All Forum Posts by: Amanda Paugas

Does anyone have experience with owning/managing sober living houses? I’m looking at a portfolio of three homes, buying both the buildings and the business. Quick analysis yields a 16% cap rate, just wondering if anyone has experience with logistics In running these places, paying staff, rent collection, etc. Thanks!

Hello lenders! I'm looking to buy a duplex REO and I'm wondering if there are lenders that allow use of a HELOC as the down payment/rehab costs in conjunction with fix and flip loans? I just did a DSCR and tapped out my 401k. Exit strategy is to BRRRR. Thanks!

Hi everyone! I am looking to buy 8 units between 3 houses, all side by side. I have never done a commercial loan, so I’m wondering if this would qualify and what a typical loan might look like or require for this type of purchase? Purchase price is 750k, I have private money to use for down payment (how much does a commercial loan usually require for a down payment)? Buildings are all in good condition, no major cap ex anticipated soon. 
thank you for the help!

Amanda

Hi everyone!

I'm looking at a possible deal and was looking for some input on how others may handle this. 

The deal is.....

8 units, 3 separate properties (1st house- duplex, 2nd house- duplex, 3rd house- quad)

Asking price is 750K. 5 units currently rented brining in around 4350, 3 vacant that could bring in potentially 3300-3400. I have 100k in private money that I have raised, none of my own, but I do have excellent credit and a hard money commitment letter of up to $1M. I have done 5 deals in the past 6 years, including BRRRs and flips and am looking to scale. 

This property was on market for a hot minute, and then taken off and has not gone back on yet because the seller 'wasn't ready'. I'd like to see if I can still get this as an off market deal at this point, but I'm not sure how to structure this, or if it would work for me. I have NOT seen the property inside as the gentleman was not ready for showings and then took it right off the market. From my due diligence, it looks like this property could be worth 800-900 in good condition. Obviously, if this were to need a lot of work, that would be a no-go. If it is in good condition interiorly, and this truly is a good deal, how would you guys work this? What would your exit strategy be? One of my private lenders doesn't necessarily want to tie up his money for 30 years, so my thoughts were....

buy in LLC or my own name with hard money, refinance and hope that the equity will be 25%? Go for a conventional loan, but then I wouldn't have 25% OOP, try seller financing (although there is an agent involved who has a reputation in the area for kind of being a pain to deal with). Any thoughts or ideas would be hugely appreciated!

Thank you BP community!

Hi BP! I'm looking at an historic property that is currently being used as a town hall but will soon be vacant. My 9-5 job is a home care nurse so I have seen many of these older buildings converted into elderly apartments and I know the need for elderly housing is always in demand. I've only dealt with SFR/multi residential units thus far but would like to cross over into bigger things and commercial spaces. Does anyone have any suggestions as to where I should start as far as how to covert this? I'll be talking with the town planner to find out the specifics as to whether this can be used as residential living space. My guess is that they will be eager to use it as such. Did I mention this is also in an opportunity zone?! Looking for advice as to how to get this ball rolling! Thanks BP!

I have been burned by this exact situation before. Never again! I bought a condo from a woman who rented to friends, gave them a discount on the rent and had never asked for a deposit. I did not insist on getting one when I bought it either. Big mistake. They moved out 2 weeks ago and I am left with $3000 worth of damages! Are you having the new tenants sign a new lease with the rent increase? If so, put the security deposit in there as well. I would tell your new tenants that although they were not required to give a security deposit with the previous owner, you need to insist on one. Good luck!

I build it into my lease that the tenant is responsible for maintaining oil in the tank. They pick a company of their choice and sign up for automatic delivery (which usually includes a yearly maintenance check as well!). I deliver the unit to them with a full tank and from then on it is up to them to keep it full. 

I would have a professional tree company look at it. Even if you know what you’re talking about when it comes to trees, the tenants will probably feel better that a licensed professional rendered an opinion on it. They might be able to offer a different suggestion, such as removing a couple of branches instead of the whole tree. They would also be able to let you know if the tree could be diseased, in which case it would be best to take care of it before it causes more damage.

I factor landscaping right into the rent. I don’t trust any tenants to do the landscaping because it almost always isn’t a priority for them. I’ve also heard from a friend that one of his tenants mowed the lawn, kicked up a rock and it chipped the other tenant’s windshield. Not really his problem per se, since he didn’t cause the damage, but I’m don’t want to cause problems between tenants either. I have the lawn mowed every 2 weeks by an insured company so if they ruin anything, it’s on them. It costs me about $50-60 a month, so not a huge difference in rent and the tenants don’t seem to mind.

Hi BP community! I am looking to acquire a very large parcel of land, approx 100 acres. It is currently zoned as R-3 and I'm thinking of subdividing into 50, 2 acre lots for SFR's. Wondering what experiences others have had has far as selling lots to builders and what I might need to do ahead of time? (Sewer access, water lines, pave a roadway etc) I'm assuming I'll be going to the town as well for permits and approvals, any other steps there I should take to make this happen? Thanks!