All Forum Posts by: Bryan Mitchell

Jason I have a 2.7 acre lot with 4 single cottages on it. Also has another cottage ready for a rehab and one more vacant lot ready for a trailer!

Brian is correct, there are plenty of 10 CAPS. They will have 50% vacancies and or require rehabilitation. 

After an inspection, you could determine if there is any differed maintenance. That would to know. Also, what fixed expenses do you have? Back this off of the gross rents, what is is your net (not including debt service)? On the surface this looks like a good deal. Any value add here? Any empty lots you could rent out?

I wouldn’t do anything illegal. Find out a work around. Get to “yes”.

I like Olegs suggestion. Assume the mortgage, use HELOC to buy another duplex if possible.

Additionally, without the value adds, what is the cash after estimating all expenses? (Vacancies, Maintenance, CAPex, etc)

Personally I don’t like to speculate on appreciation, so I wouldn’t do the deal since it doesn’t cash flow. However, you have to live somewhere. 

Interestingly you left out what cash flow you are bringing in. Why is that? You only mentioned what the rent ranges are which doesn’t help much to estimate cash flow since the reader doesn't know the area/ address or (most importantly) the rental history. 

Also we’d need to know what your income currently is what what you made in real estate commission thus far and what you expect to make from your realtor income in the immediate future. This will help us determine if you should quit your day job. 

Have you tried a local AZ bank? Curious to know why you can’t get the commercial loan.

Yes, so he wants to do a 1031 exchange. If you use a hard money lender you will need to be able to refinance. Why can you not get a commercial loan on the property?

What if there are no security deposits, but currrent leases with long term tenants?