All Forum Posts by: Andrew Graziano

Hi BP, I'm submitting and offer on a HUD duplex this week, but I'm very unsure about the stipulations on buying the property. Does anyone have experience with it that wouldn't mind a quick call tomorrow?

Welcome my friend. Please reach out if you ever come a bit west to Buffalo to invest!

Hi guys, getting back to you on this. The guy who is selling is elderly and from about two hours away. I'm looking for him to prove the income, if he can I'm going to take it. There are other people who have put offers in as well so I'll get back to you guys with what happens.

Larisha Norman, Don't get discouraged. Believe me there are properties in your price range in buffalo. You should "drive for dollars" around neighborhoods that you know might be in your price range and write down addresses of building that look abandoned, run down, etc. There are plenty of properties that need a lot of tlc that are still relatively livable. Keep looking!

@Brandt Smith Thanks for the input. If it all checks out I think I'm going through with it.

Hi BP, I'm analyzing a deal right now for a property. It's not exactly an ideal neighborhood, but the numbers seem too good to pass up. I've already been shown the house so I have a decent idea of what the property needs. The deal: Duplex, upper lower in (c- or d neighborhood) $40k Rents at 800 and 775, utilities included. Seller has provided documents showing that he nets $975 a month after utilities, insurance, taxes, etc. Mechanicals look good. It just got some new electrical. Roof is semi recent. No real large expenditures except possibly the detached cinder block garage which might need some maintenance in the future. I offered $36k, 20% down, seller financed the balance at 5% interest, 15 year amortization. He came back with $36k, 25% down, 5% interest, 15 year amortization, 3 year balloon. I got him to push it out to 20 year amortization so the cash flow is a bit better. I could get this property traditionally financed but it would mess with some of my other prospective ventures that I'm working on. The 3 year balloon isn't a problem in my eyes. Do you guys see any problems with this, aside from the neighborhood? I don't see any real opportunity for appreciate in the next 5 years but buffalo is really doing well right now so I could be wrong. Please let me know what you folks think!

Lucas Cellino I'm a local buffalo guy as well. Always interested in making new contacts. Inbox me if you want to exchange info.

Mark, I had a similar experience recently. The mortgage company didn't write it off like one might suspect, it was sold to a private note investor that used Kerrington, an alternative investment manager (read mortgage servicer). I contacted them and went from there. They were sketchy as well. They were holding insurance money due to the previous owner of the property even after the total sum of the mortgage had been paid. If there is no lien recorded, you should be able to get title insurance. That's what I would do.

We currently have a 14225 rental. It's a nicer duplex on a street full of single family, post war housing. We're a bit closer to Genesee than I'd like, but even so, it's a decent area. The tenant pool is slipping a bit. That said, I could be biased because I just had a nightmare eviction for this property. I just believe there to be better neighborhoods with better deals out there. I wouldn't look at this neighborhood twice if we didn't already own it for years. Definitely won't be buying any more in this neighborhood unless it's an absolute grand slam deal.

Benjamin Katz Nathan Mansur Dima Tupchik Benjamin and Nathan are right. The numbers make sense and there is money to be made on the deal. That said, Dima, Nathan is right. There are better properties elsewhere which is why I'm still looking. That said I offered $58k with the same terms mentioned above. I did some research on rents in the neighborhood and there is enough demand to justify an offer. The seller probably has twenty offers with low credit would be investors and homeowners so I'm sure that my offer will be overlooked.