PachalAUTHOR · CONSULTANT · SPEAKER · COACH · INVESTORSubject2Institute.comRegarding the insurance aspect of a subject to deal, what are the main questions you would ask an attorney to ensure the deal is structured correctly as it relates to the insurance policy?

Consider all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

My goal is to help property owners navigate management challenges while ensuring their investments are well taken care of.I’d love to hear from experienced investors about what’s working in the Charleston market and share insights as I gain more hands-on experience.

Step 1: Ensure you can get financing (is it a cash purchase or will you need a loan). 

Are you using a specific property management software to handle this automatically, or do you have a different system in place to ensure accurate tax reporting?

ALWAYS ensure the contractor walks the property with you or the realtor and a CLEAR scope of work is defined.

How do I know which questions to ask to ensure the property manager is performing at its best?

Key Factors for a Good Seller-Financed DealCash Flow: Rental income should exceed monthly payments (PITI) by at least 1.25–1.5x.Purchase Price: Compare to ARV and market value for fair pricing and equity potential.Interest Rate: Aim for competitive rates; higher rates must still allow positive cash flow.Amortization/Balloon Terms: Favor longer amortization and align balloon payments with your exit strategy.Down Payment: Lower upfront costs reduce risk but should meet the seller's expectations.Flexibility: Seek no prepayment penalties and fair late-payment clauses.Property Condition: Ensure the property’s condition matches terms through inspections.Seller Motivation: Assess the seller’s willingness to negotiate favorable terms.Exit Strategy: Have a clear plan for refinancing or payoff at term end.Portfolio Fit: Ensure the deal aligns with your financial goals and risk tolerance.Vetting multiple deals and consulting professionals is crucial to making sound decisions.

The building next to yours looks much nicer and has THREE security vehicles parked in front.

Provide clear instructions on where and how to pay to avoid confusion.Recover Security Deposits: The current property manager is legally obligated to transfer tenant security deposits to you or the new management company.