All Forum Posts by: Danny Harper Jr

so if an LLC is buying my property, as part of the negotiation,

what if i were to ask for equity rather than a higher dollar amount?

is this possible? and if so, how would i calculate the value of the equity

relative to the dollar amount?

hi, i’m in pennsylvania, and every time i win against my tenant in court and am awarded possession of my property, the tenant simply appeals the case within 30 days (usually on the 30th day) with no justified defense, buying himself months at a time while the courts issue a new court date . is there anything i can do to prevent this next time? edit : he bought himself 10 months by doing this and more to come unfortunately 

 very true and helpful , thank you!

before renting the place out im going to have to use my current employment to put 30K into repairs. after doing that, im going to get a 40K HELOC for the rest of the repairs. the "positive cashflow" figure I originally had, takes the 40K into consideration, but not the other repairs that im doing up front.

good point.  

the tenant was in there for 6 years, yes. but I only owned it for 1 year. I have been trying to evict the whole time but covid restrictions have been getting in the way. I would like to do a nice renovation, in order to attract higher quality tenants.

thank you for your responses! in response to 2. I was gifted the house.it was paid in full, so it has no current mortgage. if I sold it right now, i can turn a $40,000 profit free and clear, because 40 is a low ask for it in all honesty, so the rehab cost would be my only expense.

in response to 3, the $1320 figure includes payback on a HELOC, that I plan on using for the final project of repairing the siding. it also includes taxes for the year, CAPEX, vacancies and repairs.

id recover my 70K rehab costs back from rent in 5 years.

and then also would have about 120K in equity by then assuming the property doesn't appreciate or depreciate, thats a 50K profit within itself.

should I be trying to make more than that?

its a duplex. I own it outright. it may need about 60-70K worth of work over time.

the current value is "40K" according to realtors because its a fixer upper. but its livable! and functional. even (at times), comfortable! I live in one side and a (bad) tenant lived on the other side for about 6 years. (long story) but houses on my block are selling for about 120K right now if they're finished. my property is the biggest in my neighborhood for about 2 blocks, and I think if I can get it fixed up nicely, the equity can be at least 150. I have a nice backyard , a nice deck that wraps around, front yard, about 4000 sq ft. and its a corner house. my property looks across the street at 3 other houses and covers the same amount of space as them combined. 

I would like to rent it out. the rents would gross $2425 and pull in a profit of $1320 monthly if I can rent out both sides. am I crazy for wanting to keep this property?