D-HI REI Journal

Congrats on your deal!! and thanks for sharing your steps .

Congrats on your deal..I'm sure it seems like a long time coming. The next one will be a breeze. I've never purchased a short sale but heard they try the patience.

Keep us updated when you rent it.

I am having trouble in picking a renter and getting a commitment from any of them that come and see the property. I would like to know your thoughts on this. Would you be comfortable with...

a renter that is on social security checks?

One that has parents(elders)that will live with him or her?

Someone young and is not established?

a mulit-family renter (grandmother, daughter, grankids, ect...)

someone older that looks like they may not be capable of the day to day maintenance.

please help.

Thanks

Yes.. Any and all. It looks like you are stereotyping here.. basing things on perceptions. I have only one pereception and see only ONE color. That color is green. Green as in can they pay the rent.

SS checks. LOVE them. The govt cuts them clockwork every month. Guaranteed. As long as the total income is enough to cover the rent, no worries.

Elders. Why do I care? Does it matter if it's a parent and kids or kids and a parent. It matters if they pay the rent and take care of the place.

Young and not estalblished. This is a tad more dicey. Gotta watch out for loud parties. Also, they MUST have the job/income to pay the rent. But I know plenty of people in their early 20s who are VERY rsponsible.

I am not stereotyping at all, I just am concerned that the rent wont get paid, or that the up keep of the property wont be done, and the house get ruined.

thx

I agree with Mark. They all sound good (depends on how young you mean by young, and if they have a steady job). You'll base more on their references than anything.

Good luck,

Rina

I like the SS check ones. I have my mother in my rental and she always has the check waiting for me. I know some say never rent to a relative but I have had no problem with her at all either.

for the input, makes me feel a little better...

LOL... your mom???!! I hope you are giving her a break...

would be my (silent) pick, while I also am happy to hear

"I'm handy"--yeah, less calls.
"I don't like to move"--less turnover and time lost for you

If you are REALLY worried about the rent, ask for 2 months deposit, and if you get that, it is likely required by law that you pay interest on the extra month's rent

If you are worried about potential damage to property or upkeep, visit their current residence and see how they live.

Do you plan to use an agency for reference checks? Does anyone have an agency they would recommend? I personally have never used one but am considering utilizing one for all future tenants.

Kate

I'm sorry to hear that didn't go as you were hoping Hazco. One thing you could do is possibly include a clause that *buyer reserves the right to attend all offerings*. While this may (and probably will) offend most agents, some diplomacy will go a long way to work around it. If not, then seek another agent that is more amiable to the idea. After all, as you stated, often times the realtor can "tank" your offer just by presenting it in a way that turns the seller off to the offer. If you have a great agent, they'll represent any offer as if it was there own idea.

Also, on a note about the realtor's stubborness in using one type of contract. In North Dakota, realtor's are restricted by law sometimes to use a certain type of form. If anything, their agency/broker may require it as well. This is one of the cons that people must consider when they think about obtaining a realtor's license. They become subject to a lot of "nuisance" regulations. I have a friend that decided to go that route, and she finds her hands tied at times when it comes to certain forms, or dealing with buyers that have forms of their own.

I agree with you. Things would be better a lot of time without realtors. Unfortunately, there are a lot of ignorant buyers which has made the real estate agent's profession a lucrative one.

LOL... your mom???!! I hope you are giving her a break...[/quote]

wmark1963 yes I am the amount I charge her is $300.00 less than the apartment she used to rent. Which covers the expenses only. I am one block away so if anything goes wrong she can call me. Which she has about a month ago I was asleep in the middle of the night and she called that the fire alarm was going off and her and my sister could not get it to go off. Got dressed and drove over to find that the fire alarm is hard wired into the house. They had taken out the batteries but the alarm was still making that little churpping noise. Put batteries back into the alarm and that solved that. Went back to sleep and just hoped that nothing else would go wrong. LOL

So its been over a year since I made an entry, and I am been dealing with BoA on a short sale for a YEAR and one month! They are pathetic, to say the least.

I raised my offer 3 times (which I will NEVER do again) and they would not play back nicely. Finally today 4-9-10 they sent it to final approval. If it gets approved, it then has to go to the secondary bank to get approved. The 2nd mort is only for 25k, so they might get a few K... So if it get approved by both banks I will finally close on my 1 year 1 month short sale. After all is said and done I will profit 15k. Doesn't hardly seem worth it, but hey, 15k is 15k!

D

Closing on my 2nd rental property tomorrow. 3/2/1...Cash flow $300.

Congratulations on your 2nd rental! Wishing you continued success.

Lea
SPR Property Solutions, LLC

Been a while since I post in my journal....

I have been dealing with several offers with s.s's and reo's. Back and forth with offers counters...ect. I just canceled one (s.s) that has been taking too long, and I just got one (reo) accepted.

The one that I got accepted, I submitted 6 offers. They countered on the first 2, then I said my third offer I said this is my final offer, and they turned it down. SO I said ok, forget you.

Then 2 weeks later they re-listed the house for what my last offer amount was for. I laughed, and re-submitted a new offer for lower, they countered, I countered, and they accepted. I ended up getting this house for LESS than what I had offered 2 weeks ago...LOL, banks are so messed up....

Now I have to start looking for a tenant...

