Getting ready to make first offer...

[Tom Chen]

Hi Everyone, So I'm getting ready to make my first offer. Seems solid enough... 3 units $700, $700, $500 Asking - $42,000 Taxes around $3,000 Separate utilities Currently fully occupied, but I need to get rid of the first floor tenant because he seems to be a nutcase. Question is... Should I start renovations unit by unit, or kick them all out, and renovate the whole thing at once? Problem is, between down payment, closing costs and reserves in the bank, I won't have much to do a rehab.

[Christopher Morin]

@Tom Chen the banks will not check your reserves after closing. A risk though, if you miscalculate and use up all your reno, and you're even cash flow with one unit vacant, puts your in a sticky situation unable to get the unit up and unable to fund the rehab. Compounded by other CapEx things that might come up and suck up those reserves. Investors are allowed to make calculated risks, just be smart. Good luck!