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*** Official Real Estate Forum *** (2 Viewers)
- Thread starter jeff_eaglz
- Start date
Adam Sommer
Footballguy
So here are my options:
1. Setup an LLC who will own and "manage" the property.
2. Do #1, but also have a C-Corp own the LLC.
3. Just own it myself and have a huge insurance policy....
I should point out that Im looking at buying new construction properties, not older homes (so lead/mold will not be an issue).
1. Setup an LLC who will own and "manage" the property.
2. Do #1, but also have a C-Corp own the LLC.
3. Just own it myself and have a huge insurance policy....
I should point out that Im looking at buying new construction properties, not older homes (so lead/mold will not be an issue).
Jeff Pasquino
Footballguy
#1. You can always have an S or C corp later on buy it if you want another layer of asset protection.
Mike Anderson
Footballguy
Kitchen: Repair the flaws in the wood. Pull all the nails and screws, a little wood putty (I use Minwax, even comes in a tube if you don't need a ton, just squirt it in, and smooth with a finger, if you need a lot, use a can with a very slim putty knife) in the holes, a light sanding, and paint it out in a White GLOSS paint. Getting Window cranks is easy at any big box store. A good hardware store will have them, but they will cost a little more. Just take one with you to Menard's and get more.I assume the rest are double sash, single pane windows, exactly what I have been dealing with for over a decade, and can rebuild from scratch if needed. If so, there are two sashes (The part that holds the single pane of glass) that meet in the middle. The upper window in the outside slides down, and the lower window on the inside, slides up, right?
If this is the case, do all of them "Meet" in the middle of the two panes and flush up with each other perfectly?
If they do, don't pull those windows out, they are just fine. If they don't, get me a good picture of one of the windows, and I'll walk you through what it takes. After a couple of windows, you will be a pro.
People throw away PERFECTLY good, well installed windows every freaking day to have poorly installed lower quality vinyl windows installs. I would much rather have the quality older single pane windows over some modern garbage where the seal in the double pane is going to fail soon anyway.
If these are what I think they are, you can fix every window back to great shape for under $100.00 bucks Total, and have better quality windows than the replacement ones that are affordable put in poorly by someone who thinks they know what they are doing.
I know I'll be in the minority here, but pulling windows just to pull windows is insane. No one has every just sat some of these rehabbers down and explained it to them. Honestly, with all the additional wood, the R value isn't that far behind the double pane, an within a year or so when the seal breaks, the wooden windows have a better R value. They will always look better than Vinyl as well.
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Mike Anderson
Footballguy
I hadn't thought about the "finished" basement angle. Ask your Aunt if it makes a difference, she is in your market as an Agent.So I lied, I cant sleep.Just finished up our first first day. I'm freaking exhausted, we closed at 2:30, ate lunch, and was in the house working by 3:30. Reevaluated alot of what we were going to do and per Mikes advice we are going to attempt to follow more of his above suggestions. I'm tired and will reply to your post tomorrow.pics of the flip
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I HATE to paint wood, but time is money, and I would paint the cabinets out in a GLOSS white (Like Dover White in Gloss from Sherwin Williams). will do
Is that the "fake wood" style counter top? yes, and that and the fake wood backsplash are soon to be gone.
Dear god lose that and put in a Hard material. You know your flip, but rip up the counter top, screw down Backer board, and use a Nice 12"x12" ceramic/stone tile.
The plan is to just put in a new laminate countertop, but I will check the price difference on the corian (or similar) countertop. Personally, I think tile countertops look dated.You know your Flip, and laminate could be just fine. I LOVE putting in 12x12 Granite squares as a counter top.
The biggest thing to know is that this is a Cheap, easy, down and dirty way to get it done, and it looks GREAT! Just spend the extra to get the Counter top corners. You will never match it up right, and this product "wraps" the exposed corner, and makes it easy. It will seem expensive, but it is worth every single last penny.
Dear god, please scrap off that border at the top of the room. Please! In the plans. Matter of fact, all wallpaper is comming off. What is the Flashlight in the foreground on? Whatever that is, it looks very weird.
This is the "countertop" between where the stove and refridgerator were. Rip it out, it looks out of place without a cabinet under it. Or put a Cabinet under it, but it will be hard to match, and could be costly. Rip it out.
I assume the floor is VCT?? The floor will come up and be replaced with ceramic.
I haven't looked at any other pictures yet, I'll comment as I go.
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What the HECK is that "Shelf" in free space on the left? That is wild out of place, rip that out if it doesn't do something important. Its going, and the appliances are going to be put back where they belong.
The Ceiling fan has seen better days, and is sagging. Replace it, trust me, people will notice it. If it were your Home or Rental, ONLY buy a Hunter fan. They are the best without question. As a Flip, put in anything cheap that looks good. in the plan.
Is the paneling behind the cabinets, the cheapest way is to paint it with GLOSS white and be done with it. I think we're going to remove it.
I like Dover White in GLOSS from Sherwin Williams. There are other ways. If you really want to look sharp, use the tile from the counter top to create a backspash. I think we're just going to go with painting the drywall here. I would buy the matching short laminate backsplash to match, and go Drywall the rest of the way up to the cabinets. It will look very weird to a buyer without a Backsplach of some sort. Here's the plan for that area. We're going to move the fridge there, put in a lazy suzan in the corner, and put a new cabinet above the fridge. Should be able to get something close in style to those cabinets.
The Wainscoting in the "Dinning area", what is that made of? I think you're referring to the area below the chair molding, its just a light purple paint.
