All Forum Posts by: Daniel Villagra

Looking forward to this. Thanks for putting it together @Joseph Scorese

@Michael P., assuming the sellers gives some credit or repair, it would bring my cashflow down to $245/unit. I guess I'm reaching out to see 1) are the items listed above deal-breakers or 2)  how people analyze time involved in a project even it cash flows as your mindful of wanting to buy another.

@Stephen Brown, thanks for the feedback. My mortgage would be low since I'm going 25% down and I have the safety net of cash reserves. I'd essentially be buying myself a project and many invaluable lessons which I welcome knowing it'll pay-off in the long run in other deals. Getting it updated /cash-flowing would be nice cause it'd be fine for years to come but it would also tie me down (cash/time) and maybe slow me down from moving on a 2nd deal this year or next. With how hard it is to find deals, I want to make sure I'm not walking in to a "bad" deal cause I'm taking whatever I can get. Thanks for the input!

@Jonathan Greene, there has been minor leaking from what the tenant has shared. Inspector mentioned its likely due to some missing shingles and gutters/downpipes... As for the knob and tube, you're right in that they never went all the way to the 2nd or 3rd floor. We'd thought to ask for a credit and update. Lastly, the crack in the sewer line is in the basement leading under the foundation to the main road. We did not send the camera in because they didn't have the equipment but could order that if I elected too. I'm considering it IF we deem its not too much of a rehab for a newbie like myself.  Appreciate the feedback

Morning BP community, 

I have an offer accepted on a duplex (built in 1905, $150k, $700/mo cashflow, 2 - 2nd/1bath, total of 2300 sq. ft. and rented out), and the inspection report has left me on the fence. Do I ask for repairs/price reduction OR do I walk? 

Most concerning items: 

- Roof is 20-25 years old and needs replacing. 

- Has knob & tube in the 2nd/3rd floor. 

- Exposed cast iron sewer line in the basement is showing a small crack/leakage (I can replace) but I'm concerned about the corroding under the foundation to road. 

I projected 5k for each unit to modernize/rehab and wouldn't be willing to accommodate additional expenses. Ideally the seller reduces/fixes, but would you experienced investors still move forward on the deal? If there is any valuable info I have left out that'd help you give me better advice, please let me know and i'll throw in the thread.

Thanks everyone!!

Appreciate everyone in the BP community. I’ve been learning from y’all beyond belief!! Thought I’d ask you guys before making a commitment:

1) do you avoid properties all-together that have knob and tube wiring?

2) if not, do you low-ball an offer accordingly in hopes to use that money to update wiring or ask the seller during inspections to update?

3) please throw any golden nuggets out there I may not be thinking or aware of.

Thanks everyone!

Hi everyone, 

I need to make a decision. What would you do? Found a duplex (200k, fully rented, 2k/month), want to buy another investment prop in 1-2 years and buy myself a home in the same time-frame (getting married, renting now). I have 100k saved, no debt, make 100k+ and want to make the right move.

Thoughts?

Thanks, Bob! I'll check it out now

Been seeing folks say "invest in B & A's", but are there tangible things you use to create that grade? (School district, income level, crime-level, etc.)

Hey y'all, hope this is finding everyone in good health and good fortunes.

So I've been practicing analyzing deals, reading books, but I want to make sure one of the foundations I'm building upon is right: my buying criteria. For the senior investors out there investing in single-family homes, what is your buying criteria? (I apologize for the lack of specificity with the question but I've lucked out on finding a detailed answers online, so I figured Id ask the BP community)

Thanks and best of luck!