Posted by Philip on November 05, 2004 at 16:03:31:
Even Rodney Dangerfield had capital letters used for his name!
Buying with good tenant in place? - Posted by Philip
Posted by Philip on November 05, 2004 at 06:25:38:
When you buy a home that can stay in place, with a good renter in the home, aren’t you kinda buying a cash flow plus appreciation at the same time?
Does this change the worth of the home any? I mean, renters move sometimes, sometimes they stay forever.
But yet, there is no holding cost, and with fair warning to the renter, you can look for a buyer in the meantime.
Or maybe the tenant would like to L/O. They might “up” the yield tremendously the next time they have a lump sum of cash, if used as option consideration…say at tax refund time.
Or maybe rent to own, with a triple net lease to reduce maintenance time?
What think you really smart guys?
(You can answer too Steve! JK)
Philip
Thanks,
Philip
What’s wrong with Steve- WA? - Posted by Lin (OR)
Posted by Lin (OR) on November 05, 2004 at 14:53:26:
He’s doesn’t seem to be too much more demented, deranged, erratic, flaky, haywire, insane, kooky, mental, psycho, unbalanced, or wacky than any of the other MH investors I’ve met.
8-)3
(that would be three fingers drumming on chin!)
Lin
Re: Buying with good tenant in place? - Posted by Tony Colella
Posted by Tony Colella on November 05, 2004 at 08:49:26:
You asked, “When you buy a home that can stay in place, with a good renter in the home, aren’t you kinda buying a cash flow plus appreciation at the same time?”
Answer: Yes, when you buy a property with a paying tenant already in place, you are buying a cash flow.
Do you also get appreciation? I assume you are referring to a Lonnie deal. In that case, “appreciation” will be created by you buying at wholesale and selling (or lease optioning) at retail. If you do that, then yes you also get “appreciation.”
You asked, “Does this change the worth of the home any?”
Worth or value is up to the individual. But if you fail to remember to make your money when you buy, then the worth will change but not in the direction you would like it to. Buy low, sell high and carry the paper (or lease/option).
As you said, the tenant might bolt tomorrow so your “worth” just wet the bed if you paid extra for that tenant.
You wrote, “But yet, there is no holding cost, and with fair warning to the renter, you can look for a buyer in the meantime.”
Trying to sell a home to someone other than the tenant increases the work, decreases the appeal and should decrease your perception of value when you buy it.
If the tenant is paying, why would you seek to sell? In essence, every payment received from the tenant increases the number of total payments you receive. If you delay the sale and Lonnie deal the home starting a year from now, then you receive an added year of (rent) payments and you get the normal, full term Lonnie note.
If the tenant is bad, stops paying or the home needs more work than you are willing to do on a consistent basis (which I find is more myth than reality) then send them on their way and Lonnie deal the home. You will still likely have to make the repairs but only before and after the tenant and subsequent buyers move out (see, you still have to fix them to market them if they are in poor condition).
“What think you really smart guys?”
Having met many that post here I have found that “smart” is reflected in them all. It is the level of exprience or commitment that changes. I would take one hard working, “dumb” investor over a “smart” answer any day.
Tony
Re: Buying with good tenant in place? - Posted by Mr. Unforgettable
Posted by Mr. Unforgettable on November 05, 2004 at 08:47:57:
It looks like you answered every question you asked. And who is the really smart guy?
P.S. I dont think Steve can reach the keyboard from his couch. JKS
Re: What’s wrong with Steve- WA? - Posted by John Merchant
Posted by John Merchant on November 06, 2004 at 09:15:11:
Yeah! And besides all that, the guy’s always finding those great deals just before I do it! And he’s almost making me want to get off the couch.
8-)3 - Posted by Steve-WA
Posted by Steve-WA on November 05, 2004 at 18:08:29:
uh . . . thanks? I think???
deranged, erratic, flaky - Posted by Philip
Posted by Philip on November 05, 2004 at 16:12:02:
demented, deranged, erratic, flaky, haywire, insane, kooky, mental, psycho, unbalanced, or wacky…I have heard harsh words like that since, well,…late Monday night before the Presidential campaign finally ended!
And folks tell me he does it all from the comfort of his couch!
Wacky Yields…he gets 'em.
Insane Profits…he gets 'em.
Unbalanced…?
So, yes I guess he is MORE successfull than anyone else!
LOL
Philip
All, but the cheap shot at Steve! - Posted by Philip
Posted by Philip on November 05, 2004 at 09:27:41:
So, still buy low, make sure the tenant is good, keep the cash flow in place if the above are met, and listen to hardworkers more than “smart” guys!
Other passing on the chance to diss Steve, you are as clear and thorough as ever!
Thanks Tony,
Philip
Thanks and, - Posted by Philip
Posted by Philip on November 05, 2004 at 09:20:04:
Also thanks for helping me take a shot at Steve.
I meant Steve WA…just wanted to make that clear!
unbalanced checkbook… - Posted by Lin *OR)
Posted by Lin *OR) on November 05, 2004 at 17:11:35:
can’t keep up with all the deposits.
Lin
oh, philip, philip, philip - Posted by Steve-WA
Posted by Steve-WA on November 05, 2004 at 13:17:55:
u r killin’ me
Unbalanced because all those big numbers… - Posted by Dr. Craig Whisler CA
Posted by Dr. Craig Whisler CA on November 09, 2004 at 19:21:21:
…weigh more.