All Forum Posts by: Darius Lipsey

I looked at the cozy listing and if I was looking for a rental some of the pictures would turn me away from even call to inquire more. the first picture with the tools and ladder on the floor, an A/C unit can be seen in the closet mirror. The door knob in the bathroom doesn't seem to match as well as the bare wood hand rail on the steps. I don't know much about your market so I can't comment there, but those things would alone would keep me from calling. Compared to market rents are you higher or lower?

Sam Bates One tenant I met is filthy to the point it concerns me and there may be a drug problem. I have an idea of the tenant I would like for that particular building mainly college students and/or young professionals. I do have maintenance repairs and cap ex built into the budget estimates at conservative numbers. Although I don't have a ton of on hand capital and reserves I do have decent and consistent income coming in from my job which I intend to keep and put towards the investment. Also I'm willing to do a lot of the work myself within reason to save on large contracting bills. The current rents for the property are about as low as they can be considering what's being offered and the state of the place and it cash flows. Overall rents in the area have been climbing. I would raise rents eventually, but gradually and only after putting into place value adds and upgrades. Considering it cash flows on the low end I think there's plenty room for market fluctuations. My biggest concern is that due to inexperience I'm underestimating how much it'll cost and how long it will take to upgrade the property.

@Chris Jensen Thanks for the input. My ideal tenant would be college students and young professionals. Preferably ones that care about their credit. I'd definitely focus on those upgrades first. Some other upgrades I have in mind aren't "necessary" but would make it so much more appealing even to tenants outside the target market.

Any advice on adding value to a multi family that's technically move in ready, but being underutilized? Considering house hacking a small multifamily that is currently fully occupied with month to month tenants. Financing is already in place and with very conservative numbers it cash flows, even buying at asking price. The current tenants in place are fairly low quality, but have been there consistently for some time and don't want to immediately leave. The rents are at market for what the place is, but I think there is a lot of value that could be added over time to change attract better quality tenants while increasing rents. The value adds would cost quite a bit of capital in time, effort, and cash. Considering I'm a new investor undertaking this seems really huge and I'm being told by other locals that it's very risky. I don't want to bite off more than I can chew, but at the same time I'm very ambitious and I'm not really scared to dive in head first. I still don't want to do anything stupid that could potentially take me out of the game before I even get started. The property is in a pretty desirable area I'd say a low B quality area and currently a C property mostly because of age lack of amenities. Thoughts?

Originally posted by @Josh Caldwell:

What is so amazing about this location?  Why does this location trump cold hard math? Are you thinking about appreciation?

In relation to where most residential multi families are in the area, this particular one is in what I'd say is a desirable area. Low crime, close to shopping, close to some of the nicer schools in the area, neighbors upkeep their space. I'm not banking on appreciation, but I'm also not intending to use the cash flow for anything other than reinvesting into the property. I don't think the numbers are bad, they just aren't great, but that's why I'd like feedback

Originally posted by @Gabriel Amedee:

@Darius Lipsey what are taxes? 

I would ask for rent roll or bank statements to show history of long term reliable tenants. 

Have you checked market rent in the area? How old is the duplex? 

What are projections for future rents and economic growth of the city/subdivision? 

Rough numbers sound good but we can't give you an opinion without more details. 

Hope to hear back from you soon!

1 unit is close to about market rent for 3/1. The second unit is a little bit below for a 2/1. Projections of economic growth is solid. There are several major colleges in the area so I'd say renters at least in general terms would be consistent. A semi pro baseball team with a good pro pipeline There are several businesses are coming to town within the next few years that are expected to bring a lot of jobs and income. The duplex itself is a little over 50 years old and with separate meters for gas, water, electric. Roof has been replaced within the last 8 years or so as well.

I've found a duplex in a great area that has tenants currently and from what I've been told has a great rental history. Seller is asking for around market value around 100k and rents at about 1500. Conservative rents hit 1.5% and with very very conservative estimates of expenses cash flow would be positive but not much. I'd like to think there are areas that I could I add value to the property for little cash and potentially raise rents a bit and raise the value of the property. It's not a great deal, but I still like it because the location is amazing. Thoughts?

Originally posted by @Lawrence Robinson:

Hello. Looking for buy and hold investors in the South Bend, Indiana area. I have 2 great properties that have been fully rehabbed. Let me know if you're interested and I'll provide details.

 Would you mind send a private message?

Just and update: after looking into this agent in particular more they have a reputation for taking on too much work and dumping clients by being rude and condescending. I have found a new agent that I've been working well with and has been able to get me results in a timely manner and really seems to care about my interest and building a solid relationship. Thank you all for the input. I can't wait to send another update after closing my first successful deal.

The majority of the homes I wanted to see with this agent were well below my approved amount but i wasn't big on them. This one property I am very incline to do because it's a good deal so I'd make it work and I can still afford. I have since started dealing with a different agent. And will make sure I do a better job of vetting before hand