Investors in Johnson City NY?

[Reh N.]

Hi BP community!

Excited to see all the information I’ve taken in over the course of a few years on real estate. Currently, I’m in college and will be graduating this spring.

I’m new to this so I’d appreciate the patience when you read my questions.

I’m looking to purchase a property upstate NY and just curious to see how everyone feels with taking on a property with paying tenants? How do I know if these tenants are in fact paying? Do you think a LL would lie to sell the property? Because the sellers agent said Financing is available I’m assuming that they are paying. (Might be a dumb question - sorry) Anyone have any advice on this? The rent is not market price and and I’m assuming it would be due to the condition (did not see it yet - walkthrough will be this following week). It’s a 3 family home and With 20% down I’m looking at $700 cash flow after all expense. The numbers will be more accurate once I see the property with my contractor. Expenses are all separate, water sewage(I pay) Is factored in expenses.

Sellers agent listed water and sewage $2,100 - is there a way I could check what the bill has been the past couple of years?

This will be my first deal and to be honest, I’m a bit freaked out. Would love to hear some insight from experienced investors in the area and any advice would be greatly appreciated!

[Kelly Skeval]

@Reh N. This is so exciting!!!  When I write purchase offers for investment properties I give a list of due diligence items I need.  One of those items will be a copy of the water/sewer bills to verify the cost. Here is the list I used for a recent 8 unit purchase in Ithaca. This will help you verify the numbers you've been given. I usually give the seller 7 business days to provide items.

1. Any Permits and Licenses
2. Certificates of Occupancy
3. Existing Surveys or Environmental Reports
4. Gas bill for the last 2 years
5. Property tax bills for the last 2 years
6. Copy of current insurance policy and binder showing premiums and coverage’s
7. Any drawings and maps of the infrastructure and size of lot
8. Any Contracts that will be transferred to buyer at closing
9. Signed Rules and Leases for each resident
10. 2 years Tax Returns
11. 2 years Profit and Loss
12. List of Capital Expenditures for the last 3 years
13. Listing of any current problems (water, sewer, gas, electric)
14. Rent Roll with specific dwelling number, name of resident, move-in date, monthly rent, amount of deposit held, current balance, additional charges, number of occupants, and a brief history of the resident (good resident / bad resident, special circumstances, etc.)