All Forum Posts by: Alex Johncock

This is a good question. I'm interested as well.

That's a good question @George S

I put another offer in for $58,000 to which the seller countered with $62,000. I then offered $60,000 yesterday and the seller said they're sticking with $62,000. I really want to stick with my numbers, but I'm wondering if $2,000 is worth losing a property over. My target was to get the place for $60,000.

Any guidance would be much appreciated!

Also, here is the property description.

Built as a duplex ($650 + utilities per side per month) and has gas high efficient furnaces (2). Townhouse style with full basement (shared 1/2 and 1/2), 1 1/2 baths, formal dining room open to the living room with open stairway to the bedroom level. 3-bedrooms on the south unit and 2-bedrooms on the north unit. Has a history of good tenants (approx $650 per unit per month). Both units are rented through July 2014. Great front porch and very light and airy. Per seller tear off roof in 2004. Furnances were replaced in 2005, outside painted in 2010. Upstairs attic and basement perfect for... storage. Washer and dryer on site included.

@Jordan Thibodeau we must have been posting at the same time. New update and pictures now.

The wood floors don't look as nice as in the picture anymore. They need to be refinished, but I don't think I'd have time to do it before trying to get new renters in because of the vacation situation.

Here's an attempt to post some pictures of the place...

Thanks @Jon Lafferty !

The deal is progressing, but slowly. I submitted an offer for $55,000 and the seller came back at $63,000.

I had my real estate agent tell the seller that I would be happy to counter, but not until I get some of the water bill history. Although they haven't sent me actual bills yet, they did send me some estimates.

Also, I've started calling on insurance companies to get prices on insurance for ensuring it for cash value. The first quote came back at $680/year, but I'd have to add an umbrella policy onto that which should be roughly $120/year for a round $800/year estimate. This was under my $1,000 initial estimate which is good news.

Also, I've updated actual price of trash, and the single bill estimate for water/sewer from the owner.

Here's the latest spreadsheet update if you care to look: https://www.dropbox.com/s/g6n2w6ry02hrzeg/412%20Woodward.xls

Right now, I'm waiting on the seller to give me actual bills and trying to decide whether this is a good idea for me.

Unfortunately I have a 2 week trip to Europe planned right when the current tenant's lease is up, so I'm a little worried about getting it rented for the first time with a trip that may overlap part of that time.

Also, due to my inexperience, I'm a little worried about turnover costs associated with this property. It's in an area that tends to be mostly student renters which I'm a bit wary of. This also means that it will likely be difficult to get any long term tenants in.

Because of the fact that I'm already a full time engineer, and do medical sales on the side, I'm struggling to decide if another venture is what I need right now. On the other hand, I think it's a good time to get into the market right now, and I'm afraid I may miss a good opportunity.

Sorry for the long post. Any words of inspiration would be appreciated!

Yes, this would be my first property.

I'm just trying to minimize the chances of buying a big mistake. I feel like there's not much choice other than to jump in at this point though. I'll try to do a bit more research before I counter back though.

Thanks for your input @Account Closed

Thanks for the input @Henry R. and @Bill Sargeson

Good call Bill, on the gas meter number. Can you just call the utility company and get the history? Is there any way to get old Water/Sewer bills that anyone knows of?

Also Bill, the rent has been verified. It's currently occupied and only about 5 houses down from my girlfriend's house, so I drive by it nearly every day. When going through it, I spoke to tenants on both sides so I know the rent is accurate.

Maybe it's just because I'm an engineer and a numbers based person, but I just don't understand how someone can own a property like this, and not at least have a simple excel spreadsheet of month over month expenses....

Thanks @Simon Campbell . I already put in an offer at $55k and the seller countered at $63k.

I'm just a little spooked at this point because I know that the difference between $200 and $0 cash-flow per month could be one little error in assumption. I'm not sure how to mitigate this concern though without seeing a full P/L sheet from the current owner. After asking 4 times and getting nothing, I'm assuming that I'm not going to get any more info from them.

Not sure what to do here...

And as far as investigating further, I'd love to but I've been bugging the seller for more detailed info for weeks. I can't seem to get anything of them.

I find that the most difficult aspect of analysis is obtaining the numbers. If anyone has any magic solutions, I'd appreciate the help!