All Forum Posts by: Adam Rees

@Brendan O.

Good question. Did you get an answer for it? 

I realize it's not how your supposed to do it (idk legality) but has anyone bought a second home to get the 5% down payment instead of the 20% down payment it costs for an investment property? I'd obviously rather do the 5% down and get the better interest rates. But at the same time, next year when I'm doing my taxes and need to claim ownership of a house that I'm getting an income from....and I get red flagged and in trouble...that'd suck. Any experience or insight in this?

NO WAY. I appreciate all the questions. Thankyou for the help! 

It's a commercial, zero lot, with two levels. The neighbors are psychologists.

The top level is built out completely. Looks very nice. The bottom level is more open but its done. Just looks....poor. But all construction is finished.

Rent here right now is going from 15/sqft to 23/sqft. In this location, $20/sqft is reasonable. 

The tenant and area is B+ level. It's across the street from a busy gas station, on a busy road, in town, and surrounded by other small businesses then tons of residential property for miles. 

The total mortgage for me would be $2,639/mo. That only includes taxes, association, insurance, principal, interest. 

The seller is suggesting that I by the building with my own financing and yes, I'll be approved. 

It's a great opportunity, but I'm concerned about that monthly cost if we cannot get someone in there right away. 

Does that help answer your questions? 

Thanks again. I really appreciate it. 

I have not cut my teeth on a buy and hold yet. But have good opportunity with an extremely motivated seller. on a two level 1938sqft top and 1938sqft bottom level and 3/4 of it is already built out. 

He has a place listed at 375,000 and contacted me begging to buy it from him. 

Realtor is offering to set up a 'contingency' in the purchase agreement that if I cannot get it leased within 30days....deal is off. 

I'm extremely skeptical of the contingency. Have no problem going to work on finding a tenant but cannot afford to be left with a $2,500/mo if it doesn't happen within the 30days. 

Has anyone heard of this contingency? 

And does anyone have experience and willing to help? 

number is 3194308317 and I'll be watching this forum like a hawk now. 

Thanks!

We're in Iowa City. Would be more than happy to sit down and chat. 

sounds good. Definitely do. Talk with you soon. 

likewise. Both of you. But I believe Matt mentioned that he was living in Japan at the moment. 

Where are you located in SE Iowa?

Also. What are "acceptable" margins to negotiate with commercial real estate? I have only negotiated residential property. 

I own a small business. We are thinking of changing locations and buying the new space rather than renting. 

Space cost is listed at $375k. I'm estimating build out at $125k. 

Does anyone know if it's possible (or even common) to have both loans under the mortgage? Instead of a $375k mortgage and a $125k business loan.