be salvaged, and my property manager is sick of her, too, so I'm happy to see her leave. I understand her frustration, but I view her issues as inconveniences, not an inhabitability issue. I am not inclined to return the deposit in full -- at the very least, taking a pro-rated rent for the 80% of the house that is liveable.

My question is: do the bathroom or garage situations break the implied warranty, given that the main floor is fully useable, and we have been responding promptly to all requests? Would you return the deposit in full (minus any cleaning costs) and take the hit for January rent?

Thanks in advance for sharing your experiences!

Did the Roofstock inspection report show any of these issues? Were you aware of them before?

The Roofstock inspection turned up nothing. The prior tenant was under Section 8, which meant there were annual inspections. Those didn't uncover anything, either. The roof is new (2014). The sewer line from the house to the street was also replaced in 2014.

As I mentioned, the prior tenant complained of flushing issues downstairs, so I had an auger cleaning done prior to renting it out again. These issues began on Dec 25th as far as I am aware, and I have sent two service technicians out there with additional work incoming to replace the line.

I'm not sure what more I could have done. I definitely regret the purchase and will be avoiding Roofstock properties in the future... *lol*

Was going to ask you. Have you ever contacted them about this? Their whole model is based on giving you valid and accurate reporting (obviously as intelligent investors, this does not absolve one of doing their own DD..trust by verify), if they were inaccurate that should be brought up to them to see if they will help rectify the situation.

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Originally posted by @Michael Ten:

Hi! I'm new to the forum (as a poster), but I have enjoyed learning from this community as a lurker.

Thanks in advance for sharing your experiences!

Did the Roofstock inspection report show any of these issues? Were you aware of them before?

0 Votes

All Forum Posts by: Heshel Mangel

Heshel Mangel has started 25 posts and replied 198 times.

Post: Anyone use Roofstock

Post: Seller did not disclose HOA fees

Post: New to the real state investments

Post: Seller did not disclose HOA fees

Post: Anyone use Roofstock

Post: Doing the math: Cashflow, Reserves, Mortgage

Post: Doing the math: Cashflow, Reserves, Mortgage

Post: Doing the math: Cashflow, Reserves, Mortgage

Post: Habitability / break-lease -- need advice, please

Post: Habitability / break-lease -- need advice, please