That doesn't look right
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The wall paper border HAS to go. Scrape it off. I have a Wall paper remover that uses steam, and is Awesome. You can rent one from the hardware store for maybe $30 a day at max, and they work great. Looking into the corner, on the left hand side, is there a Hole there? Does that need a "grate", or am I seeing it incorrectly? Its an airvent with the cover over it. Weird angle, you can see right through it. We're replacing all vent covers.
Looks like a Black and a Red stain on the carpet. The black you can get out, the red you will not be able to. Don't bother wasting money on a Cleaner guy if you have a red stain. All carpet is comming out. It smells and is not salvagable. And on the first floor, its all hardwood underneath! OK, I have a Fast and easy way to make Hardwood look great, but it takes more time than I have right now as my wife is already all over me to eat dinner. PLEASE remind me about how to do a Hard wood floor cheaply late in the thread.
The light fixture is OK. Visit your local ReStore to see if you can go spectacular for a reasonable price. It's basic, and common, but what a great place to make a statement if you can do it cheaply. We're planning on replacing all light fixtures. This one isn't in bad shape, but I think we're going to go with all silver colored hardware and fixtures. Not anymore
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Nothing to see here, move along.
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Nothing to see here, move along. However, IF you were renting, NEVER do the Ceiling in a GLOSS. It shows, no highlights, every single imperfection in the drywall work, and is a Pain going forward. We're repainting all cielings. And c'mon thats the punch list on the floor!
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Did Some SOB Cable guy really just punch a Cable through the HARD WOOD FLOOR and forget about it to save himselfsome time and ruin your floor? Seriously, they legalize murder, and I am going after Dish and Cable guys first. They are the lowest of scum. (There is a HUGE post here, but I don't have the energy tonight, someone remind me later, lots of Legal FCC stuff I can comment on for Dish and the such. Certainly how the LL can avoid being taken advantage of using the law on your side). Anyway, at this point, you need to cap the line off in the corner of the floor, and put in a plate that future lines can be screwed in to. You want a clean look, and for a couple of bucks, you can get rid of the line out in the room, plate it off, and it will look professional. If you can't do this yourself, post back, and I will walk you through it, or just have a professional do it. Brother is all over this, thanks. Comment to him that he can just drop it down into the basement and coil it, screw in a Faceplate to the end, and screw it to the floor instead of cutting it. Professionally, you would cut it, but this way is easy and simple, and doesn't require a crimper. He will understand. I am going to print this entire conversation and have him read it. Believe me, he will learn alot.
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What is the "Line" coming down at the bottom of the window in the center of the window? Not sure, shadow?, stain?
PLEASE get rid of that Wallpaper boarder. That stuff hurts you more than you think. You think, "hey, it's in good shape, no big deal, heck it adds". Really, if the woman buying doesn't like it, it will kill your deal. Neutral as you can, let the next buyer put in that tacky crap. Exactly the plan
If that is a Florescent light over the mirror, consider going to "make-up" lighting". That is the strip with a ton (Say 5, 7, 9) 25 watt light bulbs. Looks better, and is useful. Also the plan.
Fluorescent lighting in the bath and kitchen is not the play. You want to dominate those two areas. Totally agree.
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GUT and START OVER. yep, my brother is going to start in here and not come out until its done. I am sure he has it, and not trying to say anyone can't do it, just make sure you use "green" board here instead of regular drywall. I am sure he already has it planned.
If you are doing it yourself, feel free to post as you go on this project, and I can assist. I do this type of gut at least once a month as units add to the empire, and units come open that need it where I just didn't deal with it last time around. If this is not your area, hire it out, just understand you need to start over, The Tub MIGHT be salvageable, but that is the ONLY thing in this picture you MIGHT save, tear it all out, and start over. We are going to try to save the tub.
Hire it out, but if you attempt it yourself, please use this thread as your ongoing daily diary so I can help get you through it. I seriously have done an entire bathroom gut and rebuild with my own hands every single month for some 18 months running. I get one at least every month.
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I can't help you with the Ugly as sin Mongoloids in the picture.That said, take a look at that ceiling fan, something is wrong, as it is "off" but I can't pull out the problem in two dimensions. Look at the bulb.
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What the heck room is this? The house is a story and a half, this is the upstairs loft.
It reminds me of a 3rd floor with a railing. If it is a second floor, I can assume that you have a "foyer" for the second floor? Looking all the way back, is that a room over a Garage with a badly slopped room ceiling? Its the green bedroom.
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What a freaking mess. You will need a darker color to get over that blue in as few of coats as possible. My Color for this situation is "Squirrels Tail" from Sherwin Williams. While I am here, go into Sherwin Williams and tell them you are a Land Lord, and they will set up an account for you and give you a standard 20% discount, mine is 30 days net. Everyone should do that if you are a LL or not, anyone in the RE business qualifies for a standard 20% discount from SW. My discount is actually 35%, so haggle. Excellent advice.
Anyway, this room is a mess, and you will need to cover it. I would keep the shelves on the far wall if they are even close to professionally installed. I think they add alot, but if they are attached in a tacky way, lose them. We're all on the fence with the shelves. I will tell you what I did in a space EXACTLY like this one. It cost more, and I am NOT saying to follow this advice like a Mantra, but I took a space EXACTLY like this one and built a custom "Desk" on the far wall. Kitchen cabinets on the bottom, where I cut off the Kickplate area so it would be the right height for a chair. Then an Interior hollow core door that was not predrilled for the handel as the desk top. It created a Cheap "desk" in front of the window, and added storage and Shelfing. I went wall to wall. Just a thought as you think outside the box. It went over like gangbusters, and cost a couple hundred. You want to put in as little as possible, and make as much as you can, so don't begin to think this is the way to go, just offering an option.
