All Forum Posts by: David Stott

A Rochester NY duplex is how I got my start. It's in the 19th ward. It essentially landed in my lap - it was the home my grandmother lived in for 30+ years, and when she passed away my father and his brothers sold it to me for around $63k. At the time, I was able to take a sizeable mortgage, and pay off my student loans. Fast forward 13 years, it's now paid off and generating 700+750 in monthly rental income, and worth maybe $70k. I put about $25k into it to spruce up the kitchens and baths, and it will soon need a new roof and front steps. It's managed locally by my dad and brother, but I live close enough to stay involved and show up and visit tenants when necessary. It's not problem free, but for the income it generates, it was a smart move for me. The neighborhood is holding steady with a mix of long time residents, students, and rentals.

Slow and steady wins the race. I would add that it's most important to know what's important to you. Personally, if i was starting a family and considering kids, etc . . I wouldn't place my happiness and quality of life into the hands of tenants that I'd be occupying a MFH with. For my family, only a single family would do . . but that's just us. Happy wife = happy life. Know what matters to her, and go from there.

Owning a property out of state makes it difficult to source prospective tenants during times of turnover, and therefore, I often employ the use of a RE agent to source tenants. When my current tenants executed a lease, nearly 5 years ago, there was an addendum/amendment added by the agents that essentially said that "in the event lessees purchase the property during the term of the lease, or during any extension of the lease or with 90 days of termination of the lease, the sellers/lessors agree to pay a commission equal to 6% of the sales price" to be split by the two agents.

Of course, my tenants have now expressed interest in purchasing and my question to the BP community is - after 5 years, am I still obligated by this amendment that I signed? I've had no contact with agents since they assisted with this lease over 5 years ago, and therefore, find it hard to believe that they should have a claim . . .

Any advice?

hi, a tenant has approached me asking if i'd be willing to sell to him. he is uncertain of his ability to get conventional financing, and has asked whether I'd be willing to carry back a 2nd mortgage that would amount to his downpayment. he's currently inquiring with lenders on his ability to structure a first mortgage. I have about $150k in equity in the property by my estimate, and therefore, would be willing to carry a mortgage in 2nd position for about 30-40k if the terms were favorable. anyone with experience in something similar who could provide me with guideance so that my interests are protected? thanks!

I actually have the same question. I am in the process of landing my 3rd investment propety.