All Forum Posts by: Barbara G.

The age of the property would be a big concern to me. Cappex seems low for that age property as does 

maintanence

You have to ask the existing  rents of the 6 apartments.

What renovations he sees as necessary and what he thinks the cost will be.  The age of the 6 plex.  How long it has been listed. 

Run the numbers on the BP calculator.  Present the numbers to this forum and see what your BP friends think about the deal. 

Look up Zillow on the internet and absorb what they are saying about the value and similar listings. 

Join a Real Estate club and or a Real Estate Meet up group and talk to them about your deal.  
Ask your agent The reason for selling and if he thinks it is a negotiable price.  Ask the agent what he thinks you should know and ask about this property. 

The first thing you are going to do is look at the numbers

You might have done that already.  If the numbers don't work there is no point in going on to the next step.  

The next step is the condition of the property and how much the necessary renovation will add to the cost of the 6 plex and running the numbers with the renovation added to the cost.

This sounds like part of the cost of doing bussiness long distance.  You lose the control you have when you are within one hour driving distance

You do not list the price of the house.  You do not list the current rents of the 5 apartments.  You say nothing aout the renovation costs or the listed information on the house from Zillow.  

How can anyone even know where to begin on a question that is so lacking in information

So you have given us the price of the multi 5 plex but we know nothing about the current rent of the 3  occupied apartments.

How much is the tax and the insurance and down payment and maintanence and rehabbing  What is the age of the house?  What major  replacements are necessary?

When they painted did they ask you for permission to paint and did you give them that permission?

When they changed the light fixtures did you give them permission to change the light fixtures?

How much is their deposit and how much are your charges for painting and redoing some of the electrical problems

How much of the deposit are you refunding them?  Will there be any allowances that you are giving to the tenants  toward the painting charges since you probably had to paint after they moved even if they had not repainted?

I am sure you have discussed this with your lawyer and what is his opinion?  You should consider negotiating the refund with your tenants.  Advise them of the cost to repaint over their colors and what part of the cost is their responsibility.  If they sue you and it goes to arbitration the court  will ask you to negotiate the price anyway.  

Take photographs of before and after painting and of the light switches and anything  you are going to charge them for.

There might be some negatives to living on the sme street but there are also many positives.  You are right there and do not have to travel to the property to make repairs or see what the outside condiiton of the property is.

You know the real estate and the value on your street  You can manage the property and don't need to pay for a manager.  You know the exact value of the property.  It all sounds good to me.  

The painting of unaccepted colors should have been addressed in the lease along with the replacing of light fixtures.  Are they replacing your original light fixtures?  You should have been doing regular inspections of the house before this and voicing your concerns before they decieded to move 

Will they be leaving the house "Broom clean".   Depending on what the lease says you might be able to charge them for the painting of any unauthorized colors.  

People do move and as much of  an inconvience this is for you it is something you have to live with and is part of ths bussiness.    You can try to document the landscaping upkeep and try to charge them for that but that sounds rather difficult.  It's time to move on.  

Your relationship with them is over it could have been much worse. 

The suggestion to buy the place might work.  A lease to buy or owner financing with an acceptable down payment if bank financing is not possible.  What does the family want to do with this house?  It sounds like there is a problem with it as  rental  for you and yor wife so either explore buying it or move on

Wjy don't you have this conversation with them  offer to buy it.    Or have a lawyer draft your offer  and  discuss it with your  in law's attorney.  Maybe it can be a win win situation