All Forum Posts by: Adam Palace

Thanks for all the responses. Luckily the one is a M2M now and will expire in about 2 weeks. I had read through the other lease and planned to keep the terms essentially the same anyway. This was a good first "seminar" and I will definitely be getting up to speed on PA's landlord-tenant laws going forward.

I am getting ready to close on a triplex that currently has two tenants that wish to stay. Prior to closing I sent my realtor the rental application that I currently use for the existing tenants to fill out and return prior to me sending out my lease for them to sign. I received the following response from the Seller's realtor: "per PA law, the new owner has to accept the current leases until they expire. Once ownership has been transferred, the buyer can then mail the applications and work directly with the tenants as the new legal owner of the property, but unfortunately not any time before closing. He can then also give 30 days notice to vacate to them if he wishes at that time." One tenants lease does not expire until December 2017. When is my first opportunity to have the tenants sign my lease...at closing? December? I thought the previous owners lease would be void once the property transferred ownership. Am I wrong?

@Paris Beitel

Thanks for the reply! That option be the way to go to minimize upfront costs, however that was not a realistic option for me and my family of 4. 

The seller and I were able to agree on lower sale price than what I previously advertised and in addition they agreed to make the fixes that I had identified would need done immediately (most of the $1000 I had budgeted). 

@Mike Mcgallis realtor commission was paid by the seller. 

Thanks for the input Anthony. I think the seller assist option is a good one. 

Do you recommend asking for seller assist with the initial offer, or is this a negotiating chip that should be held onto and used if a reasonable sale price cannot be agreed to?

Thanks to everyone that posted. I appreciate the feedback. 

Hi everyone. 

I am a new investor from the Pittsburgh, PA area and have been actively reading the plethora of information on BP for the last few months. However, I believe I am ready to make the jump and put in an offer on my first deal.

Details of the deal as follows:

- Purchase Price: $74k

- Triplex ($675,$575,$450) - All Units have been remodeled and 2 are currently rented w/ long term tenants

- Cash Outlay: $23,915 ($18,475 down/$1000 Repairs/$4440 closing costs)

- NOI: $8,783

- CoC Return: 21.8%

- Cap Rate: 11.7%

- Monthly Cash-flow: $434/month

Based on these numbers, I believe the deal make sense for this area. However my main concern is tying up $23,915 for this one investment based on a 75% LTV mortgage and associated closing costs. I plan to try to negotiate the deal to get seller financing of the down-payment. however if this is unsuccessful, does anyone have any other creative financing strategies for this deal?