All Forum Posts by: Scott Sewell

Great Job Brandon! Keep 'em coming. Didn't see the $100 jeans though.

You've gotten a lot of good advise here William. What a resource this website is (thanks Josh)!
I'm not as experienced as many you have already been advised by but, IMO the decision comes down to three factors: your tolerance for risk, the term, or amount of time you have to invest (or recover from bad investments), and your acumen as an investor.
So... If borrowing money causes you to lose sleep at night, 4% is way to much to pay... If you're 20 years old and starting out, you're in a completely different position than if you're 60 and looking at retirement soon... and finally, it takes time, education, and effort to learn how to make money, and none of the above to loose/blow it.
I think Emily's approach has a lot of merit.
All that being said, what you are contemplating is VERY close to how my wife and I got started 8 years ago. (2005 by the way, John) We now have enough equity to pay off our debt if we chose, plus enough passive income to make a substantial difference in our lives.

Count me in. Brandon Turner, Are you gonna wear the $100 Jeans?

Bill Robinson: In our area the FMR has to cover the rent and the basic utilities, (not phone, cable, etc. & we don't have AC) whether paid by the landlord or tenant.

Karen Margrave Ditto on the dealing with business people vs. homeowners. Just have to try and define an answer/costs.
So, can we expect parts 5,6,7,etc...? Would love to hear how you do your research on markets and determining the appropriate use for a property.

Thanks for the input guys. Here's a little more info (especially for you Karen). The adjoining business actually has 5 contiguous lots on the next street over. 3 (zoned for business) contain the existing business operations and their parking. My friend found out they have intensions to expand their recieving/back of house/logistical areas into the existing parking area, not the other 2 (zoned multi-family)vacant lots. I don't know if their development plans will require them to provide additional parking to make up the loss, but if so that could work in our favor, i.e. they might like to get some additional ROI on that expense. What doesn't help is that the lot we would like to encumber is the 4th lot and would cut off the 5th from the business. There's alot more info I could provide and another possible solution but, I guess until I can do some face to face and see how the management reacts, this is all speculation. @ Karen Margrave: I read part 1 right after the last time we talked, just finished 2&3, and can't wait for 4. Now, more than ever, I want to be a developer! Great stuff Karen.

Hello all,
Looking for some advise on approaching someone to lease/buy additional parking space for a potential acquisition. We're looking at an 8 unit multi family that seems to pencil well, in a good area and with good potential for repositioning. The main reason we haven't made a move is the parking. It has 9 spaces and NO on street parking (just no room for it) Code would require at least 12-13, but the bigger concern is as we upgrade clientelle, they are much more likely to have 2 cars and this section of the road is already over crowded which doesn't help the curb appeal of the property.
A possible solution is a vacant lot directly behind the subject property owned by a local business. I've had a friend approach them about leasing this (I'm out of town currently) and they didn't say yes, but they didn't say no either. I plan to approach them when I get back.
So my questions are these:
What would be your strategy to get them to say yes at a reasonable cost?
Would you pass on this cost in the form of parking fees to tenants? (thats kind of unusual here)
Or would you just roll that cost into expenses and look at the numbers again?

Ditto to Randy F.'s reply and the comments about Zoning issues. We have an old house with 2 two car garages, we rent one separately (it has access from the alley behind the property) for $350 and it generates our margin for the property. Doing this changed it from a break even deal to cash flowing.

Please... please... please! Get it tested for lead &/or ASBESTOS! I've done many of these and all were at least 2% asbestos. Never sand a popcorn ceiling without testing, (I can't imagine sanding one even if it came back clean) THIS COULD CREATE A SERIOUS, LONG LASTING, HEALTH HAZARD.
IMO your options are:
1) leave it and paint (I like the spray,spray, spray idea)
2) Strap it (1x4 screwed perpendicular to the framing) and new drywall, tape, texture? and paint.
3) WET and remove and I mean wet. As a home owner you are allowed to do this. Cover everything in the room with 6mil poly with taped seams starting at the floors and working up (lap walls onto floors etc.) I prefer the strapping method but, I still poly & tape the floor and throw the poly away in sealed (duct taped) 6mil contractor bags.

Thanks to all for the information. Sorry I didn't respond faster, I'm traveling outside of Anchorage for the next two weeks and connectivity is spotty. Most of the issues noted above shouldn't be a problem. The property has done very well for us and we would have no problem showing the (local) bank good financials and an ever increasing bottom line from it. But i do like the advise about staying in touch with the bank - will do!