All Forum Posts by: Carlos Oliva

I bought a 2Bd 1Ba SFR just outside Indianapolis for $35k in January. I intended to BRRRR the property & spent about $40k total to fix it up. Major issues with the 1st contractor, but 2nd contractor fixed things fast. Appraisal came back at only $98k, so now I'm trying to sell.

It's listed at $109k. I accepted an offer after a week on market for $105k, but it fell out of escrow because the seller wanted the roof replaced. The roof is serviceable, but likely has 5 yrs or less of life. 

Now I'm left wondering whether it's best to lower the price to get the property off my hands asap or to make some costly improvements that will probably neutralize any increase in value. Example - replace kitchen cabinets that are serviceable to ones that are new & modern or replacing the roof. 

I have a duplex in Ohio where the tenants pay $1500/mo; I pay mortgage & utilities, about $800/mo. So, cashflow is about $700/mo. 

HOWEVER, there are always issues. Tenants are always a few weeks late paying. There are frequent pest issues & repairs that come up. The current urgent issue is the porch columns need to be adjusted - about $2k. The roof can last another year or so but then will cost about $20k to replace. And the exterior could use a paint job & window replacements.

I bought the property 18 mo's ago for $90k. The loan balance is $60k. It's currently valued at about $95-$100k.

Should I sell the property & 1031 into another "nicer" multi-unit in a better neighborhood that will certainly cost more & likely not cashflow as well? Or should I just hold & continue making major repairs/dealing with headache tenants?

Yes tied to real estate. And I am looking to be the borrower but I don't want to get any private friends or family lenders in trouble. 

Is private lending as simple as it sounds or are there regulations to follow. 

For example, can I simply let a friend borrow $25k & get paid back with some interest or is there some reporting & rules involved before engaging in such practices?

Thank you everyone for sharing your knowledge. @Evan Polaski the last part actually alludes to what I am still not clear on. Are apartments (5 units or more) considered "commercial" real estate or is that still residential?

And what is a typical down payment amount for commercial real estate? In my experience, non-primary residential SFH requires 20% & multi-units require 25%.

Commercial vs Residential. I understand residential financing, buying & selling, but I often hear there is more money to be made in commercial, but don't understand much.

Should one start by finding a commercial lender first?

 Thank you Jeremy. Do you have any other GCs to recommend also?

Had a bad experience recently with a contractor. Anyone have recommendations for a contractor they have had a positive experience with in the Indianapolis area?

Had a bad experience recently with a contractor. Anyone have recommendations for a contractor they have had a positive experience with in the Cleveland area? 

When starting out, but owning an entire property outright with added improvements, would it be better to cash-out refi or get a HELOC?