Hey BP community!
Today I had to call the cops on some teenagers who were presumably skipping school and breaking into the vacant duplex next door.
Quick reminder. I am house hacking a duplex at the moment and I moved in March 2021.
The duplex next door has been vacant since February of 2021 when Texas had the freeze and grid shut down. That resulted in pipes busting and then vacancy.
Last year I was confused for a while about it. Then I saw some guy pull up and check the mail. And I asked him what the deal was and he explained the pipes bursting situation and that he was the previous tenant.
Sometime later. I am in the market to get deal flow so went ahead and skip traced to find the owners number. I give him a call.
“No I’m not interested. Im going to rent it and keep my cash flow”
I hang up and bow my head in despair
Months later duplex is still vacant. I see contractors in and out but the pace is so slow. They finally put one side up for rent and I use my agent privilege to go check it out. It was nice! But for some reason the second unit also had a lock box on it with the same code. So I let myself in. That unit was still in shambles (well not really. Probably just a flooring and drywall rehab with potentially some new appliances).
A month goes by and no tenant moves in. The rental listing is withdrawn. So I call him up and said hey how’s it going and he mentioned that he had got a new property manager and they are working on getting it rented. I ask him if he’s willing to do seller financing or anything but he’s still not interested. Well okay I’m still available if you need anything. I’m in the area and have contacts to get jobs done. Hang up.
Now a month or two goes by and school has started up again. I begin to see some teenagers break into his property. I call him to let him know. He tells me to call the police which I did. But they show up to late. They fled before they were caught. This goes on a month and sometimes they break in without my knowledge and what not.
Then one day I see two guys going in the property. I assumed they were contractors. I asked them what was up. And they said they were estimating the job repairs. Well okay cool. They let me walk in and wow these teenagers completely wrecked this place. They broke the appliances cabinets many holes in walls. Busted down door. Broken fence and gate.
Finally today I saw some teenagers in the property. I called the police and they pulled in swat style and arrested 4 teenagers. I saw the action through my front window. I was glad no one was hurt.
I texted the owner what had happened and he said “thanks”.
Now that’s the story but I really want his duplex. I don’t have any capital of my own to deploy but good ol bank of mom can come in handy.
The duplex ARV would be roughly 185k and with one unit done and the other smashed. I imagine the repairs would be less than 20k. He just got a new roof installed.
What can I do to get this guy to sell me his duplex. My ideal strategy would be to BRRRR this.
0.7 x 185k = 130k
130k - 20k = 110k
Should I say. Let’s just do like a private lender deal where I give you 20k upfront and pay interest only payments for 6 months until I can refinance and pay him a total of 100k plus the interest?
Let me know your thoughts and suggestions. Stay healthy friends !!
-Cristian
