All Forum Posts by: Alan Bostick

I have been Contacting many insurance companies to try and find someone who will insure a Subject To purchase to mitigate the risk of the Due on sale clause, but to no avail. Can anyone suggest an insurer that offers this kind of package?

I live in NE Ohio.

How can you prove a tenant is the one smoking in the house? Without photos to prove it is the tenant smoking in the residence could the tenant simply deny it in court by saying it is a guest of the tenant? Is it legal to require nicotine tests in the lease? Even if this step is legal, could they not just say they use smokeless nicotine products? Are there devices that can be installed in a residence that can conclusively there was continuous smoking in the residence? 
sorry for the bombardment of questions , this post peaked my curiosity. 

@Tim Delaney

Good idea! I had also thought about finding traditional financing and seeing if he would finance the down payment, that would reduce at least some of his upfront tax liability. It is just that if the expenses are not accurate (which it is not due to management expense)l and potentially insurance at least) I may be hard pressed to get a lender to do %80 if it is not worth the firm 550k he is asking. Time to do some digging!

@Tim Delaney 

Another solid point! I’ll look into what kind of insurance I should be getting on the property. I had initially asked the seller if he would be interested in seller financing and he declined, but I was not aware of the tax benefits he could be entitled to. I’ll have to look into that have try again with him, perhaps because he is a DIY guy he is as unaware of the benefits as I. Thanks so much!

@Jonathan Greene

@Jonathan Greene

I know at least 2 of the rentals are service/ office related, several others are retail. 

What kind of rates should I be expecting to pay for managing this kind of property?

@Marc Rice I hadn’t considered management expense! Was planning on self managing at first, then down the road getting a manager down the road. Are commercial management more expensive than residential management on average?

Repost:

I have found a store front property that is FSBO in an historic district of town in the Greater Akron Ohio areas, asking 550k. Seller has 100% equity and is mom and pop owner. 8/9 units occupied. The basic numbers seller has provided without letter of intent is 95k annual rents, 25k annual expenses. From my knowledge the area Cap rates are between 12-15%. If I did the math right I believe this property is selling at 12 cap. Given if these numbers are accurate would this be a worthwhile investment? What other details should I be looking for in assessing this property? Should I decide to move forward should I use utilize a commercial agent when it is FSBO?

I have found a store front property that is FSBO in an historic district of town in the Greater Akron Ohio areas, asking 550k. Seller has 100% equity and is mom and pop owner. 8/9 units occupied. The basic numbers seller has provided without letter of intent is 95k annual rents, 25k annual expenses. From my knowledge the area Cap rates are between 12-15%. If I did the math right I believe this property is selling at 12 cap. Given if these numbers are accurate would this be a worthwhile investment? What other details should I be looking for in assessing this property?

Perhaps you could make a requirement to see their current living space to be sure they live up to the quality you would like a tenant to live with a pet. Per owners are not protected class. Maybe they will be dismayed by this request, which probably means you dodged a bullet. 

@Eric Bilderback

I agree with you. This is an age old law of the earth. Proverbs 18:16 “A mans gift makes room for him and brings him before great men”