All Forum Posts by: Brian Dennis

We are doing some student rentals here in Georgia and I've found more students looking for private 1 bedroom 1 bath rentals. What I've done is look for 2,000 sq ft 3/2 homes that I can split into a 2 units with separate entrances. So the original 3/2 is still available but I now have a studio apartment to also rent to student. Each student has to sign a separate individual lease and is not responsible for their tenants rent. Each student pays a separate security deposit also.

Update:

The original listing was 695k. We had it under contract for 650k in September. The property was a 4500 sqft custom home with 13 car garages. My plan was to move in the 3,000 section with my wife, also move my mother inlaw in the 2 bedroom suite which is 1500 sqft. Then convert 4 of the garages into AB&B units. ( the 13 garage total sqft was an additional 4000 total )

Now: 

Since we canceled I'm out of 2k in inspections fees and 100 headaches dealing with the idiot. 

Then we saw on line that the agent re-listed the property after we canceled for 675k. No mention of the septic tank under the 8 car garage.

Update:

Day 7 of the 10 DD:

My home inspector did a great job on inspecting the house on day 6. He found several minor issues we expected but the MAJOR issue he found was that the 8 car garage addition ( 42ft x 42ft ) was build directly over the septic tank and drain field. Now we know why the listing agent and seller kept blocking our due diligence inspections. We double check the "sellers disclosure" and the seller listed the property was on sewer. The listing agent has 25 years experience in the community and he either did or should have known about this defect.

Day 8 of the 10 DD:

At 10am my agent and a local septic company did an inspection and confirmed the tank was under the garage.

We called the county building office: NO building permits ever filed for this property. We contacted the county health department and the water department: NO record of where the tank and drain field is located in their files but they both confirmed there is NO SEWER in the area. Building inspector dropped everything he was doing and we immediately meet to the property. Seller refused to let me in and also refused to let the building inspector look at the garage. The county health inspector plans to come out next week. We asked seller for an extension, they refused.

Day 9 of the 10 DD:

Spoke with 2 lawyers referred by closing attorney's in the area. Met with another attorney and he stated that since we now know about the problem we can not file a law suite if we buy the house. Also will loose our EM if we cancel after the DD. 

1. We don't know if the tank can be moved without tearing down the garage.

2. We don't know if there is a 2nd drain field area available

3. We don't know if the garage is safe or was built to code

4. We don't know if the ground under the garage is stable or will remain stable

Around 5pm that day, the seller sent a counter offer to sell us the house "as is" for the same price.

Day 10 of the 10 DD:

We canceled.

Thanks for the replys. . . here is an update.

We know the history of this house since we tried to buy it 2 years ago when it was for sale. We have a copy of a previous home inspection report.

Day 5 of the 10 DD: We contacted the agents broker/corporate office and we now have access.  

Day 6 of the 10 day DD: Finally got my home inspector, HVAC tech and contractor inside the house. As expected my found issues that need more competent professionals to look at. Need to schedule swimming pool inspection, septic tank, and exterior roof. 

Seller is refusing to allow any more inspections. Seller also refused to extend the DD to address issues found in our report.

My personal opinion is the seller and agent know there are multiple problems with the home, and they had hoped we were "incompetent, naive or stupid" and would not use our due diligence as contracted. ( most buyers don't ) 

So out of the 10 day of DD we have had 4 hours total . . . so far.

Have a 4500 sq ft custom house under contract with 10 day DD.

Seller is refusing to allow access for roofer, plumber electrician, pool inspector, etc. Only wants to allow my home inspector.

So we know there must be issue will all these systems but the house fits my family needs and we can turn additional space into an apartment for rental.

What option do we have besides walking away ?

We own 9 acres in Eastman that has city sewer and water on it. We could build duplex, triplex or town homes. Wanted to see there was any advise on building student housing for the college which is near by. 

Looking for guidance on building 30-50 student rentals in middle Georgia. 

Not sure if there is a solution to my issue.

My wife and I have a duplex and a triplex in a small town in Georgia. Tried to refinance 2 times but failed because there are NO multifamily comps within 100 miles. 

Both the duplex and triplex were purchased and rehabbed out of pocket in 2018 and 2020. Monthly rent is 2k on the duplex and 4k on the triplex. But our appraisals keep coming in around 100k. 

There are plenty of SFR comps in the city so we decided to buy and flip 2 properties recently. We rehabbed and sold a 3 bedroom 2 bath SFR for 129k back in October. Our currently flip which is a 4 bedroom 3 bath SFR is under contract at 175k.

Don’t know how to address this problem.

Not sure if there is a solution to my issue. My wife and I have a duplex and a triplex in a small town in Georgia. Tried to refinance 2 times but failed due to no multifamily comps within 100 miles. We also have 9 acres of raw land with access to city sewer and water so we could build more multifamily rentals.

Got offered a deal from a retiring investor for 14 SFR on 28 acres of land on 8 parcels. The rents are all low between $450 to $600 per unit. We plan to raise the rents at least $25-$50 per house at the closing. There is all ready great cash flow based on the purchase price.

We plan to build additional homes or add trailers on the unused land. My question now is should we separate the current houses from the unused land. We would end up with 14 two acres parcels. Pay cash for the land parcels and mortgage the homes. Thinking it would be easier to refi and pull money out if these are separated.