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    shana467's Avatar
    shana467 Posts: 5, Reputation: 1
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    #1

    Dec 19, 2007, 06:01 PM
    Buying rental property outright with cash
    [Hi. I have a few questions I need some insight into. I have an opportunity to purchase a multi-family 2 unit house in Pennsylvania. The asking price is 73k. I offered 55k cash settlement. I have no job so I could not find a lender to offer me a mortgage. I tried to look for a no income loan. The house is fully rented w/ a 765.00 month positive income.

    1. Are there any lenders that may entertain this investment transaction?

    2. If the offered is accepted, what advice would you give me? (Also, being this is a rental property) I never purchase one before.

    3. what closing costs would apply to a cash settlement offer? I'm thinking about using the title ompany for the closing.

    4.What costs can I ask seller to pay?

    I appreciate all responses and additional info. I may not have asked. Sincerely alan
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #2

    Dec 19, 2007, 06:12 PM
    If you make a formal offer, you have to include who pays for closing in your offer.

    Make sure you get a home inspection. Also if you have no money left, what do you do at 2 am when they call and you find that the heater is out and you need 3000 tonight to pay for repairs or updating.


    If one tenant knocks holes in the walls and leaves it will dog droppings everywhere, what do you do, and this is after two months of not paying.
    So if they don't pay and you don't get rent for 3 months how are you then.
    shana467's Avatar
    shana467 Posts: 5, Reputation: 1
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    #3

    Dec 19, 2007, 06:29 PM
    Did u have a bad experience with renting? Sounds like it.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #4

    Dec 19, 2007, 06:42 PM
    No normal, I have owned rental houses for 30 years. And I know dozens of people who have them, and we get tons of landlords on here every night, some states take up to 3 months or more to evict for various reason.

    But if you are going to rent, first find out all of the eviction rules for your area, and if there are price controls and the such.

    So if you have two renters, this group may be OK, but then it can change on a layoff and so on. Also if you fall for sob stories real easy being a renter is not for you either.

    But just go back over this site for the last few months and you will see how much renters often destroy property and how hard it is to evict at times

    Too many land owers just figure for it being rented all the time, and don't figure on loss rent between renters and what happens when the sewer backs up, or a storm blows a tree over and so on.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #5

    Dec 19, 2007, 07:14 PM
    What Chuck is saying to you is you need to go into being a landlord with eyes wide open. You need to understand all the ramifications of being responsible for maintenance and repairs, of being able to survive without rental income for several months if a tenant stops paying while you have to go through the eviction process. Right now the house apparently has two tenants. How long have they been there? When do their leases expire? You need to know how to screen new tenants if the existing ones move.

    This could be a source of income or it could be a nightmare.
    shana467's Avatar
    shana467 Posts: 5, Reputation: 1
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    #6

    Dec 21, 2007, 01:42 PM
    Actually , I have owned a residence in which I rented it out. So I have had room mates and also tennants. So I've seem some good and bad. Honestly, I was thinking of living in house. I thought that would be a better idea. I know from past experience, when a judge issues an order to have sherriff go and lock door, tennants move out rather fast...
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