All Forum Posts by: Account Closed

I have found mortgage lenders  online who say that you can infact downgrade into a 4plex using fha 203k.  If that's not true, certainly I want to know. The next step I think is to try to find mortgage lenders in the area who can answer that question.

So I called the zoning office, and they said they don't have records of what it's zoned for... that because they are a small town, they use a rule that all residential are allowed to be multifamily, and the number of units is limited by lot square footage.  The lot this property is on will accommodate the 5 units, but like I said, it seems like that's all they can tell me.

Harlowe, I think your confusing a sound system with good bass, and Loud noise.  

Having been a renter, it's important to remember that trying to force a tenant to stay when they want to leave is very dangerous for your property.  It might be a good thing to keep open communication, that way you might get well over a months notice, or like the other poster said, they might have friends that want to rent a place.

Thanks for the advice.  I'll find out about the zoning when the office opens on Monday.  I am mostly thinking of converting to 4 for financing.  The property has been on the market a while and the seller keeps dropping their asking.  I'm under the impression that due to the difficulty and worse terms for financing a commercial loan, there are less potential buyers. This I believe is keeping the property value down. This 5plex is going for about 1/2 of quads in the area.

So for example I think I can buy for $80k, put $50k, in and have the arv be almost $220K.  After conversion to a quad. 

So, I'm looking at a 5plex that needs renovations, no structure stuff, it's just old, damaged windows, doors, too many layers of paint, old cabinets, etc.. I Want to use FHA's 203k program to buy, and finance the renovations. it's a 5 unit, which would normally require commercial financing, but if my renovations include converting into a 4 plex, it should be eligible for the 203k. Anyone have any experience or advice on this subject? So far I'm aware of several things I have to be taking into account.

Property zoning?

renovation costs (including possible permit requirements)?

Architecture requirements?

Does anyone have any advice or experience with this kind of thing? Any additional concerns?  I'm sure it's more expensive than just knocking down a wall.  Most likely it would be merging two kitchens into one, covering one exterior entrance, and turning one extra living room into another bedroom, anyone ever undertaken a job like this? any advice, especially on costs?

Also I'm looking for a good real estate agent west of portland, OR. that is experienced in rental comps.  Any advice on where to look?

So, I think since it's a "he said, She said" situation you should simply let the local authorities handle it.  If the neighbor had a legitimate case he would already have called animal control, since he's shown a willingness to do so before.  His unwillingness to do so this time makes me STRONGLY disbelieve his version of events, especially since his argument about being "uncool" is obviously a lie, since he wants you to evict the tenant.

I'd let the neighbor pursue whatever his legal rights are.

I've been crunching the numbers on many potential properties for my first REI. I'm looking at MFH for buy and hold rental properties. However, whether the property is going to cash flow positively depends heavily on getting the rental price correct. So, what tools are you guys using to estimate the rental "comps"? I'm using realtor, zillow, craigslist, rent.com, rentometer.com, etc..

Do you use a real estate agent? if so how do you find one that is knowledgeable about the rental comps, and not just the property value?

Specifically I've found a Quadplex in Casa Grande, az, It should cash flow very positively for me, but I'm nervous that I'm not doing enough legwork. The quad is 4x 2bedroom units, my research tells me they should rent for $550-$600.  I've verified that next door is a triplex of 1 bedroom units that are currently occupied by renters at $425 per month.. I'm concerned that I've discovered a 1 bedroom difference that supposedly accounts for $150 monthly  difference..  Certainly the owner next door could just be under charging for rent, but how do you guys go about this?

Also any specific advice for looking further into this property in Casa Grande? know any agents or investors in the area?

Not silly questions at all John.    I'm a medically retired Prison Guard.  So, my income is SSDI, my wife Is a Nurse who receives her income from her Long term disability insurance.  Basicly we have stable income, without a requirement to commute to work.   I haven't visited the property since I live in colorado currently, however, we want to relocate either to vegas, phoenix, or seattle.  So were looking for the best investment opportunity to decide where we move.    As a result I'm trying to do as much legwork as possible long distance, before investing in a plane ticket and trip to check out a property.

After looking further into this area it looks rough. really rough.  I'm not scared of living rough for a short time, if this is still a good rental long term, but it's sounding more and more like the property is overpriced by quite a bit for the area.

Thanks for the feedback, pm's sent.  I'm super nervous that two locals have suggest my rent estimates are too generous. How do you guys suggest I evaluate local rent? craigslist?