All Forum Posts by: Bradley Sriro

@Jan Styrczula sorry to hear that you are going through this. Were these loans you made to him secured by any interest in the property or simply a verbal agreement? Also, did you loan the money to him personally or to an entity he controls? I agree with @Nathan Gesnerin that you should demand repayment in full within a timeframe that you are ok with. I think 60 days is reasonable as Nathan suggested. At the end of the day, you are in a pretty bad spot. Ultimately this is a civil matter and your only recourse will be taking him to court to seek a judgement against him. 

I have seen this type of scenario play out many times over the years in my work as a Police Detective in the Economic Crimes Unit. Many times people file police reports as theft and/or fraud for very similar circumstances. In each case however, I have to inform them that their case is a civil matter that can not be handled by law enforcement. I hope this all works out in your favor soon!

@Jim Young When you say tenant B was open to it, what do you mean? That they were open to staying and you finding 2 new roommates to replace A and C? 

Just a word of warning... I would never use figures from Zillow. They are generally way off. Also when you are dealing with a lender, the figures they are using are based on the current property taxes not the future property taxes after you make the purchase based on the new purchase price. 

Say for example you purchase a duplex with annual property taxes of $2400. That $2400 figure is based on the current owner's appraised value which is ultimately derived from their original purchase price. Now let's say a buyer comes along a few years later and pays $50,000 more than what the seller paid for it. This is going to result in the new purchaser having higher property taxes going forward because the properties assessed value is going to increase proportionally. I would highly recommend going to the county property appraiser's website and looking for their tax estimator tool.  

Also remember that if you are house hacking a duplex, the Homestead Exemption can get tricky. Here in South Florida, if you are receiving income from part of the property, only the part which is your primary residence may receive the Homestead Exemption. All of these things will affect your overall annual taxes after purchase. 

As for the insurance, call a couple of insurance agencies to get estimates. This doesn't cost you anything other than a few minutes of your time... and they will likely be able to give you a good estimate based on the location, the year the property was built, the type of construction, etc. Depending on the year it was built and the location/ market, they may need a 4 point inspection and wind mitigation report for an accurate quote. I am in South Florida and for homes over 30 years old it is required along with a wind mitigation report. Also find out if you will need flood insurance. This is often times overlooked when analyzing deals. 

At the end of the day, you want to make sure that you have numbers that are as accurate as possible so you can make the best decision possible... especially if you are planning on spending $375k. Hope this helps.

@Kristopher Sharpe If you are planning on house hacking, it's not a home run but it looks like a fairly solid deal with you being able to live there for between $300-$400 per month with the other side being rented at $1500/mo. Are you basing the property taxes on the current owners taxes or are you accounting for the increase based on your purchase price of $375k? Also, with regards to the insurance figure... Is it based on a quote you got for the property or simply an estimate? 

You're welcome... In that case, you will need to establish a relationship with someone that has boots on the ground whether it be an reputable agent or property manager that is familiar with the area. If you aren't able to comfortably and confidently establish values in any given area, you may want to ultimately avoid it to save yourself a headache and $$$ in the process. Being able to correctly analyze a deal is entirely dependent on the data being accurate. 

Hey @Heston Vaughan, Bigger Pockets has one of the best rental property calculators out there under the tools tab. I would suggest using it for your deal analysis. 

With regards to comps, be very careful using an app or website to automatically pull them for you as they are often way off. You can use apps like zillow or the county property appraiser's website to pull comps but you want to make sure that you are pulling true comps. In general, you want comps that have closed within the last 6 months, within a 1 mile radius of the subject property that are +/- 10% of the square footage, with similar size lots and similar finishes. Make adjustments to account for any differences. Also, if you are analyzing deals outside of the market that you are familiar with, you have to be very careful. Values can vary greatly from one neighborhood and/or street to the next in some areas. If you aren't aware of this, you can end up with bad comps that can greatly skew your results.

Hey @Denver Borst, first off I think that its great you are interested in building wealth through real estate investing at such a young age. Aside from what others have already mentioned, I would recommend making sure that your employment history is consistent. Don't leave your job unless it is for a higher paying job that offers stability. Also, I would recommend you explore house hacking for your first property if you haven't already considered doing so. House hacking is a fantastic way to start out as a young investor. Finally, don't try to rush anything... As long as you continue to educate yourself and save up, you will be in a great position to make your first purchase when the time is right. Best of luck!

You're welcome... It sounds like you have a decent potential deal with the neighbors house. Good luck!

Couldn't agree more... Being able and willing to say no can save you lots of potential future headaches.  

I have to agree with the vast majority of others who have recommended selling it. Based on the numbers that you have provided, this is just a bad investment. I have never been a fan of condos... especially as rentals. The HOA alone is eating up 1/3 of your gross rent. The quicker you can sell it, the better. You already have a substantial amount of capital to deploy and find a better property or properties elsewhere. Have you ever considered purchasing a turnkey rental as an option?

With $100k cash, you can purchase 2-3 single family turnkey rentals using 20-25% conventional financing in a market such as Jacksonville that offers good cash flow and appreciation. Do you live out of state/area?