All Forum Posts by: Alec Frasier

im currently trying to Refi a duplex I had purchased for 152k, appraisal was ordered and came back at Purchase price (152k) I'm certain the duplex is worth and will sell for 175k in its current market no problem. the problem is I'm using a PML with a 145k balance left on the duplex which puts it at 95% of its said value. Im looking for solutions or tips with moving forward with this problem. We are trying to rebuttal the appraisal and I would hate to sell because after appraisal it'll cashflow great. looking for tips or referrals in the event the appraisal doesn't go as planned.

@Simmy Ahluwalia

As is value- $175k

Amount owed- $147k

Rental income- $1,600/month

Any recommendations for a local bank or credit union that will refi a duplex that anyone likes to use or has had a good experience with?

Thanks in advance!

I’ve set up a business for buying homes and started running marketing with the expectation to get some small fix and flips/buy and holds going but had no idea I’d have something this large come to me. I was contacted earlier this morning by someone wanting to sell their 30 unit property. Asking $1.5m but I believe I could get it under contact for $1.3m. The problem is, I have $50k available currently with access to about $200k more. Has anyone else been in this situation and could shed some light on where I should take this deal or pull funding together? I’ll also leave the numbers down below. Thank you.

Numbers:

Property taxes: $18k/yr

$14,433/ mo : Current income with 7 vacancies

$19,026 : Fully occupied

$175,283/yr : current

$227,127/yr : fully occupied

$82,020: expenses (excluding prop mgmt)

$93,735 : NOI Current

$140,395: Fully occupied NOI

8% CAP RATE fully occupied. (Adjust for 10% vacancy and its a 6% CAP)

@Jen R.

thank you for the reply. I know it'll be stressful so its just a decision to find out if its worth the stress or not and how soon the courts are going to allow hearings for evictions.

@Stephen Tice

Thanks for the reply. the home would be purchased for a deep discount due to this. About half the 'As-is' Value. I've heard the courts are open to eviction march 31st so its a decision if its worth going through some frustration to acquire the property and cashflow nearly 600 a month after its all said and done. 

Ive had a seller contact me about selling their rental property located in canton ohio. Tenants have not paid since early 2020. I have tried contacting the courts to see if they're allowing evictions currently but have not received a call back yet and can't seem to find the information online. Is anyone familiar with canton and know if evictions are allowed currently or know where I can find this information? 

@Bruce Lynn

Thanks for the response. I haven’t done this with any of my offers. Just trying to figure out some ways to get offers out there sooner.

I've tried making offers on around 5 properties in the past 2 months that were HUD properties but banks are only allowing occupied offers before listening to investor offers. I'm offering cash on these homes, is there any way I'm able to make an offer as an investor along with the occupied applicants and not run into legal issues doing so? I understand occupancy fraud but since I won't be borrowing from a bank, is there any legal repercussion to say I'm going to occupy the home, buy for cash, live there for a month while we do repairs and flip the home or rent it out?

After a while of reading, constant listening to podcast, networking, and analyzing deals, I closed on the first property today. I don’t think I’ll find another deal like this again for a little while but I picked up the property for 82k. One side was rented out and one side was gutted (Duplex). Put in 30k to make the gutted side habitable and sold for 172k. Felt great being able to pick up the check after the stress and mistakes. It was an amazing learning experience and I’m looking forward to the next flip here shortly.

What do you guys find to be the most successful way of picking up off market properties?