All Forum Posts by: Dave Hall

Amount owed is $289,500.

My BIL owes more on the house I rent from him than it is worth. He wants to unload it. Doesn't care if he makes money, just doesn't want to lose money. He is completely willing to do something creative, including recouping some money later on down the line. The house would need quite a bit of work if he were to put it on the market. I don't have the money to make those repairs, but if I'm going to own the house I would definitely want them done. His mortgage is an equity line of credit. Can you help me brainstorm some options? Wrap around? Contractual taking over of payments? He borrows the fix up $ through the Equity line of credit and then we purchase at a lower price with the understanding that when we sell the house later he can recoup that money? Obviously we don't want to buy a bad deal, but we'd also rather not move. Thanks for your ideas.

@Ozzy Smith:

Thanks Ozzy.

@Matt Motil:

Thanks Matt!

Hey Biggerpockets,

Any good multifamily contract writers and closing attorneys that work in the great state of Ohio?

Hello,

I recently submitted an LOI on a low income housing multifamily property which has tax credit obligations through 2017 - the end of the 15 year period. I am in the first round of negotiations and the owner has asked for "bonded assurance that the tax credit requirements" be honored so he doesn't have a tax issue in the future.

Do any of you have any expertise in this area? I suppose I need to know how much of a surety bond to post and some ideas about what I should get in exchange for this concession.

The seller believes the property is worth $1.7M. I have initially offered $1.28M and the seller countered with "an offer closer to $1.7M." I estimate that the property will be worth $2.28M after minor rehab and lease up. The property is a C in good shape with 85% occupancy. The area is a C- to D+ but there are some strong signals that employment in the area will be increasing soon.

Thanks,

Dave

@Ericka Parrott:

I agree Ericka. How much do you think cap rates vary in Atlanta? Can we go from 4 caps to 15 caps? What's the typical spread, if there is such a thing? I'm looking in the 30311 zip code and I've been told by a couple of local professionals that the values vary widely across the zip code.

My goal is put together a system for evaluating submarkets and even neighborhoods from a distance, whether these submarkets are in Atlanta, Indianapolis, or any other larger market. Any suggestions? Any online or offline resources you could recommend?

Thanks,

Dave

@Joel Owens: I'm looking at an apartment property in Atlanta and wondering if it is in a crap area of town. What's your criteria for that? Where do you draw the line and how would you recommend assessing neighborhood quality from a distance. So far, I have called on local CPMs to give me feedback. Any other suggestions?

Thanks,

Dave

@Pat McGrath:

Hey Pat,

I have been progressing but not in Chico. I'm working on wholesaling apartments out of state. It's hard, but I have some experience with apartments. I sold 2 properties as a broker in Texas over 15 years ago. So I have a small head start there. 

My local market is very hot right now for sfh investment. I will probably return to it at some point, but I'd rather pursue better markets first.

Thanks for asking.