With the Ceiling, go Eggshell finish at most, really, go flat. Should we paint all the cielings with the same paint? Are YOU doing the work or hiring it out? If Hiring it out, but Cheap FLAT ceiling paint, give it to the guy, and forget about it. If you are doing the work, pay the extra for the Ceiling paint that goes on Pink, and turns to white. Painting a Ceiling is hard, you WILL miss spots, get the Pink to White stuff. It's worth it. If a Painter is doing it, buy CHEAP flat Paint, and forget about it. My wife is actually an experienced painter. Her and her sister spent many summers during HS/college on the paint crew for her school system.
The more the shine, the more the imperfections show up. The higher the shine, the easier it is to clean (Like for Kitchen Cabinets, but who is scrubbing a Ceiling?) Go buy a two pack of low profile light fixtures at Menard's for $10 and use one here, whatever that is on the ceiling is terrible. Keep the stained wood Floor board, don't paint it.
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Dear god, another one. You can clearly see the style of this house from the last two pictures. Carpet looks fine, and if you are going to save it, and not add the expense (I just did two big rooms of high quality carpet on Monday for $700.00 with great pad, save anything you can). So to save the carpet if it is good repair, you have to go white here. Big red stain in the middle here. Pretty sure its gone. If it is a Red stain, you are done, there is no product or way of getting out Red, Yellow, or Green stains. I look all the time, it doesn't exist. If that is red, you are done. Please don't waste any money trying to get it out, you can't
I would use "Antique White" from Sherwin Williams here, as it is darker than normal white, but still white. Is there any chance you own stock in SW?I get high quality paint at 35% off from them, I used to use Sears paint.
It will take a number of coats, but it is cheaper than replacing the green carpet. Light fixture has to be changed, use the one left over from your two pack. Wall Paper board is terrible.
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I would try and keep the floor as it is not completely terrible. Remember, you are trying to get out with the biggest profit possible. Would it be better in 12"x12" tile? You betcha, but you want to maximize profit, and I believe the floor is a pass. We ended up getting enough tile at the restore to tile both baths and this surround, and the kitchen. Like the reStore do you?Absolutely. Gonna try to make it down tomorrow am.
I see this room has Make-up side lights, and that is great. Here is the Quick and dirty, so you don't spend a fortune and a ton of time here. You can make this bath 1000% better in say 3 hours. Get rid of the wall paper hearts boarder. Hopefully, it is paint, and you can just go over it. The entire non Tile area of the room, Walls: Dover White in GLOSS. Now, for the Terrible Green tile with the tan accent, (I had two EXACTLY like this earlier this year, only the accent was Black). Goto Menard's, goto the Paint section. Look for the Tub and Tile paint. It comes in a Box. There are 3 Shades. Really WAY too freaking White that shows imperfections, "Bisque", and something darker that always looks dirty. You want the Middle Color called "Bisque". It will cost about $17-18. Now, if you were using it on a Tub, there is a ton of prep work, and you have to everything just right or the product will fail (Trust me, experience here), however, if you are taking out the tacky as heck green wall tile that never gets water on it, here is what you do: Open the box, there will be a Bigger can of the paint, and a smaller can of the epoxy. Open both, and mix them together. WAIT, WAIT, WAIT for say 15 minutes to let it set up. If you start painting right away, you will NOT like the result (Trust me, experience here), anyway, use a Small roller and a GOOD paint brush that you are going to just throw away. If you think you can use a Cheap Chip brush for a buck to just throw away to save money, you will not like the result, (Trust me, experience here, the epoxy pulls the cheap brush apart, and you have Paint brush strands/hairs/fibers all over your wall, use a good brush to get into corners). One box can do two entire bathroom walls, and you will have an Epoxy coated sheening white bathroom walls that won't fail as they never get water on them. I have personally done this say 20 times to get rid of that ugly Green Metal (Yes, it's tin, NOT ceramic) tiles that they used in the 50's and 60's. It works. All great stuff but the tile is plastic and put right on the drywall so its comming off. Plastic? I'll bet it's actually a thin Metal tin. That product done in that exact style was all the rage in the 50's. I'd be shocked if it was plastic. I popped it off in one kitchen, and the wall behind needed a bunch of scraping. Just understand that time is money. After further review, we are going to give what you suggested above a shot.
Certainly you know to replace the toilet seat. I like the spongebob seat
Comes off easy. BY CODE: That plug beside the mirror should be a GFI plug. It is VERY easy to switch, if you need walking through the switch, post back, certainly don't pay anyone to do that, it is very basic electric that anyone can handle. Brother is all over this.
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I commented above. You can either make this a VERY expensive and time consuming project gutting this bathroom, or you can follow the advice above. Put that missing tile back on with Waterproof construction adhesive. Works out of a Caulk gun. If you don't have one, buy a Professionals Caulk gun with the "bars" running down the side on opposite sides, a quality cutting edge, and a reamer attached to the gun. Don't buy the cheap one that has a solid single side. The difference is $4 or so, spend the $4. Anyway, construction adhesive will put that back in place. The three that are chipped can be corrected with Bondo (Not my favorite), or Architectural Putty. I use the putty. Just rebuild it so it is smooth, (you will need to sand either product down with a Sander, oscillating orbital is better), as you will be covering the whole room with Tub and Tile Epoxy paint. Oh, make sure the area is VERY ventilated. This stuff will have you remembering your college days/haze, trust me, knock you on your but kind of stuff. The Tub spout is one of the old screw on types. You might need to go to the local plumbing supply house. You will pay more, but you might have a hard time finding what you need in a big box store. You are looking for a Front end screw on tub spout. In a Rental, I would say DO NOT ACCEPT a plastic one, as so many retro fits are plastic, but in a flip, what the hell, they LOOK good, just never put any pressure on them. You will need to Caulk the back side once it is in place as it won't be self sealing. If the Handles are dripping/leaking, post back here, that style is an easy repair, but it is very old school, and I could walk you through it.
