All Forum Posts by: Doug Johnson

BP Family,

I recently closed on a Construction Loan, New Build in Florida (March 2021). The builder is still processing permits and they said it is taking longer than usual because of the increased demand. My concern is the increase of prices for building materials ( lumber, etc). Is there anything I can do on my end to hopefully not come out of pocket at the end of the build? 
 

Strategy- Buy and Hold
Type - Single Family Home, 3 bed, 2 bathroom

Appraised Value - 207,000
Loan Amount - 186,300

I purchased the lot cash for 12.9k ( this is not included in the 207k loan) 

Interest Rate- 3.25% 

I will be paying interest only payments until March 2022


The value of the land has doubled/tripled in value since I purchased in January 2021. 


Let me know your thoughts! 

@Joe Kelly true, thank you so much!

@Dennis Wayne I appreciate the advice. Thank you so much!

@Dan Weber thanks for the advice!

I’m most likely going to start a new lease and go through the normal screening process with the potential tenants. I will raise the rent compared to what I was charging the previous tenant as well.

BP family,

Question for everyone. What would you recommend to do in the below situation?

A tenant wants out of the lease because her mother (80 years old) needs more assistance so she has to move into an apartment with her that is on the first floor. She is currently living on the third floor in my triplex.

I told her she can sublease so she does not have to break our contract.

Today she showed the unit to a couple who is very interested.

My current tenant asked if they can take over her lease or sign a new one with me?

What is everyone’s thoughts?

Thanks,

Doug Johnson

@Aaron K. I would agree. Thanks for your input!

@Taylor L. It’s in a blue collar city. Thanks for your help!

@Steve Morris the cap rate was provided on the listing.

Yes, the rents range from 450- 525/month, ( all 2 bedrooms/1bathroom, central AC, electric heat, water and sewage is handled by tenant). Solid location near hospital and right next to high school. A lot of long term tenants - most units need updated. Listing price seems to me way to high- 889k

@Aaron K.  

Thanks for your help! My example is for an apartment building (22 units). Does that change anything?

@Aaron K.