All Forum Posts by: Zach McMichael

Hey Amanda,

A little more advise.  In the City (where all my rentals are), water is flat rate based on number of rooms, number of showers/baths, number of water closets, and the frontage.  Sewer is the same, but does not include frontage.  Trash in the City is $14/unit and is billed quarterly with the water bill.  If Water and Sewer are not paid, liens will be placed on the property, which is why landlords normally pay these expenses.  Gas and Electric are personal obligations, not tied to the specific property.  Basically, if your tenants does pay the electric, it sticks with them.  If they don't pay sewer, MSD will lien your property.

-Zach

Rodney, yesterday I received a very similar message from this guy in the St. Louis REIA group that I am a part of. You received significantly more information that me. I asked for a term sheet and the response was "we do loans 1-5 years." Thanks for posting this.

-Zach

I am looking at a property that would be a good candidate for purchasing by taking over the payments on an existing note/deed of trust.  While I understand how the process works, I have never done this type of transaction and I am curious if anyone here can share some practical tips.

First, my biggest concern is dealing with the existing lender.  I've heard that lenders rarely invoke their rights under a due-on-sale clause.  Even if this lender does, it won't be a big deal because I am confident that I would be able to get a new note/deed of trust, if necessary.  If I take over these payments, how do I normally go about doing that?  Look at the current deed of trust and send monthly checks to the address listed for notice/payment in the deed of trust?  Will I need to keep track of the payments and the outstanding balance manually?  Or should I provide the lender with a new address for notice?

Regarding my agreement with the seller, would you recommend any formal agreement regarding my payment of the existing note?  Or, in your experience, is the transfer of title subject to the existing note evidence enough that I'll be making the payments?

Thanks for the help.  

Hello everyone. This is my first post on Bigger Pockets. I am a real estate attorney that is relatively experience in real estate investing. That said, I have much to learn. I normally buy properties that are REO or from tax sales. I have also done from direct marketing and done one deal that way. At this point in my investing, I'm looking to acquire properties, lease them up, and refi to get my cash (and maybe some extra) out, while still cash-flowing the property. I'm trying to recycle my principal so I can continue to purchase more properties. Eventually, I would focus on using cash flow from my investments and my job to pay off debt and increase cash flow.

I've come across a property that is being sold at a foreclosure sale.  Though I haven't purchased a foreclosure from a substitute trustee before, I'm comfortable doing so, given my experience as a real estate attorney and my experience purchasing tax sale properties.  I think I know what I'm getting myself into on the property acquisition side.  I'm hopeful that if purchased, I can convince the previous owner to vacate the property (I've done this twice before by paying a nominal amount of cash and getting a release).  If not, I'm comfortable filing an unlawful detainer action.

However, I'm looking for some advice regarding leasing this particular property.  My question is about section 8 housing.  The property that I'm considering purchasing I think may be a great deal.  The downside is that it is located in a not-so-nice part of town.  If you know St. Louis, you know there are good neighborhoods and bad neighborhoods, but within those neighborhoods, there are good streets and bad streets.  This is a good street in a bad neighborhood.  That said, this property would not be a flip, but would be a purchase added to my portfolio of rental properties (right now I have 3 condominium units that I rent and two parking spots in a condominium that I rent).  Given the location of this property and the purchase price, I've found myself considering section 8 housing.   I have attempted to do some research online, but haven't found much that has been helpful for the landlord.  Most of the information I've found has been directed to tenants.

Does anyone have any experience with Section 8 housing the City of St. Louis? If so, I'm curious how the process works (Do I need to register with the housing authority?) and if you think it's been a worthwhile investment. Looking to BRRR and keep a tenant that can cover the mortgage and still cash flow.

Thanks in advance.

-Z