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What is this mess? Basement, with a strong mildew smell. Mildew, GOOD man.
Only concern here is the wall on the left hand side. Is that Mildew at the bottom? Keep the wood, paint the yellow door, and clean the carpet. Easily the worst carpet in the whole house. Is this Concrete underneath? If so, pull the terrible carpet, and just paint the whole basement floor in a Grey Floor paint. DON'T let the paint guy talk you into, tack on the extra for the Flooring additive that makes it non slip. First, you won't get water on it, secondly, it's a flip. Sure it's not much money, but every single penny counts in a rehab.
It's a basement, so don't worry about it, although the light fixtures suck. Will probably replace with the cheapos from menards. Also, the cieling is stained and splattered, so we're planning on putting in a new drop cieling. Do you have enough room? In Indiana, the Code for a basement Ceiling is 7 feet from the highest part of the floor. I would hate for you spend money, drop below whatever the OH code is if there even is one, and have some slackjawed home inspector call you on it, where the buyer tryies to beat you down $500.00 on the sales price over it. ***It's a freaking basement, I would get some Fender washers, screw up any sagging areas, and paint the whole thing with "Killz" paint, and be done with it. Be alot cheaper. After further review, we are going with your suggestion to paint the ceiling.
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OK, we all know it is Mildew now. Say it with me, it is never M#LD, it is ALWAYS Mildew. M#LD is NEVER even in your vocabulary. You don't know the word, practice NEVER saying it. EVERYTHING is Mildew. Period. What is the smell of the carpet? I would want to save the carpet. Say it with me, YOU NEED to install and provide a Dehumidifier. As big as you can get. The other choice is to spend a ton of money and time Fixing whatever it is that caused this issue. A big Dehumidifier would solve this problem just as well, and be under $200. Hopefully you have a Utility room, and you can hard drain it right into the sump pump or whatever. You DON'T WANT to take on the solve of this issue, you just want to keep it from happening. I couldn't sleep at night knowing I just make it look good, but it would happen again, I am not out to screw anyone. You can solve with a Big Dehumidifier for under $200, and it will stop the problem. Great idea
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Like I said, a Big hopefully Hard Wired but absolutely Hard plumbed Dehumidifier for under $200 solves the water issue. Hit everything with Bleach like you were a Ghost-buster. Screw back up the sag in the Ceiling with a Drywall screw in a "Fender" Washer and paint. Never know the difference. Get a Good gray floor paint for the Floor. It's a Basement, make it not look scary, forgettaboutit after that. Can you still advertise a "finished" basement without carpet? Does it really matter?
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I hate Vinyl Siding for the obvious reasons, but I LOVE the look of this house, GREAT curb appeal!!!!! Just needs a little landscaping, and we were thinking of changing the red trim to white, opinions?
Watch the branches touching the roof if there are any, they can tear up the shingles on the roof in a big storm. Some shingles need replaced, and some branches trimmed
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Very, Very nice Curb appeal. I think you did well here with the Property. I couldn't begin to comment on your price in your area, but the house itself could be a fast, cheap, and easy flip if you go about it right. We got it 25k below current appraised value. It sold 4 years ago for 10k more than current appraisal. We've got alot of room to work.
Mike Anderson
Footballguy
Here is my verbage straight from one of my leases:I don't do it because the accounting is a pain when you're pushing close to a 100 properties for others, but one good idea is to offer a discount if the rent is paid before the first. $575 before the first, $600 from the 1st to the 6th, $630 after the first. Paying the rent on time now equals two cases of beer.Personally I require rent checks to be mailed to my PO box. I guess a direct deposit would be easier but there's something cool about actually getting a check in the mail as opposed to a bill. I also don't mind going to the bank and checking up on the tightness of the slacks on the hot girl's tush...err...I mean building business relationships with someone who has money I need.See? This is why we post here. I like this "hole" a deadbeat tenant can crawl through being pointed out here. So many people don't want to ask questions because they might look stupid. I'll take stupid with still all my money left over having a bad property and tenant and less money and REALLY looking stupid.I guess Trumpy would fire me...1) As Mike mentioned, this is a horrible idea. Like he said, a $5 deposit by the tenant and your court case just got thrown out for another month.
2) Home warranties are pretty much a waste, especially on newer properties. I may do one the first year to cover anything the previous owner was hiding. The problem is you're getting stuck with a $50 to $75 deductible. I can get a service call for this price most of the time. Also read the fine print...there's a lot of stuff they don't cover.
3) Not sure want the point is here.
4) I pretty much agree with this statement.
Ask questions people. Info = $$.
I am starting to agree on the warranty. I've had one before (came with the house) and they were awful.
I will say that the first year in a house this can be VERY worth it. It is cheap insurance. Get service contracts in place for your HVAC for example. Found a cracked heat exchanger on my personal residence - would have been $5K IIRC - $100.
You WILL find out problems if they exist in a year more often than not. Will it be worth $300-400? Probably. For me, in my own house I sleep better the first year with that policy, knowing that I can work it to its full benefit for that first year.
Regarding (3) - if she's not local and a handyman bails on her (can't find them, deadbeats, whatever) she has a Plan B.
So overall, we:
1. Like new / young construction for the first 10 years
2. Don't like home warranties in general, but they can work out in the first year
3. HATE the auto-withdrawal option.
So on that last one - what do you think of this, BnB, Mike, or anyone?
Give your tenants deposit slips for an account you set up to receive rent. All they have to do is deposit the money into the account by the 5th.
