All Forum Posts by: Colin O'Neill

Are you going to have a place to stay until they vacate? One option is having the seller give the tenant the notice that they will not be renewing their lease (with proper time of notice). Another option if you have somewhere to stay for the time being is to contact the tenant as soon as you close and let them know that you plan on not renewing their lease and let them know of your plans of moving in to occupy. 

@Lynnette E. When he originally moved downstairs, I added the son to the lease just so I had it documented. I never thought of raising rents actually. I like that approach, and I might actually give that a shot. Thanks so much for your ideas!

@Account Closed Thanks for your insight, I’ll see what I can do!

@Joseph Cacciapaglia , I have actually offered to pay for his moving expenses PLUS his first months rent for his next home, but he wouldn’t take it, and claims “money’s not a problem” but it clearly is. 

I closed on a top/bottom duplex BRRRR deal where a father and his son were staying in both the top and bottom units. The son on top, and the father living in the bottom. When I closed, I had the seller give a 30 day to the top unit so I could start rehab. That went smoothly and the son just moved downstairs with the father for the time being. The top unit is just finishing up rehab and ready to be rented out in the next week or so. I gave them a 30 day notice that I wouldn't be renewing their lease Sometime late February, so they had until March 31st to leave. I called mid-late March and they said there's no way they'll be out in time and need more time, which I gave them an extra month to do so, so they had plenty of time to find a new home (Mistake). After talking to them many times throughout the month about finding a new place, it seemed the only response is "We are looking, we cant find anything but we'll let you know." Clearly, they don't want to leave, nor does it look like they're going to. Keep in mind, I cannot evict because of the eviction moratorium.

Currently, as far as I know, it looks like the father moved out (who was paying the rent for the bottom unit) and now only the son is living there (unemployed, and claims he cant receive unemployment or stimulus because he hasn't claimed taxes in years). 

Note: This property was bought with a private note at 10% interest with monthly interest accruing around $1100/mo. I can't get the tenant out, so I cannot rehab the property. If I cant rehab, I cant get markets to rent and refi. So my biggest concern is that by the time the work ends up getting done, prices will have dropped (including my ARV) and lending will have tightened so getting money back out will be a much slimmer chance.

Any suggestions on how to go about this situation? Anything will help, thanks so much!

I believe that when people first think of getting into real estate, they do so because of the largely advertised ideas of clout and insane amounts of money associated with it. I think that having massive goals is very important but there must be a reason why you have that goal. If it is just to have that $100M to say you have it and that's it, theres a slim to none chance that you'll get there. If there is something pushing you such as legacy wealth for future generations, paying for children's college, making changes In the world and impacting society, there is a much larger chance of you getting through the hard times in business that you're sure to face. Having a "why" like they talk about in a lot of interviews of successful people, is paramount. Good luck! 

Investment Info:

Small multi-family (2-4 units) buy & hold investment in West Allis.

Purchase price: $149,000
Cash invested: $8,500

I used an FHA Loan to get into the property. Closing costs and down payment totaled out to around 6k. After I moved into the property (upper unit), I immediately began rehabbing my unit. The lower was rented from the previous landlord, and the tenant is awesome; she just renewed her lease last month for another 12 months. Cash flow after moving out/refi out of PMI will be $450/mo. 450x12months=$5400/yr. $5400/$8500 into the deal = 63.5%ROI on an FHA House Hack.

What made you interested in investing in this type of deal?

After watching a lot of BP Podcasts and seeing others around me investing, I felt like I needed to save money and do what they were doing. Longterm financial freedom is the underlying 'WHY'.

How did you find this deal and how did you negotiate it?

I am on an email list with my realtor for properties that come on market in a few cities. After analyzing this deal and running the numbers, I felt like it could be a good first property for me. After inspection, I got $1500 in credits for a few items I felt needed to be replaced, which saved me $1500 in out of pocket closing costs. After satisfying all contingencies, the sellers were easy to deal with and allowed necessary time for everything, and we closed 1.5 months later.

How did you finance this deal?

FHA Loan, 3.5% down

How did you add value to the deal?

Rehabbing the unit I live in, and gained ~ 10k in equity when I closed (Appraised 10k higher than I paid).

What was the outcome?

Currently House hacking and my housing expenses are only $250/mo until I move out, which I will then be $600/mo above and beyond my expenses.

Lessons learned? Challenges?

How the real estate deal works from start to finish. Being able to pull the trigger and get into the first deal was the hardest part because I didn't know what I was getting myself into.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, I worked with an agent, a Lender, and a personal friend who helped me through the deal tremendously. Both Miranda Zuege (Realtor) and Christian Gridley (Lender), along with the nonstop help of my close friend Chris allowed me to get through the deal seamlessly.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in West Allis.

Purchase price: $149,000
Cash invested: $8,500

I used an FHA Loan to get into the property. Closing costs and down payment totaled out to around 6k. After I moved into the property (upper unit), I immediately began rehabbing my unit. The lower was rented from the previous landlord, and the tenant is awesome; she just renewed her lease last month for another 12 months. Once I move out of my unit or refi out of FHA to get a tenant in sooner, total rent will equal $1770/mo and I will be cashflowing around $400-450/mo. 400x12 = 4800/yr. 4800/8500=56.47% ROI from a house hack using an FHA Loan after the first year. Awesome!!

What made you interested in investing in this type of deal?

After watching a lot of BP Podcasts and seeing others around me investing, I felt like I needed to save money and do what they were doing. Longterm financial freedom is the underlying 'WHY'.

How did you find this deal and how did you negotiate it?

I am on an email list with my realtor for properties that come on market in a few cities. After analyzing this deal and running the numbers, I felt like it could be a good first property for me. After inspection, I got $1500 in credits for a few items I felt needed to be replaced, which saved me $1500 in out of pocket closing costs. After satisfying all contingencies, the sellers were easy to deal with and allowed necessary time for everything, and we closed 1.5 months later.

How did you finance this deal?

FHA Loan, 3.5% down

How did you add value to the deal?

Rehabbing the unit I live in, and gained ~ 10k in equity when I closed (Appraised 10k higher than I paid).

What was the outcome?

Currently House hacking and my housing expenses are only $250/mo until I move out, which I will then be $600/mo above and beyond my expenses.

Lessons learned? Challenges?

How the real estate deal works from start to finish. Being able to pull the trigger and get into the first deal was the hardest part because I didn't know what I was getting myself into.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, I worked with an agent, a Lender, and a personal friend who helped me through the deal tremendously. Both Miranda Zuege (Realtor) and Christian Gridley (Lender), along with the nonstop help of my close friend Chris allowed me to get through the deal seamlessly.