All Forum Posts by: Christopher Pride

It makes sense to do #1b but I personally would explore #2.  Give them an out now and balance the cost of that against them leaving the place wrecked leaving the non-op vehicle.  Get bids on the removal and cleanup, and compare that to a buyout amount.

Let me know if your pending deal falls through.  I might be interested in the package deal.

I'm fairly certain if he was required by probation/parole to register as an SO and he didn't, there will be a warrant for his arrest.  I would contact the PD/Sheriff and ask them what can be done.  It could be he is lodged and charged after which you can take possession based on abandonment/non-payment.

It's always a good idea to use an attorney but if you spend the time, read the laws it's a pretty straight forward process to evict on the grounds you stated.  How your rental looks when he moves out, well...be prepared for the worst.

Thanks for the input!

"Any chance for a vendor take back mortgage?"

Doubtful but that's an interesting approach. I am certainly open to the idea so I will keep that in mind and run it past the seller.

"what are average house prices in this neighbourhood?"
500k avg however that's single family vs this which is a multi with 6 units. Yes it's the nicest home in the area.  My emotional investment is in the money, not the property and I am coming at it from the "sales" approach and I am looking at it from an "income" valuation.  It's an absolutely gorgeous house, though so it's hard to compare it to the average stick home. If it were a dog of a property and still penciled like this, I would be equally emotional.

I am barking around an off market property and I want to jump on it. It's the first place I have seen in a while with this much upside potential.  Owner put out a "feeler" on a local Facebook group and immediately got bombarded by inquiries.  Mine was one of them and because we are just a small family, I think they want to sell it to us rather than investors.

I am interested to hear what others think, their methods to finance, tools they use and if they would go for it.

I might be able to bring some other financing from family but we currently have about 140k to put down (yes I know that's low). 

House is on the historic register, once a bed and breakfast, a massive 4 bed, 3 story Queen Anne Victorian, very well maintained with multiple rentals.

_____________________________________________________________

Current Rents:

House: Basement Apt: Current owner occupies $0

House: 4 bed, former BnB, currently 1 room LTR, frequently STRs (travel nurses) 800

1 BR Apt: $1000

Studio: 900

Cabin 1br: 1000

Cabin Studio: 700

Current Gross Rents: 4400

___________________________________________________________

Potential Rents - All rents are currently below market*:

House: Basement Apt: Owner occupies $1500 ($0)

House: 4 bed LTR $2800 STR $5500+ BnB 20,000

1 BR Apt: $1500

Studio: 1200

Cabin 1br: 1500

Cabin Studio: 1200

*There is an addition attic apartment unused: 1200

Potential Gross Rents: LTR=$9400 - STR=$12,100

Tax:530/mo
Insurance:250/mo

Assumptions: Small family wanting to househack and come as close as possible to no monthly expense. We intend on holding the property indefinitely, doing minor improvements. High rental demand so good tenants. Rents are severely undervalued and several potential units are left vacant due to current owners situation. (age, well off doesn't need $)

Asking Price: 1.15M
Current Down: 140k

I am open to hear from lenders that can work a deal like this.  Let me know what you think and thank you guys SO MUCH in advance.  I truly appreciate any insight!

Quote from @Ryan Thomson:

@Christopher Pride did you land on a place to move yet?!

Not yet.  This market has us pretty nervous.  Every loan I crunched had us raising rents on the 3 other tenants to get even vaguely close to our numbers.  We're willing to kick a bit in each month but every multifamily we run has us paying close to full rent after insurance, taxes and expenses. Add to it the risk of another covid eviction moratorium and we're looking at a bad investment.

It's likely going to have to be a DSCR or other NonQM. I am open to suggestions, though.

Are lenders pulling back or am I just not shopping the right ones?

I have a line on a deal for a property that I believe is undervalued and has great future potential for improvement.  It follows the first 3 rules of real estate, is zoned "light commercial" which would include multifamily, the direction I want to take it.

It has a well established restaurant and 2 residences.  My plan is to move in to one while I work on other parcels attached, then develop the 2 residential lots for multifamily and/or STRs.

This has stumped several lenders who have told me "we don't do commercial, mixed use, etc"

I am at the point where I may need to pass because I can't seem to find a lender able to work on it. 

As with anything, numbers don't lie.  The property stops making sense at around an 8% mortgage.

Wife and I are coming off of a long-term sailing trip after having a kid.  This is an open-book situation where we really are free to decide where we want to be.  The wife works remotely and I have been working on boats for beer money the last couple of years. We've only done one flip in the past couple years, as well, and I am in analysis paralysis of our next move.

I'm looking for work, a property to invest in and to househack a place to live.  I have a lot of real estate experience, have worked in construction and have tools to work on a property myself.

We've lived in Southern and Central California, currently in SW Oregon (went to college, lots of friends here), have family in San Angelo, Texas and near Seattle.  That said, we don't need to be next to family but being somewhat close by has advantages so those places are favored somewhat.

The strategy is to buy, househack a value-add multifamily for 2 years then rinse and repeat until we can build up enough capital to either start developing, move to larger multifamily or the wife wants to start a senior care facility. 

We're interested in a place to live that breaks even with 3 units rented, has some value to add and is relatively clean in an area good for raising kids (no ghetto/near industrial, etc)  We have about 100k of skin.

What are some areas worth focusing on?

Do you have any recommendations for that area (Realtors, lenders, other houshackers)?

Anyone ever partner on a househack?  I am considering it to leverage a much nicer place than what I can afford putting 100k down.

Originally posted by @Aaron K.:

@Christopher Pride are you trying to fix up and sell the property you're living in or are you trying to secure funds for a new flip?

Slightly more unique. Hard to explain but if you're interested in talking...