All Forum Posts by: David Collins

Quote from @Dan Weber:

@David Collins I have seen the property you are analyzing. I would avoid this one at all costs. It has some of the worst structural issues that I have ever seen. I wouldn't pay a fraction of what they are asking for, even for just the land.

 Also, is the seller/seller's agent required to disclose that information in Maine? Because it is described as a "good opportunity for investment or owner occupy," so it sounds like it is being marketed as livable. Unless the seller's agent is unaware of the structural issues?

Quote from @Dan Weber:

@David Collins I have seen the property you are analyzing. I would avoid this one at all costs. It has some of the worst structural issues that I have ever seen. I wouldn't pay a fraction of what they are asking for, even for just the land.

Thank you for the heads up! It definitely sounds like something I should avoid. I will keep an eye out for deals in the Augusta area, and I would greatly appreciate your assistance as I do not have a buyers agent yet. 

Quote from @Ed Emmons:

You will want to have someone locally look at it unless you want to make the drive. If it has been vacant over a year several towns up here won’t allow it to be anything but a single family. If it is listed and really cheap, it may be a tear down as there are a lot of investors that comb the mls. If it is anywhere near Bangor, I know the area well and am not buying. So if you want to pm with with more info I may be able to help more.

Thank you, Ed. I’ll definitely be reaching out to discuss it a bit more.

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Hey everyone! I just went pro and I am running the numbers on a deal my father and I are looking to take on. This will be our first rental property so I'd really appreciate any assistance going over my numbers or maybe connect with others in the area that may be able to help.

The property is a pretty large triplex in central Maine. It is currently not rented and needs a little bit of work. From what I've found it appears the seller is an out of state owner who purchased the property in 2018 for $35k and put quite a bit of work into it. It is currently freezing in Maine and the seller has the utilities turned off since there is nobody occupying the property.

This deal caught my eye because it is listed much lower than any 3 family that i've seen listed over the past few months. I've found a few comps in the area that have sold for around $220k-280k depending on condition and size, and this one is listed at $179k. This triplex is much bigger than the others, too. It has 3 large 3bd units, two of which have 2 bathrooms (potential for adding units in the future??). It doesn't seem to need much work, just cosmetic stuff it seems from the photos and the description on the listing. However, this property is not separately metered, and that is something I would like to take care of before renting the units, as well as the cosmetic stuff ofcourse. I've been looking into submetering each unit and I've found a local company that can do it and handle the utility billing afterwards. I put $20k in my repair costs assuming that should be enough to cover the submetering and supplies to spice up the units. I ran the numbers for after the renovations are finished, and it seems to cashflow pretty well, even with using conservative numbers in the calculations. Also, since we would be purchasing it with a bit of equity, and adding a bit with renovations, it would appear to have a good amount of equity as a safety net incase home prices drop, or to reuse for future investments.

I would really appreciate a second set of eyes or maybe some warnings I should look out for in a deal like this? Maybe some info on the submetering and renovations?

-Purchase price is asking price from the seller, closing costs are estimated at 4%
-Conservative estimate for ARV, Comps are closer to 250k+
-Repair costs budget set at $20k, home only needs submeters and cosmetic work (have not inspected the property yet)
-down payment set at 25% incase the bank requires it, however, 20% preferred.
-Interest rate set conservatively at 8%
-Conservative rent estimate of $850, should rent for approximately $950
-taxes were provided, insurance estimated at $100/month
-5% for repairs, capex, and vacancy. 0% management, will be managing myself
-water, gas, electricity set to 0 considering they will be submetered

*This link comes directly from our calculators, based on information input by the member who posted.

-Purchase price is asking price from the seller, closing costs are estimated at 4%

-Conservative estimate for ARV ($210k), Comps are closer to 250k+

-Repair costs budget set at $20k, home only needs submeters and cosmetic work (have not inspected the property yet)

-down payment set at 25% incase the bank requires it, however, 20% preferred.

-Interest rate set conservatively at 8%

-Conservative rent estimate of $850, should rent for approximately $950

-taxes were provided, insurance estimated at $100/month

-5% each for repairs, capex, and vacancy. 0% management, will be managing myself

-water, gas, electricity set to 0 considering they will be submetered

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Hey everyone! I just went pro and I am running the numbers on a deal my father and I are looking to take on. This will be our first rental property so I'd really appreciate any assistance going over my numbers or maybe connect with others in the area that may be able to help. 

The property is a pretty large triplex in central Maine. It is currently not rented and needs a little bit of work. From what I've found it appears the seller is an out of state owner who purchased the property in 2018 for $35k and put quite a bit of work into it. It is currently freezing in Maine and the seller has the utilities turned off since there is nobody occupying the property. 

This deal caught my eye because it is listed much lower than any 3 family that i've seen listed over the past few months. I've found a few comps in the area that have sold for around $220k-280k depending on condition and size, and this one is listed at $179k. This triplex is much bigger than the others, too. It has 3 large 3bd units, two of which have 2 bathrooms (potential for adding units in the future??). It doesn't seem to need much work, just cosmetic stuff it seems from the photos and the description on the listing. However, this property is not separately metered, and that is something I would like to take care of before renting the units, as well as the cosmetic stuff ofcourse. I've been looking into submetering each unit and I've found a local company that can do it and handle the utility billing afterwards. I put $20k in my repair costs assuming that should be enough to cover the submetering and supplies to spice up the units. I ran the numbers for after the renovations are finished, and it seems to cashflow pretty well, even with using conservative numbers in the calculations. Also, since we would be purchasing it with a bit of equity, and adding a bit with renovations, it would appear to have a good amount of equity as a safety net incase home prices drop, or to reuse for future investments. 

I would really appreciate a second set of eyes or maybe some warnings I should look out for in a deal like this? Maybe some info on the submetering and renovations?

Greetings, everyone! I thought of a new strategy idea today that I wanted to present to the biggerpockets community and see if anybody knows if it is possible or if they have done it themselves. So to start, if I were to purchase a 3-4 unit property that needed work with a hard money loan of about 70% ARV, and then purchased and renovated the property, would it be possible to refinance out of the hard money loan and into a FHA loan if i planned to live in a unit? That way, the FHA loan would be for 96.5% of the homes value, and the hard money loan would only be for 70% arv plus points and interest. This would technically leave a good chunk of change left over after paying the hard money lender.