All Forum Posts by: Alex Brandt

Oh, it's Old Town East. 

So one actually expired on 05/01 but the property management has been avoiding paper work and stuff that requires close contact with the tenant due to COVID. 

The other one is month to month and the property management was trying to get that unit on to the new agreement before COVID but the tenants were not very responsive. 

I'm hoping all this can be caught up when COVID ends

Thank you for replying! I was thinking since the general contractor would still be making a profit just from building the home  - I don't see why a builder wouldn't want to do this.

@Mikael Winkler It's been going really great actually, both units have been paying rent in full throughout this whole covid pandemic. The property management company has had to make a few minor repairs (plumbing and HVAC). Even with the repairs and property management fee I am still cash flow positive. 

Next step is to get them off of the old lease and into the new lease agreement when those expire. 

Thank you! It is in Columbus OH. I wanted a city in the midwest which has a growing and diverse economy but also has good cash flow for real estate. 

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $110,000
Cash invested: $27,000

Duplex in Columbus OH. The immediate area is being remodeled and close to downtown and the hospital.

What made you interested in investing in this type of deal?

Looking for immediate cash flow so I was looking for a turn key property with tenants already in place.

How did you find this deal and how did you negotiate it?

Seller initially had it listed for $160k, over period of time reduced the price. He was first under contract for $135k but the deal fell apart (never made it to appraisal or inspect).

He was then under contract again for $130k but that deal fell apart (never made it appraisal. This deal did make it to inspection so I got that inspection report for free.

I initially offered $115k, which was low ball. Appraisal then came in even lower somehow at $110k.

Seller agreed to reduce price.

How did you finance this deal?

Revolution Mortgage gave me 30 year fixed, financing 82.5k at 4.875%. No points and closing costs where 4k.

My PITI payment is $630/month while my gross rent is $1,370.

How did you add value to the deal?

None

What was the outcome?

Closed on 01/17/2020 and hired a property management company, Keller Williams.

Lessons learned? Challenges?

Finding a seller willing to negotiate, this house was the third offer I placed over two months. The previous two sellers were not responsive.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My real estate agent John Shannon was instrumental in finding this deal and being my eyes and ears on the ground since I am out of state in Oregon.

I bought two lots via cash in 2016, the one lot I built my primary home on financing the construction loan and hiring a contractor. 

Now I have the second lot and trying to determine what I can do with it. 

I recently learned about subordination, in that I can have a contractor use the equity in my lot to help secure financing on a construction loan. I would then place a lien on the property for the value of the lot. 

I would normally try and finance the construction loan myself, but my DTI is at 43% between my primary home and my investment property.

But besides the value of the lot I'd get back when the home is sold, I would like to get some of, if not all of the proceeds from the sale (after build costs, etc).

How would I structure this deal to have that outcome? 

I already have a plan/design in mind and would like to have some say in features/finishes.

Are contactors willing to have this kind of arrangement? 

Anyone with experience or suggestions would be greatly appreciated.

Thank you Tom, I agree 100% that I do not need to pay. This is my perspective:

General contractor files a claim on the subcontractor's insurance for the cost of the foundation to reimburse their expenses, in turn I dont pay anything for the foundation. 

The subcontractor my general contractor hired to do the foundation had 20 yards of concrete poured today (35 degrees all day and part of the concrete is surrounded by a 3inch pool of water - not acceptable at all). This is for a crawlspace foundation with a step down. The issue is that they failed their inspection on Friday, they came out today, fixed part of it, and poured the concrete. I found out today city hall was closed today and the recording said no inspections scheduled today due to the holiday. My build permit checklist has no sign off on from the inspector for the footings and stem walls. There is a section of the foundation that does not meet code and was poured with the forms being incorrect. The foundation is 72inches high and the permit is only for 48inches high, since the foundation was not engineered for anything over 48inches. What options are available to me? I am not going to pay for their mistake. I'm now stuck between the foundation subcontractor and general contractor. I don't want this to get to a legal issue, but given the money involved - it might. What kind of lawyer do I contact if I need to get legal representation? I have already gone ahead and taken photo's of everything.

Sorry, this was posted in the wrong forum.