If you’re doing the work yourself (or managing the work), what you’re looking for is called a hard money lender. If you have substantial equity in the property, a hard money lender will fund a short term (12–24 months) loan to cover the rehab costs. The interest rate is above market, but that’s ok because […]
What is better between buying and renting when the monthly rent is roughly twice the mortgage payment?
It’s a function of how long you’ll be in the property. If you’re in the property long enough to cover the selling expense, then you’re golden. Simple math, no appreciation in the property: $100,000 house/ $500 per month mortgage / $1000 per month rent / 10% or $10k in selling costs You will recover the […]
Are foreclosed homes usually run down?
Generally speaking, most of the foreclosed homes that I’ve been involved with have a lot of “deferred maintenance” items. The financial circumstances that lead to foreclosure don’t leave a lot of money for niceties like repainting (resulting in wood rot) and roof replacement (leading to leaks and interior damage). Home owners in financial straits that […]
Can I sell my home if it’s about to be foreclosed?
Until the gavel drops, it’s yours to sell. Keep in mind that to deliver clear title to the buyer you’ll have to pay off the mortgage and any other liens (usually from the proceeds of the sale), so you have to have at least a little bit of equity above the balance of the mortgage […]
What does “subject to Alabama Right of Redemption” mean on a foreclosed home listing?
In Alabama, there are two types of redemption. The equitable right of redemption is the right of the homeowner to pay off the loan plus the fees that the lender tacks on for processing the foreclosure. The homeowner has the right to pay this off right up until the moment the property is sold at […]
How do I look up what bank owns a home that’s foreclosed on?
It’s about the easiest thing ever to look up the owner of the property in most counties in the US. Most counties have their deeds and records in a searchable format online and you can generally search by address. In the market where I work, you can look here: How to Use the Baldwin County Parcel […]
How accurate are online real estate services (such as Zillow) for estimating a home’s value?
They *can* be remarkably accurate, in the right circumstance. In areas where the homes are homogenous, you’ll find that they can be remarkably accurate. In the real world, where I live, the homes are not very homogenous, so those services are a lot less accurate. They tend to average the price per square foot of […]
Quick Tip – Screening Tenants
After you’re done meeting with a prospective tenant, walk them out to their vehicle and eyeball the interior. If it’s relatively neat and tidy, that’s a good indicator. If it’s got fast food wrappers up to the windows, that’s probably what your rental will look like after they move in.
How do I find good contractors and subs for rehab/remodel/repair?
If you’re looking for good subs, start hanging out at HomeDepot/Lowe/Whatever drinking coffee when they open. I’m talking about 5am open, not 7:30 when it’s easy. Keep at it long enough and you’ll start to notice the same guys and companies getting an early start. While this doesn’t speak to the quality of their work, […]
Is it better to rent out a property as an Airbnb/short-term rental or long term rental?
The short answer is “maybe”! Done well, managing long term (6 month + lease terms) rentals can be something less than a full time job, depending on how many doors you’re renting. Still, the time commitment is a lot of hassle. If you’ve got a property manager doing a good job for you, then […]