All Forum Posts by: Brett Blackmore

Great discussion, thanks for your input everyone.  Definitely going to apply these suggestions in my offer.

 How much would you suggest for a keys for cash?  Again, she pays 500 and month and the lease would be up in April.

Yeah, part of the offer I'm going to submit factors in the cost 12 months of rent beyond the remainder of the lease in case I run into the issue of delinquency.  I'm just trying to work that in my own numbers for peace of mind. The worst they can say is no! 

Hey BP'ers,

I'm still working on securing my first deal, and definitely taking my time trying to make sure my first buy is actually a deal.  I found a 2 family that has the potential to have a good amount of cashflow.  Here's the details:

1st floor has existing lease that is up in April and pays 500 a month (Average for 1BR in this market is 650-750) which I intend not to renew in when it is up in order to do renovations and then rent for the higher 700-750 range.

2nd floor currently has no tenant, which i intend to do a minor facelift to kitchen and bathroom and ask in the 700 range (With the existing lease and even making 600 a month on this unit, I can cover the mortgage, but with no cash flow).

I'm going to submit an offer contingent on the condition of the 1st floor property, however I'm reluctant to go into this with an existing lease.  I know nothing about the history of the tenant and what to expect when the lease is up.  Am I better off asking for the lease to be broken and tenant vacated by the closing date, or should alter the offer to reflect an potential "bad tenant"?  This seems like it would be a no brainer for me if there wasn't a lease on the 1st floor.

Thanks in advance!

-B

Get a mortgage from whom?  From what a local loan officer was telling me, banks will not transfer ownership of equity loan, nor give out a mortgage just on the 80k for a loan.  I'm new to this, more detail is always appreciated :)

Hey all!

First post since joining and do I feel like a rookie.  So just wanted to outline the facts of a potential multi-family home I'm considering purchasing.

My wife's aunt needs to put her house up for sale as her health has declined.  House is in a great area of a city nearby to a hospital and lawyer community.  Also, we have a commuter rail coming to the city in the next 2-5 years, that will connect it to a major city.

House has not been formally appraised, but a real estate agent they knew said in good condition, it could go for about 320,000, however in the current condition, they would likely be asking for 240,000.  It needs a roof, electrical and other improvements.  It's a 3 unit building, two 1 BR (One is the main house with a study and full size feel), and a 2 BR apartment. Rent for the area goes for about 1200-2000/mo.

I have a maximum out of pocket of 50k from my home equity, which would leave no room for repairs. She also has an 80k home equity loan on the home, so it gunks up seller financing a little. The rehab could cost 30-50k alone, but the ROI I feel is really worth it long term with the changes to the market in the next few years.

Ultimately, I'm just looking for my best options on how to move forward, if I should go into it with a partner, or if it's just too much risk and unknowns to get into it for my first property.

Any advice is appreciated!

Thanks

-B