All Forum Posts by: Chris Ready

Hi Ryan,

I invest in that market too.

Have you driven by the property yet? Do you also know what needs doing in terms of a rehab estimate?

I think with the quality of the building and units, and things like window ACs you will be hard pushed to get the rents to $500 especially as there is quite a lot of rental supply currently. Keep that mind when running the numbers and valuing the property.

Hi Ryan,

How did this end up working out for you? Did you proceed with purchasing?

Chris

@Jordan Butz I would check out some of the comps in the area. A lot of 4-plexs I've seen in that area go for closer to 120-150k. Even if the numbers work for you as is, I'm sure you don't want to overpay and make a loss on the back end.

Just a heads up, ALFA insurance will not insure a rental property unless you have a homeowner policy with them. 

@Patti Robertson Thank you, that's very helpful!

Thank you @Patti Robertson.

What would happen in the event that the owner would like to terminate their agreement with the PM? Is the PM obliged to assign to Section 8 contract over to the owner? 

Can the Section 8 contract be between HUD and the property manager or should it be between HUD and the owner?

Thanks again for the advice.

Hi BP,

I heard from a motivated seller who wants to sell a multifamily property.

They report there are 3 units on the lot - a 2/1 and 2 x 1/1.

In doing my due diligence I've noticed that only 2 buildings appear on the tax records (a 2/1 and a 1/1) and that the lot is zoned 'MDR' which according to the city's municipal code can mean 2 single-family dwellings or 2 2-family dwellings or one single-family dwelling and one 2-family dwelling may be constructed thereon and so used.

From another source it said the zoning is LRR2* but I'm not familiar with what this means. Does anyone know?

From street view it's pretty clear there are 3 dwellings and one looks to be a converted garage which I assume was not legally permitted.

I have not come across this situation and wondered how I should proceed with this? Submit an offer that reflects the lesser rent from only 2 units less any costs to remove the illegal rooms/dwelling? Or not touch it with a barge pole?

Thanks,

Chris