All Forum Posts by: Ari Hadar

Hey @Ari Hadar, it might be possible that there are not any listings that are 6 months old in the area you are looking.  If you are changed the days on Zillow to 6 months and are not getting anything I would expand your geographic search or reduce the time on market to 3 months.  

@Ari Hadar The objective is to get the property in contract and then enter due diligence...I see this frequently with new investors...they always perform due diligence up front and then consider an offer. The purchase contract has multiple exits...once you are in contract...get to work on due diligence. If you so not like what you see, you can negotiate purchase price or terms...or both, or exit the contract.

I would say make your agent request a walk0thru within 48-hours of contract acceptance...if there are red flags, they will spot them and you can exit early without paying $500 for an inspection

@Ari Hadar odds of getting interior images are slim with investment property like this...especially stuff trading off-market. We set the tolerances very tight on this...so, comps are all within 100 sq.ft. either larger or smaller with same bedroom counts on the same block. These were all built by the same developer at the same time.

Rents are impossible to predict until you put this on the market...determining rents is educated guesswork at best...

@Ari Hadar A duplex is a "single family"...1-4 units are, actually... and they are always valued using the comparable sales approach...the only other metric I have ever seen an appraiser use on a duplex is GRM...they look at leases and income, sure, but that is not used for determining value...

Here is a Valuation of your property...this thing is worth around $65k...to be honest, you can probably source your own deal from the same block for $30k

p.s. Deal Check comps are in left field...get with a local agent

Hey @Masood Amin congrats in saving up $100,000. Traditional financing is not going to be possible with no job unless you were to find a mortgage qualifier/co-signer perhaps. You are likely best to get a job and let time pass so you can get traditional financing. But who knows how long that will take and what will be the lost opportunity cost be as you wait? Will it take a year to look solid on papper? If so what is the cost of missing out on a year of investing experience, mortgage paydown and possible property appreciation as your cash gets eaten up by inflation?

You could partner for sure but generally these partnerships come with the downall of giving up 50% of your equity and control. We invest in real estste for control and options. I woulden't want to wake up one day to hear my partner has decided to sell for whatever reason. Maybe it's a bad time to sell or maybe he just wants to exit real estate in general.

If I were you I would highly consider the private money loan option. Some of these rates can come in the 5%-6% range right now for long term rental financing on good assets and no you don't need a job as the asset is what is looked at mainly.

I hope this helps, 

My first question would be why can they not access the basement?  Is there no outside door entry to the basement?

High crime

Poor schools

tenant base as mentioned above very very difficult 

 What about c areas in Cleveland? 

OP means Original Poster... in this post, that means YOU... :-)

Cheers... Immanuel

@Ari Hadar

Duplexes are usually valued using "comps". I would check with local realtors to get a feel for home values in the area. If you are going to finance this then you can also check with the lenders in the area on how they would value the property. Residential loans would generally value residential properties using "comps".

@Stephen Brown

By ignoring the "comps" I'm assuming you are saying there are comps out there for this property but the OP should just ignore them? 

What if the OP's cap rate valuation comes up higher than comps? Should he offer higher than comps? That doesn't make sense. 

What if the OP's cap rate valuation comes up lower than comps? Should he offer lower than comps? That doesn't make sense either because the OP wouldn't be competitive with his offer.

Cheers... Immanuel