All Forum Posts by: Heather C.

I think you have consider what the market will bear.  If your competition is consistently charging less and you have the same product (ie size, condition, neighborhood) then it might be too much.  I personally charge a security deposit based on their credit score.  Starting at one months rent and going up if their credit warrants it- this tends to be to my mid to lower end rentals.

The BPO does play a part; but unfortunately its at the end. This typically happens when the BPO is much lower than the mortgage amount foreclosed out. Example: I have a current property with an ARV of $179k, the mortgage foreclosed on was about $165k It has been trashed, wiring ripped from the wall, etc. My BPO was $95k based on the condition, market, etc. However the bank has just lowered the price from $150k to $129k. I've even had offers at $120k (owner occupant) but they won't take it. Its been sitting vacant for over a year and my listing since Feb.

Its frustrating to say the least.

When I purchased my first multi family (a quad), I went to a small local bank and they took the risk; but they also cross collateralized the loan with my primary residence.  Not the ideal situation; but 5 years later I still own them both.  If you buy it right, you shouldn't have an issue with financing....just get creative...seller second, offer additional collateral, etc.

I think it's important to know why the banks are "over pricing". It's not necessarily because they are unknowledgeable about market prices (although they are at times), legislation was passed to make banks market properties in a way to protect the foreclosed consumer against a huge unnecessary deficiency judgement. Therefore they must start high and eventually come down over a period of time. In addition to investing, I am also a REO real estate agent for several large banks. I don't always understand their rhyme or reason for doing things, but understanding the legislature binding them lets me know to be patient and keep that lead as a warm lead. Check back on it every so often. It will come down if it is not priced right for the market.

Hey Jonathan,

I'm also a FL to Charleston transplant.  The market is such that it is a sellers market in most areas, with the exception of the higher end locations (think isle of palms and kiawah). Welcome to the low country and let me know if you need anything. 

Heather 

Joshua Dorkin Its been a slow process and since the rebuild is so extensive, I don't expect it to be done until early December. Surprisingly, the whole situation has worked out well even if slow. Plus now I feel as if I have a PHD in fire safety.

I often find Zillow rental estimates off as well....both high and low in areas. The best way to find out what your rent should be is based on your market. Drive around the area and look for homes that are similar to yours.. # of bed/bath and sq ft. I would add a bit for the inclusion of landscaping if that is something atypical of your market. And for solar panels...well I don't know what to say there since I don't have any.

Deposit wise I never accept LESS than one months deposit. This helps to ensure paid month if they skip out of town or do damage YOU get PAID. I would double check CA law about deposits just in case there is something funky there.

Good luck!!

Chris Nwoke First off welcome to the world of real estate. Like any business, there are people willing to take advantage of uninformed newbies. I agree with Phillip Dwyer that a job in the field is the best way to learn. Soak up all the information on this site and find a reputable local REIA club to join.
It sounds like you have the determination, now arm yourself with the knowledge and surround yourself with TRULY successful investors (not those 3 deals deep). REI is NOT easy; but it can be very rewarding. Best of luck

Chris Masons the utility area was on the back porch, so in a comedy of errors the tenants had a bag of match-light charcoal laying near the dryer. So make sure your tenants are storing anything flammable next to it!! LOL

Fred Maul That is the first thing I did- replenish my reserves!!!

Craig Sturgill Yes the 50% rule is just average; but I would never go below that even if my expenses were less.....meaning I would just add more to my reserves if my true expenses were less. Then again I'm a very conservative investor and its served me well.

Susan Knight

I'm new to the Charleston area so I don't know much about that investing market (SC in general) since I only invest in FL. But some principals are the same: buy low, make sure you have a contingency plan, time is money and educate yourself on everything. You have made a great first steps so even though you don't have a house in the works....start connecting with other investors and hard money lenders.

Best of Luck
Heather