All Forum Posts by: Jeffrey Honaker

@Anna Granofsky

Do you have to keep those tenants? Typically when you by a new property it is a good idea to empty it and get tenants under your guidelines, rules and other nuances that you may have for your properties. These tenants are use to one way of leadership and it is hard to make a transition. If the tenant is responsible for the damage then I would absolutely let the company know they are responsible before any repairs can be made. It sounds like to me that this organization pays the tenants rent for them? I know that sounds amazing also but it comes with things like the current situation where they are trying to tell you what to do and when. And for me, the whole reason I got in to real estate was to get rid of anyone telling me what to do ever. But when there is a transition in ownership I always assumed I was going to be responsible for every repair and debt the house may have incurred under prior ownership.

@Dennis M. I hope that to be true. I made the offer today but offered 65k. I’ll wait to see what they come back at me with. That 100k is what they hope to get but we will see very soon. 

@Jonathan Johnson I structured the lease purchase though a real estate lawyer in the area by the name of George Metz. I used his lease purchase in particular and it was free. I can share a copy with you if you would like. I dont think Ill ever go back to buying property any other way, I love this method. The only difficulty is convincing the seller usually until you point out the perks to them as well. And to be more detailed, I just tell the sellers exactly how it works and what their responsibilities are. WE hammer out a purchase price and a down payment plus a reasonable interest rate that we all agree too. And lastly the monthly payment as well. Ive learned that most banks and quicken loans to be precise try to figure out a way to make you monthly payment close to the same amount you were already paying. The mistake I did the first time was I gave the seller the down payment through my personal account instead of my business account. If I had done it through my business the way I had structured the deal I wouldn't have had to pay any closing cost and would have made back 800 bucks I do believe if I had used the right account. Excited to do it on this deal currently and learn from my previous mistakes. I will be making the offer this week and will gladly let everyone know how it goes. 

@Lou LaMedica this was actually one of those dumb luck type of things. I went to church for a friends ceremony and ran into some old friends. And I was talking with the father and he asked me what I was doing now that i'm not working anymore and I told him I am  doing real estate. Then he mentioned the property and within about three days I was inside of the property crawling around on the floor and peaking in the attic lol. So I knew them directly and since i'm pretty connected in my area most people know me as someone who is always interested in looking at any property so they come to me quite frequently. Thanks again for the vote of confidence though I really appreciate it. 

@Jaysen Medhurst Ok everything you have stated sounds like a good plan of action for me. I’d like to keep you in the loop on this process if that’s ok? I’ve done this a few times but every time I do I’m always second guessing myself lol. It’s so much easier with help. These are big life changing moves most of us are making. Thanks again for all the help and I’ll contact more as the process moves forward. I’m really at the making an offer phase I do believe. 🤞🏻

@Lou LaMedica Hi Lou I live in Charleston, WV and I have three multifamily properties, all duplexes and I'm working on a quadplex as well currently with help from people on the forums. All of the properties I own are in Charleston. I love it because it is definitely a buyer's market down here. The bad however is a lot of the area is lower income which is true for WV as a whole - a lot of D and C properties. But that is my advantage because there are still people willing to stay and it is a good place for a first time investment because it is so cheap. Id be willing to show you the area and even go over some possible investments and deals in the area. I can also point you in the good areas and the areas to avoid. One interesting thing about Charleston proper is it is going through a revival in a redeveloped neighborhood known as Elk City and it is going to be interesting if that helps boost the cities worth. Good luck with whatever you decide. 

@Derrick E. That is such good information thank you. I will definitely check them out ASAP. 

@Jaysen Medhurst

1. Yes, I own a couple in the area and I checked Rentometer so I think those assumptions are accurate. 

2. The ARV is my weakest area. I dont flip and I haven't had a chance to do a BRRRR, I just put a rough estimate but Im a little green in this department.

3. Its actually located in a good area for the small town its in. Its 30 seconds from the middle school and 2 minutes from the high school literally. Low crime and Sissonville has some of the highest property value in the Charleston, WV area. 

4. I have not decided on a house hack yet or not. If I need to I have no problem doing it as this will be my third time doing it. 

5. Why I put one dollar is because I will be purchasing this property with a lease purchase. And in my experience with that, all of the money I use for a down payment will go to cover all the expenses that one would incur during a traditional closing like escrow, lawyer fees etc. It will take a year before I can turn it over to the bank but I just recently did this method on most recent investment in November. The calculator doesn't have a method for this type of purchase so Im not entirely sure how to make it fit. 

6. I redid the estimates with your guidance;  https://www.biggerpockets.com/calculators/shared/310139/4d57b729-8ef8-4da4-a6c0-9feb81483d0c

7. I have a record of their taxes but im worried mine may be more so it wont be as accurate? 

8. The only shared utility for now is auxiliary heat that runs them 88 dollars a month, they are on a budget plan. I despise shared expensive and I dont want to pay anything. The new PTACS and base board heat will remove me from any utilities besides the trash. 

Lastly, that number would almost be a crazy dream for cash. I've never made anywhere near that number in my entire life at a job. It's a little different down here in West Virginia. However I am crazy blessed and the most recent deal I was able to get for a steal and own a duplex entirely free and clear. I could pull out 85k minimum off of it and offer cash. But I really want to save that moment for a big boy purchase like a decent size apartment complex, 6 units and up. But I have to let that season for another 6 months. 

Again I am humbled by your willingness to check out the numbers and help. It really means a lot whether I get this property or not. Thank you also for further input. 

@Jaysen Medhurst

https://www.biggerpockets.com/forums/88/topics/655238-calc-review-help-me-analyze-this-deal

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*This link comes directly from our calculators, based on information input by the member who posted.

I put an estimate of 90k, but I was told today by someone else to start at 65k. The seller is hoping for 100k. Im not sure how to determine most of the numbers on here. I know the insurance rate is right as i received that quote today.