Frankly for me chasing a $600 renter each month is a big Pain in the ###. I'll pass on that in favor of a commercial tenant that pays more per month and has longer leases, AND who has part of their business associated with their address.
One thing I do write into all of my leases is that certified funds are required after the sixth day of the month. This prevents a bounced check from sending my account into the red.
1. Rent Tenant agrees to pay Landlord as base rent the sum of $725.00 per month, due and payable monthly in advance on the first day of each month during the term of this agreement. If the rent has been postmarked by the United States Postal Service on or before the 1st of the month, a $50.00 rebate will be applied to the Tenants Rent amount. Should either the Landlord or the tenant be required to break the lease for any reason, the Tenant will forfeit their deposit. (Ex: eviction, or moving without 30 day notice.)2. Payment of RentMonthly rent payments must be paid with a check or money order. Time is of the essence and no excuses will be accepted. Rent shall be made payable to Hillside Rentals and sent by mail to Landlord at P.O.Box 10412, Fort Wayne, IN, 46852. Any rents lost in the mail will be treated as if unpaid until received by Landlord. All tenants will contribute in the payment of rent and only one single payment will be accepted. If tenant knows that rent will not received by the 1st of the month, tenant MUST call Landlord or face the immediate start of the eviction process. If any tenant withdraws from the lease, for any reason, the remaining tenants will be responsible for making up the difference in rent. This statement in no way releases the withdrawn tenant from the balance of the lease.3. Rental Collection ChargeTenant hereby acknowledges that late payment will cause Landlord to incur costs not contemplated by this Rental Agreement, the exact amount of which will be extremely difficult to ascertain. In the event rent is not received on the 1st of the month, regardless of cause including dishonored checks, Tenant further agrees to pay a late charge to Landlord equal to five dollars ($5.00) each day the rent is late. Neither ill health, loss of job, financial emergency or other excuse will be accepted for late payment. The process to evict the tenant will begin with the onset of the late charges starting on the morning of the 5th.4. Security Deposit and /or Damage DepositThe Tenant agrees to deposit with, and the Landlord acknowledges receipt of, $700.00 as a Security Deposit and /or Damage Deposit hereafter known as the Security Deposit. This Security Deposit is to guarantee the return of the Premises to the Landlord in the same or better condition as when accepted by the Tenant, reasonable wear excepted, and to satisfy any obligations of the Tenant unfulfilled at the termination of this Lease Agreement, as specified herein. Satisfactory compliance with this section includes removing all trash and belongings of the Tenant. If any provision of this Lease Agreement is violated, the Security Deposit is forfeited. The Security Deposit is to indemnify the Landlord against damage and/or loss of value as a result of the Tenant's action, mistake, or inaction during the term of occupancy. The Security Deposit may not be applied by the Tenant as and for payment of any rent due the Landlord. Should the Tenant be responsible for damage and/or loss of value to the Premises greater than the value of the Security Deposit, the Tenant hereby agrees to reimburse the Landlord for such loss immediately upon the presentation of a bill for said damage and/or loss. The Landlord shall return the balance of said Security Deposit, if any, to the Tenant at the Tenant's forwarding address, upon vacating, return of keys to the Landlord and termination of this contract according to other terms herein agreed. The deposit will be returned within thirty (30) days after the Tenant vacates the Premises, along with an itemized statement as to the deductions, if any, from said Security Deposit. The Security Deposit must be paid in full prior to Tenants moving into building.10. Legal ObligationsTenant hereby acknowledges that they have a legal obligation to pay their rent on time each and every month regardless of any other debts or responsibilities they may have. They agree that they will be fully liable for any back rent owed. They also acknowledge that defaulting on this Rental Agreement could result in a judgment being filed against them and a lien being filed against their current and future assets and/or earnings.The tenant recognizes that habitual late payment or failure to pay rent will result in a negative entry made on the tenant’s permanent credit report.I stopped arguing about when rent is paid. It's all about the postmark from the USPS. We Used to collect the full amount, then credit back the $50.00 to next month. At this point, I just have them send $50.00 less if it is Postmarked by the first. Know your state law here, this IS illegal in a number of more friendly tenant states like CA and the upper east coast. It's considered paying double late fees.I like going to the bank and talking with the branch manager on a Monthly basis. Every personal banker I see, Tellers, whatever, it's worth spending time regularly chatting up the place with the money to loan.
BassNBrew
Footballguy
Comments above...Here is my verbage straight from one of my leases:
1. Rent Tenant agrees to pay Landlord as base rent the sum of $725.00 per month, due and payable monthly in advance on the first day of each month during the term of this agreement. If the rent has been postmarked by the United States Postal Service on or before the 1st of the month, a $50.00 rebate will be applied to the Tenants Rent amount. Should either the Landlord or the tenant be required to break the lease for any reason, the Tenant will forfeit their deposit. (Ex: eviction, or moving without 30 day notice.)Do really understand how you breaking their lease would cause the automatic forfeit of their deposit. Acutally I don't like this statement at all because it gives the impression that the tenant can break the lease and is only liable for the security deposit....conflicts with your statement below.2. Payment of RentMonthly rent payments must be paid with a check or money order. Time is of the essence and no excuses will be accepted. Rent shall be made payable to Hillside Rentals and sent by mail to Landlord at P.O.Box 10412, Fort Wayne, IN, 46852. Any rents lost in the mail will be treated as if unpaid until received by Landlord. All tenants will contribute in the payment of rent and only one single payment will be accepted. If tenant knows that rent will not received by the 1st of the month, tenant MUST call Landlord or face the immediate start of the eviction process. If any tenant withdraws from the lease, for any reason, the remaining tenants will be responsible for making up the difference in rent. This statement in no way releases the withdrawn tenant from the balance of the lease.Enjoy your Playboy subscription Mike.3. Rental Collection ChargeTenant hereby acknowledges that late payment will cause Landlord to incur costs not contemplated by this Rental Agreement, the exact amount of which will be extremely difficult to ascertain. In the event rent is not received on the 1st of the month, regardless of cause including dishonored checks, Tenant further agrees to pay a late charge to Landlord equal to five dollars ($5.00) each day the rent is late. Neither ill health, loss of job, financial emergency or other excuse will be accepted for late payment. The process to evict the tenant will begin with the onset of the late charges starting on the morning of the 5th.This should actually be the 7th if you have a 5 day grace period. Rent due by midnite of the 1st, late after midnite of the 6th.I like going to the bank and talking with the branch manager on a Monthly basis. Every personal banker I see, Tellers, whatever, it's worth spending time regularly chatting up the place with the money to loan.Eye candy at your bank too...eh.
