All Forum Posts by: Brendan Chase

@Jim K.7 and 8, plus 20 and 40.

This could really go under a number of categories, as I’m looking to pull together from many places to make a deal work.

I have an opportunity to purchase a six unit apartment building recently damaged by a fire, along with an adjacent two bedroom house as a package deal. I don’t yet have all of my numbers together, but the owner is willing to do owner financing for me.

The fire damage is is extensive in four of the units, but the two ground floor apartments could likely be cleaned, painted and rented.

I don't yet have estimates for repairs, but it is likely in the hundreds of thousands of dollars, up to three. ARV is $700-$800. Plus the two bedroom house is $200+.

Not sure my specific question here. But, I’m excited about the possibility.

Does anyone have experience with fire damage? Unforeseen pitfalls?

Also, owner financing pitfalls? What I may run into is a shortage of money for the repairs, while needing to continue paying the mortgage. Interest only payments for 3 years? Where could I get the money for rehab? The problem being to being able to refi my equity out to pay off the construction loan.

Many moving parts, and any advice or thoughts would be greatly appreciated.

This is in Maine

Cheers.

@David M. Thanks. Any reason I should go one way over another? The commercial loans are 20 year variable, although I locked in this spring for five years. Higher monthly payment, but paid off sooner.

I currently have separate 20 year commercial loans for each of my rental properties that I recently refinanced.

I’m looking to purchase another rental property- I’m looking at a duplex and also a triplex - and am wondering if it’s possible to get a traditional 30 year residential mortgage without house hacking? Do I have to live in a unit for a year in order to qualify for that mortgage?

Thanks!

@Ed Emmons

Ed, thanks for taking the time with your thoughtful response. All very good advice and some positive steps for me to take to move forward.

I’m in a fortunate enough financial position to have been able to purchase properties so far simply knowing that real estate is good; however I am likely still in the analysis paralysis state in that I haven’t fully committed. For spending as much as I have already on investments, I really haven’t asked those important questions surrounding an end game.

Anyway, thanks for the thoughts and time, and for the home work.

Brendan

I’ve had some marginal success buying a couple of units in my local market in mid coast Maine, but see better deals in different towns throughout the state. My question is whether I should pick one market and pursue that - ideally using one property manager, agent, etc, or whether folks think it’s just as easy to buy a couple units in one market, the a few in another market and be just as successful? I still want to keep all my units within the state of Maine, just wondering of the hassle of many towns versus just one town.

Thanks!

Thanks all for the responses.  I guess what I'm wondering about more than anything is hanging onto and paying higher interest with private lending for too long a period before I can cash out refi with a bank.  Is it common to keep private financing for longer periods, say up to a couple of years?

I would like to use private money to BRRRR a four unit apartment, but two of the units are currently occupied. How do I go about a quick turn around to refinance if I cannot get into those two units?

Help! I'm in the middle of a single family rehab with intention of STR, along with owning a duplex that I rent long term. I had a vacancy in one of the duplex units and am rehabbing that a little as well. I'm looking for some help organizing all of the money going out (with what seems like none currently coming in) Any tools people recommend for this? I've heard google drive works? THanks in advance!

I’d like to hear thoughts on buying real estate that not only makes financial sense, but also makes you feel good.

Two parts to this:

Is there not a responsibility to improve what we have need given and worked for?

And should we not also at least enjoy and like the property we are buying?

A developer friend of mine recently suggested I never use an adjective describing a property, which, on face value seems impossible. But, his point being that it should only be about the numbers. Is this the case? Is there not a balance? Just curious the thoughts of fellow investors.