All Forum Posts by: Connor McGinnis

@Glen Wiley great point. I already got this under contract for $30k below listing. Should give me cushion but I have already budgeted about $30k for current renovations. Any additional unforeseen issues because of power not being turned on could hurt but won’t completely kill the deal unless major repairs needed.

@Wayne Brooks great idea. I will look into this one. Could I contact an electrician to help with this? Would I need approvals to do this from the seller? Easy to potentially do myself? Let me know what you think. Thanks!

@Bill Brandt nothing in particular. Only thing that is worrisome is that the unit without power was the former owner occupant who damaged the property before moving out. Punched some holes in the walls. There was termite damage in the unit (not a ton of damage, mainly two rooms and a side door).

It has been foreclosed on for about a year so it has been winterized. However, they did turn on the water for me which was a good sign and it worked well for the most part. Low water pressure in some faucets.

Moisture damage below the sink and in a bathroom ceiling which is slightly concerning.

The rest of the duplex has just a bunch of cosmetic issues. Most kitchen appliances are not there already so those will already need to be replaced. Washer dryer is present in the unit without power.

Does this info change anything?

Help!

I have a duplex under contract and we are in the inspection period now. The inspection period ends in a week and we already had an inspector come out to perform an inspection on both units.

This is a foreclosed property that is bank owned and they are refusing to turn on the power for one of the units as they insist that it is an as is condition of sale. We wanted to get an inspection done quickly so we already had an inspector come out with only one unit having the power on. The other unit had the water on but not power.

The bank has been extremely difficult to work with up to this point. I have an investor that is helping me finance the deal in all cash so the investor will be my bank.

The property was built in 2018 and the other unit with power had no major issues and all HVAC’s, water heaters, electrical, etc all work fine. However, it doesn’t sit right to close on this property without having power on in one of the units.

Is there any way that I can call the energy company that is local and have them turn the power on for the day or any way that I can force the bank to turn the power on? I hate to walk away at this point as my apartment lease ends in a month but I also hate to get screwed.

Any help is much appreciated!

@Alecia Loveless wow that is great insight. That is great that I could potentially get money back if the warranty is not used. I will certainly be getting the basic washer dryer sets for my units.

It sounds like Lowe’s might be my best bet!

@Glen Wiley great to know thank you!

I am in the closing process of buying my first duplex. Both sides need new appliances including washer and dryer. Any tips on finding a good deal on appliances?

I hear that buying slightly used is the way to go. I have also heard that buying new and having a good warranty is worth the extra money.

Let me know your thoughts!

Hello,

I am looking to buy my first Duplex in the New Orleans market. My strategy is going to be house hacking the property. I have analyzed 300+ listings and crunched numbers on many of them. I have toured 6 properties so far as I have just connected with a realtor.

I have found two listings that I like so far. One in particular I like the most. However, this property is a foreclosed duplex and the bank owns it. It was built in 2018. 6 beds and 2800 SQF. Priced at $499k. Great location.

The property likely needs $10k worth of work.

I have heard that when writing an offer to a van owned property that the closing process can take a long time. My current apartment lease ends on April 20th and so I only have 3 months to close and move in.

My realtor also told me that banks can pull out from under contract late in the closing process if they receive a better offer which is scary to me.

Any advice on being able to write and offer and close this deal in a timely manner? Anything else that I should consider?

Thank you!

@Michael Behr - we have discussed it more and think that him helping me out 25% down would be a good route. That way, I could pay him back later down the road when I sell the property as he doesn’t need the cash back quickly. With more down, I can get closer to having positive cash flow on the deal. What do you think?

Hello,

I am looking to purchase my first duplex in the New Orleans market. I moved here almost a year ago now and know of a few growing neighborhoods.

My current apartment lease ends in April so I am a bit pressed for time.

I am working with a realtor on finding good investment properties now. My plan is to live in one unit and rent out the other.

My question is regarding financing the deal. I have about $50k cash that I can invest towards a down payment. I make about $75k-$85k a year depending on my sales.

However, my dad is a successfully real estate investor in the Midwest with about 600+ units.

We are trying to figure out what makes the most sense on how he can help me finance the deal:

-he makes a large down payment for me and I have less to pay back the bank and I can pay him back at a very low interest rate if any.

-he buys the property and I pay him back over time at a low interest rate (more risk to him)

I am sure there are other routes we can take as well so I would invite any advice or feedback that anyone has.

New Orleans duplexes in a good area go for $400k-$500k and that is my budget. Property taxes are high and cap rates are typically between 2-4% from what I have seen so far.

I appreciate anyone’s advice/insight in advance because this would be my first deal ever and I’m 24 years old.

Thank you!