Ten Yard Fight
Footballguy
Congratulations Mike!I may have already mentioned that this will be my personal residence. I do have an interest in real estate investing though, and have read this entire thread. I've noticed so many FSBO sellers do a very poor job marketing their house. As of now, This Flyer is all I have to show you. I do have an appointment to look at this house Monday evening. We are searching 3 zip codes (46227, 46142, 46217) for a house that has either 4 bedrooms, or 3 bedrooms plus a place for me to work. Most of the neighborhoods we like have homes that are 25-30 years old. As always, thanks very much for your comments and advice.
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Jeff Pasquino
Footballguy
Depends on who you finance with, IIRC.This is a Fannie Mae / Freddie Mac rule I think.
Could also be HUD.
Jeff Pasquino
Footballguy
:CRINGE:
Ten Yard Fight
Footballguy
A friend just explained to me that the reason so many bi-levels are coming up in my searches is because they are hard to sell. This house, is obviously a bi-level. Anyone here have any experience with these?
Mike Anderson
Footballguy
Depending on my Loan, I have had to season a property for 90 days before refinancing at times. It would be when I bought in Cash because it wasn't capable of habitation at time of purchase, did some work, and Refied to pull back out my Money and say another $20K. Not bad for 3 months work/waiting. These are actually my favorite way to buy.Bought one 2 months ago for $18K, will refinance for $50K in a couple of months. Have one renter waiting for one of the Units at $500.00 a month, the place will bring a Grand a month in, have about $500.00 a month going out, and $20K in my pocket after expenses. It's my favorite kind of deal. Don't even need a down payment since I already own it.I paid cash. Maybe my realtor was
However, I SERIOUSLY don't believe there is a seasoning requirement if you are just selling it. Certainly if you bought in cash, and don't have a 2-3 no payoff clause in the mortgage.
Not a Lawyer or a banker, but I strongly believe your Agent is
Mike Anderson
Footballguy
They aren't exactly popular, but they do move out in Suburbia if they have a little land to them. At least around here anyway. It's a Style from the 70's-80's and one of the fears is that everything in the place is about to break down.Add that Americans ALWAYS seem to need the newest everything, and it's a harder sale.
Mike Anderson
Footballguy
I would always advise someone that if they are going to live in the home a long time, who cares? Beat the price down as hard as you can, stay 10 years, guaranteed that you gain equity. Just be in love with the house. If you need a new house as fast as you need a new leased car, don't buy an older style with a Mortgage, at the end of the day because of a number of factors, you most likely lose in the first few years.
TheGooRoo
Footballguy
First let me say that I am clueless...Ok now that that has been established, I purchased a $130k home in the metro Detroit area at the age of 18. I put $20K down and my mortgage was a 5 year ARM. My rate was in the neighborhood of 6.7%. My mortgage has been sold 3 times and I am now with Chase. I began paying aproximately $750 per month. My monthly payment has continued to rise and rise due to " a shortfall in escrow balance" and has somehow managed to reach nearly $1k (on a $110k mortgage) which includes taxes (does this sound right????). I just got a notice that my 5 year ARM has expired and that my new rate will be 7.85% and my monthly payment is $1,037 with $95,500 remaining on the loan. What are my options and/or what can I do about this? Thank you kindly!
Red Apples
Footballguy
Here is a hypothetical question that a friend of mine has.
he/she bought a house in los angeles last april for 1.1 million.
they own the house free and clear and it has appreciated to the 1.45 range.
he/she would like to sell it now & move into a different house that is listed at 1.5 million. (they would also buy this one cash)
question here is what is your advice to maximize profit on these type of moves.
he/she bought a house in los angeles last april for 1.1 million.
they own the house free and clear and it has appreciated to the 1.45 range.
he/she would like to sell it now & move into a different house that is listed at 1.5 million. (they would also buy this one cash)
question here is what is your advice to maximize profit on these type of moves.
Mike Anderson
Footballguy
First, the shortfalls. Are you actually sure of what you are paying out, and how it matches up? I can't tell you how many times my Escrowed taxes get double paid by the lender. Then IF YOU ARE LUCKY, you get a letter from the county that you have to come down to the office and prove a ton of stuff to get your money back, AND it causes a short fall. If you aren't lucky, you don't know that you over paid, and after a few years, the county just keeps your money.Also, on Insurance. Where did you get your insurance? 18 year old, I am guessing you just got whatever they gave you. I did the same with my first property. After MANY years I did some looking, and realized that I could get better coverage for $600.00 less, or $50 a month. I loved that I had Basement water damage insurance for my unfinished, river rock basement. Very nice.