D

Hahaha that is good stuff. It always amazes me on how they operate. Cant figure out why they are in trouble
Good to hear from ya D. I see you posting on FB, so i have an idea on what your up to lol.
keep pushing# 3 and counting.

Richie

I closed on my 3rd rental on 1-18. Rehabbed it and had tenants move in on 1-28.

Rehabbed it in TEN DAYS, by MYSELF! I am BEAT, both physically and emotionally! I had a few friends do a little, to try and help me out.

Ran into some major issues with the oil heater, and pipes. The house was a foreclosure, so everything was off. no power, no water...ect...so I could not test anything. I got a good price, so I went for it. The bank originally had the house winterized, but when they sent out the appraiser they had to turn everything on so he could check that it all worked. The heater (boiler) was in rough shape, bank had someone rig it so it would work just enough that the appraiser could check it off his list. (I found this all out after the fact)
So after the appraiser was done, everything was turned back off. BUT, they did NOT re-winterize it! (F'N A-HOLES!)Again I found this out after the fact...
So I take possession and of course the heater does not work. I ahve a heater guy come take a look. He says the front piece (burner) needs to be replaced. (about 700-900 dollars)I fight back and forth with the warranty company, my Realtor fights back and forth with the manager of the warranty company. They did everything in their power to get the claim denied. Finally my Realtor was able to get them to cover it. SO, out comes an heater company that works directly with the warranty company. They install the part. Fire it up, we wait for it to get hot, we then go around and check the rooms to see if the base board pipes are getting warm. We go up stairs and one of the bedrooms is full of steam and water covering the hardwood floor! A floor that I just sanded down but did not have time to seal yet!!!!

Run down stairs and turn off the water, and shut down the heater. Heater guy says, well you got a busted pipe (really dude!?!?!) But the heater works, so I am out of here. We cant fix the pipe its not covered. I called the warranty company, they said they will not cover the pipe, or the damage, even though this was all caused by the bank NOT re-winterizing it. I mentally gave them the finger, because warranty companies are FRIGGEN WORTHLESS! Banks and warranty companies and appraisers that work for the bank are very SHADY. They do just enough to get by, they don't care about what could or will happen in the future.

So me and my buddy fixed the pipe. We turned on the system fired it up....and, YUP ANOTHER busted pipe! Thankfully it was in the same room. WE shut the heater down, fixed that pipe, turned the heater back on fired it up and crossed our fingers. Feewwww, no more busted pipes. BUT now the heater won't kick back on by itself. It runs, reaches the temp, turns off. Then kicks back on, fires up...then kicks off, and wont restart unless we primed the oil. So we figured out that somehow the oil line was getting air in it.

I called the heater guy that I first called, he came over took a look. His news was so disappointing. I, being a 40 yr old man, wanted to cry. First of all he said, the burner was not installed correctly. (hmmm imagine that, a heater company that works directly for a warranty company doesn't know WTF they are doing...hmmm)Then he goes on to say this, that, the other...ect...all need fix, or replaced.

Meanwhile I am rehab deep, up to my eye balls with general contracting work that I need to do. I rehabbed this house for 10 days with NO HEAT!!!! I had 3 little space heaters....

So I tell my heater guy, do it, do the work. Cause I have tenants moving in tomorrow...So he gets started a day after the tenants move in. He finishes up and gives my the bill....$13-FIGGEN-hundred dollars!! I almost jumped off the nearest bridge, this house was killing me inside and out...

I came to grips with the heater and said F it, it is what it is...I can't do anything about it. The tenants need heat!

So my advise would be first: When buying a foreclosure make the bank do whats right.. by writing demands in your offer. Like house must be winterized up until I take possession. (when applicable) Heating and air must be up to code and in working order...ect.

Also DON'T EVER BUY a warranty yourself. If one is bought for you from the seller, fine. But don't spend your money on a warranty, CAUSE THEY WONT HELP YOU, when you need it! They steal your money. The agents are trained to listen for key words, that triggers a denial of claim. Trust me...the key word that got my claim denied originally, was -lack of maintenance-. Heater guy mistakenly said the faulty system could have been caused by a lack of maintenance. Man, what a crock of sheet...F'N crooks!!!

Anyway...in the end the house is done, the heater is fixed, and the tenants are enjoying the hard work I put into the house!

I now have 3 rentals giving me a positive cash flow of 1K a month. Not bad...
Hard work does pay off..

D

Way to go Daren, That really sucks about the idiots not winterizing it again, but you know they wont take on the expense of paying again to have it done. I am curious on what part they told you to get replaced so it stays on. I know a little about oil burners and usually when it fires up and shuts down before reaching temp its because the cad cell is not reading the flame and shuts down the boiler. Any way good luck, i am 2 properties behind ya I have a duplex with one side rented and finishing work on the other side this week. I have run into my share of problems like you but we seem to find a way to get around them. good luck.
Richie

Congrats on your duplex!
Well after the burner was replaced by the warranty company (the front piece that bolted onto the front of the boiler) it turned out reason for it not coming back on properly was that there was air getting into the oil line. Thats why I had to prime it every time to get it to run.
Oil line was on the ceiling. So my guy replaced it and ran it on the floor. He said many other little things needed fixing or replaced ( I was thinking well how did it work for the previous owner??) but I was over it, so I said just do what you need to do to make it work and be safe...

D