All Forum Posts by: Alex N.

Hi everyone! I hope you all are having a great week so far. Wanted to reach out to the site for advice on how to handle this potential real estate deal. Here goes:

My grandparents own 7 unit (6 SFH and a duplex) and are finally wanting to retire and sell them off. They approached me first about buying them. I work in property management and have helped them with one-off issues from time to time. This is obviously a great opportunity and one that I definitely want to pursue, but I'm not sure how to best structure it so that it's fair and beneficial for everyone. They've floated the idea of financing the properties through them so I don't have to come up with a massive downpayment, etc. so I think that's the route that makes the most sense. I'm just not sure how I go about figuring out all the specific details. For example, some of the houses have a mortgage, some don't. Do I create a hypothetical mortgage and pay them back based off of that? How do we figure out the sales price for each house when I go to actually purchase in the next few years? This is definitely not my strong suit, so any guidance and thoughts would be appreciated. I figure you have to start somewhere, so here I am! Thanks in advance!

@Mindy Jensen, @Account Closed -- thank you all so much for your responses. It's greatly appreciated. I really pulled a bit from each of you and came up with a good plan I think. I'm definitely going to screen them for my own peace of mind. If they look good and would prefer to stay on a MTM, it makes sense for the time being. I do want to be sure to give them time to review new terms if that's the route we're going. Thanks again, all!

Hi Everyone!

I'm in the process of purchasing my 2nd multifamily (woooo!!) and had a quick question. One of the individuals is on a MTM lease? Am I able to immediately request that they sign a renewal? The lease specifies a 30 day notice from either party is required for the lease hold over.. If they opted to not sign a renewal, I would be able to just 30 day notice them, correct? Thanks in advance for all of your help - I love the hindsight and these forums are so great!

Alex 

@Pat McGrath I would pay $150/month total. After that year, I would move out and rent to somebody who would pay market. I just live for free currently. Looking at how you just worded your post, it really does seem obvious. Thanks! I'm going to go ahead and submit my offer tomorrow! 

Thanks for the replies @Jordan Thibodeau ! I appreciate it. I'm fairly far into the process actually. I've received all of the owner's financials and have done my due diligence. I guess I'm just looking for some more reassurance that it's actually okay to take a loss in the first year. It makes me nervous, but I'm also so excited about this! I can't stop thinking about it! 

Hello Everyone!

I'm a huge fan of this site and have been checking it regularly for a few months now! It's time for my first post! I'm hoping to get some honest feedback on a duplex I'm thinking about purchasing.

I work in property management currently and realize this is something I want to do long-term. I've come across a duplex that I'm thinking about purchasing. Currently, 1 unit is rented, so there's an open unit. I'm planning to purchase it with a FHA loan and live in the other half for the first year. With this plan, I would need to contribute ~$150/month to break even the first year. However, after the first year I can move out and rent the other half. By doing this, my cash flow increases dramatically and I have a 55% Cash ROI that first year. I've done a ton of research and really think this would be a great move for me. I'm 24 with little debt and a great job. I tend to overthink things at times and have read many times on this site that "your first deal is always the hardest, most nervewracking, etc", so I'm just looking for another perspective. Looking forward to hearing your feedback!

Alex