When I got caught up in this, it was a number of years ago, with a 6.5% FHA loan, where my payment was $951.00 on a little over $70K. It was the biggest comedy of errors, but I had NEVER looked at it. I just did whatever they told me to.
I'll bet you can really knock it down if you start digging.
Now, let's say you dig, and that is really the case. Your taxes have raised in your local area year after year, they hit you with Sewer fees, School levys, the whole works. If so, you might really consider just sending them a check for the amount under in one lump sum, and getting the Monkey on your back down to where it should be.
Mostly, I would go after your insurance coverage. That is where you are most likely being destroyed.
Now, what can you do? REFINANCE or sell. You DON'T want to be holding long term in an ARM over the next number of years.
Ten Yard Fight
Footballguy
I gotcha. We looked at the house tonight and we're pretty sure we can rule out most bi-levels because they seem smaller than they are because of the lack of an "open concept." It's too bad because we like the .75 acre corner lot and the location. More about my situation, then one more question. I built a brand new (cookie-cutter type) house 7 years ago, but now am looking at 25 year old house because they are built better, and are in better neighborhoods with nicer people, mature trees, and aren't in the middle of nowhere.
The way things are going now, we might be able to afford a REALLY nice house in just a few years. (Knock on wood) The kind of house you stay in for a very long time, if not the rest of your life. In fact, many people in my shoes would buy that house now, and the mortgage company would give them the loan, but I'm a bit more conservative than that ...
We are moving because we want to have our 1st child, and we both want to continue to work from home. We need more space. I'm not willing to put off having a kid so that my next move will be into my dream house. We're going to have a kid and move to a house that has enough room for us. But since we are working towards our dream house, we could very likely be selling this house in just 2-5 years.
Do things in bi-levels break more often, or are you speaking of all homes that are 25-30 years old? What advice would you give based on the fact that I'm considering older house and might need to sell it soon?
Lastly, how much can I save by buying a home from HUD? I've looked at the ones for sale now and there isn't much there for us. I can stand to wait as long as a year, looking at every HUD house that comes on the market. You think it would be worth the wait?
Thanks!
Mike Anderson
Footballguy
Not saying Bi-Levels break down. Only that they haven't really been built in mass since the early 80s. Just about any of them are going to be about 30 years old.Now, lets look at 30 years old. With no upgrade, a Furnace will last say 30 years, if the water heater hasn't been upgraded it was on borrowed time years ago much less now, the most popular roofing shingle is a 30-year shingle, 30 years of the foundation shifting, 30 years of water pipes under pressure (Not as serious of a problem at all, but as another example).
Honestly, more people would buy a 40 year old house first, as the expectation is that all of these things already had to be addressed. Open up the Adds on Sunday, about everything from the Big box stores have 20-30 year guarantees.
When you think of a House breaking down, it's the ones built in the late 70s-early 80s right now.
Along with the fact that they are just out of style, it is another reason that Tri-levels are not going right now. 10 years ago, the late 50's-early 60's WWII houses weren't touched either.
Clearly, the first reason is that they are out of style, are you wearing HUGE bell bottoms as you type this? Secondly though, a home 30 years old is more of a time bomb than any other home.
HUD is a nightmare that you have to deal with from time to time. If you can buy a cheap home and fix it up, there are some deals for you, certainly as a Owner Oc. Just understand that HUD houses are repossessed from the biggest financial risks in the home buying market. The reason HUD gives great rates and incentives is that Home ownership drives the economy. From the Government's perspective, and homeowner is a good homeowner. They go after first time buyers who are certainly a greater risk, and they give loans to those that Banks won't touch as they are too great of a risk.
With that in mind, you are buying a home that was taken back from a Homeowner who could do very little to keep it up, and failed under some of the very best terms in the market. If they couldn't figure out how to keep the home, they couldn't figure out how to fix it.
So, with that in mind, lower your expectations on a HUD repo. If you can do the work or afford to have it done, there are some deals, just expect that you will be doing alot.
ABSOLUTELY get a home inspector, pay the $300.00, it could save you thousands and thousands.
Ten Yard Fight
Footballguy
Thanks. I am seeing a lot of 25 year old houses with new furnaces, water heaters, roofs, gutters. Maybe it's all the hail storms we've had.
Mike Anderson
Footballguy
ProNija or one of the guys would have to answer here: I know that in the next couple of years, we are going to have a Zero Capital Gain tax year. I also don't know every rule of selling and owner Oc, and deferring the taxes for a few years.I do know that you pay a FRACTION of the principal in the first number of years, and figure you have closing costs. Assume that you buy in cash, and you still have closing costs. If those closing costs are more than you can appreciate in a couple of years, or certainly if you have a mortgage, and can't barely pay anything down, and are out of pocket on the interest, and assume (No clue from me here) that you can defer the tax hit.....
Why not just rent for a couple of years?
Not saying it is the answer, but you would have no upkeep, and if you run the math, and can't see big appreciation why pay double closing costs and for the RE Agent on the selling side? If you can save more than that renting, you should at least consider it. I have no clue how the math works for you.
Mike Anderson
Footballguy
Hey, I just noticed you live in Greenwood. I lived on Priority Place. If you are on 31, South of 465, heading to Greenwood and Johnson County Line road. Pass Southport road, take the next left on Grube Street, South on Shelby, East on Stop Ten, and turn into Priority Place. I had a Town house in the dead corner of the complex. Due West about 200 yards is the Hooters there on 31. My Back window looked out on the back of the Greenwood Place Shopping center.
Mike Anderson
Footballguy
I see Random is in the thread. We going to get an Update?
Surely my Gross sewer story from today is not the thing to kick around tonight.
Surely my Gross sewer story from today is not the thing to kick around tonight.
Ten Yard Fight
Footballguy
Very cool. My brother just moved out of Priority Place after living there since 2001. I am very familiar with them. Did you know they were virtually destroyed by a tornado on 9/20/2002? That was the longest day of my life so far as I frantically rushed to load his stuff into a truck as the rain poured on us. The entire roof was gone. Very surreal being on the 2nd floor where you've been sleeping and looking up at the sky... Here's a few pictures, including the Galyans that was right behind you. Pier One Imports (Shelby and 31)
Galyans
The whole gallery
Ten Yard Fight
Footballguy
By the way, that's a very valid point about renting, I'll be running the numbers.
The_Pod
Footballguy
It may be a lender thing.... I'm an AE with a subprime wholesaler. We don't lend on properties listed w/in the first 90 days and still need 6m seller seasoning on title. We need a full 12m for a FSBO. That may be a little tight, but subprime lenders have funkier rules. Plus, for flip properties where you're looking at either FTHB or low/mid income with credit issues as buyers then these issues will certainly affect you.I paid cash. Maybe my realtor was
Mike Anderson
Footballguy
Wow, I lived in the Exact corner of the "L", tucked in the back. Backed up to the shopping center. I don't remember the address. I do remember that I had a Bird nest in my Dryer exhaust line, with chirping baby birds. Was my roof gone?
Mike Anderson
Footballguy
This is not something I can help the "buddy", him/her with. Not my area.
Jeff Pasquino
Footballguy
You owe $95K against a property that is worth $130K or more.Refinance it into a 5/1 arm or 7/1 arm, or something longer. Rates aren't stable right now (proninja?), so I can't say what's the best product.
You can get a new loan and lock up the payment to a fixed amount.
As for this neg-escrow business, sounds a little fishy. Ask for an escrow statement. Also, on a refi, you can request no escrow if you want to pay the taxes / insurance yourself.
One more thing - call Chase. Tell them you're going to refinance them out of the picture unless they adjust their mortgage to a better rate. Can't hurt.
Ten Yard Fight
Footballguy
The short row of condos that face East fared a little better. All of the long row facing North were destroyed, almost condemned. They ended up keeping the walls, but replacing everything else. They look nice now, I'm looking for a picture.
Mike Anderson
Footballguy
Actually that is a decent pace.PUSH yourself every single day, and really still expect to double your time line with the first rehab. After 10 years, I still run over. It's a fact of life.
The thing that slows me down the most is that I hold and rent, so when tearing something apart, if I see a better way to work/fix it long term, I take the time to make the right repair that I won't have to touch again in my lifetime instead of the fix that is right, but not as long term.
As an example, if I am tearing up a bathroom, I just go ahead and put all brass fittings in the wall for the water supply. Not needed at all, but I know I am never coming back with brass fittings.
Did you ever get a good dead on picture of your worst window to post or send to me?
How did you get the wall paper off?
Mike Anderson
Footballguy
Mine was the FAR West Townhouse, all the way on the end, the very last one, of the long building that faced north.
Ten Yard Fight
Footballguy
It might have not gotten the worst damage, but let's put it this way... If you still lived there, it might have been the worst day of your life. Though I know you've lived longer than I. You'd have been displaced for about 6-9 months.
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Mike Anderson
Footballguy
Please do, you may very well find that you can get a lot of house, in an area you want (To test and see if you really want to live there) with very little out of pocket, no upkeep to deal with, and save big on the two transactions of buying just to sell.Who knows, you might buy the rental you live in after a few years if it turns out to be perfect?
Or you could save up a couple of years, and buy the German Club building and grounds.
Mike Anderson
Footballguy
Absolutely! Take a few picture of good detail on your worst window, and either post them so everyone can follow along, or send them to me.
Mike Anderson
Footballguy
OK, I give?
I got it, First time home buyer.
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Mike Anderson
Footballguy
Don't let Jeff scare you here.He is going to make a great case in this thread once he sees your post here. ProNinja can lay out this school of thought in such a way you almost feel stupid buying with cash. Are they right? Yes.
However, what are YOUR needs. You are a first time flipper, who doesn't know how to manage a strict time line or budget yet. And you just made it so you don't have Mortgage payments that rock your available funds every month, each and every month, "dear god here comes another payment, how am I going to make it..."
I think since you had the means, you did FANTASTIC buying in cash!
Just understand that there is a very strong argument (That I don't follow even though I understand and can absolutely see the reasoning for, even agree with) to never buy outright.
Given WHERE you are in this lifestyle, You COULDN'T have done better IMHO.
Ten Yard Fight
Footballguy
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Mike Anderson
Footballguy
Please read my response to you, but I am going to disagree with Jeff here in the sense that I perceive that you live in this Home, have been here for awhile now, and plan on staying. You are worried about your monthly payment as this is where you live.If that is the case, I wouldn't not want to be in an Arm right now. I'd bite the bullet and go fixed. This won't be the advice of many in this thread, but then you are locked in and can budget. This is not the time to be in a long term Arm that is Actively moving.
If you don't live in the property, I will want to re-evaluate my response.
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Mike Anderson
Footballguy
This is EXTREMELY great advice from Mr. Trump over here. I should have thought of this.
Mike Anderson
Footballguy
Luckily I ran the Indianapolis Athletic Club with 112 Hotel rooms at the time. Uncle Mike would have had Maid service. I am sorry to hear your brother was in there at the time.
Mike Anderson
Footballguy
That is exactly what I use for Wall Paper. I am glad you rented? one. I wouldn't do it any other way, doing it the old fashion way with the roller with all the spikes and elbow grease is for the birds. The steamer is a boring job, but it sure works.
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