All Forum Posts by: Andrew Whicker

Hi,

First off, I tried searching but all that I came up with was 'yellow letter' type questions.

My question is this:

My offers tend to be low enough on properties that I would like to attach an explanation on how I came up with the offer. If I just throw them a number, they think I'm crazy. If I can give them an explanation, hopefully they'll feel better. It also reduces the chances of something getting mis-communicated between both agents.

So the question is, do the people that write these include details like 'I need $100 / door and 15% COC' and my mortgage payment is X and therefore...

I don't care about giving them numbers that estimate their costs, but I'm not sure if I should be so straightforward with my expected income and my expected mortgage payment, lest I lose some of my negotiation power down the road.

If it were up to me, I'd sit down with them and show them my excel sheets, but I'm an engineer so what do I know?

@Bill S.

I have met one of the tenants whom I would like to stay (from a numbers standpoint) and he was def. a complainer.. I was actually concerned about how re-signing leases would go when I would want them to all sign year long leases while they've been on these month to month leases.

I know they aren't going to like me having them pay electricity. My one saving grace would be that I would plan on putting new windows in right away, which is something that needs to be done.

I don't have unlimited funds, but I am willing for my first property to be live-in up to a year. As I have a job on the side, I can fund as I go. However, this property may just be too much for me.

Thanks for all your advice,

All signs point to a very mis-managed rental. I agree with you 100%.

On top of that, I'm concerned that there are many unknown unknowns in the contract area (estoppels being an example). I'm very close to calling it quits on this property. The owner seems very lazy with information and the property was obviously left to it's own devices with little to no management. While that could provide quite an upside for a post-rehab rental situation, it could also lead to a money pit.

The owners didn't even have the electricity (heat) to two of the units separated, so the owner is actually footing the electric bill (avg. $230 / month). Amazing.

@Bill S.

@Kimberly T. , @Roy N.

Okay, an estoppel letter looks like exactly what I need.

The tenants are in fact month to month based on an 'understanding.' Basically, we have old leases and the tenants are still there. So.. the assumption is that they are month to month.

This is something that I would have never known about: estoppel agreements. Thanks for the info.

Cheers,

@Kimberly T.

@Roy N.

(Forgot to add your names to above post)

Also, what is estoppels?

Thanks for another great response.

Stated another way: These security deposit, pro-rated rents, etc in my purchase agreement - is this something that I have to ask a realtor to do or is this something that they should advise me on? I'm getting really frustrated right now. She knows this is my first house.

Thanks for the responses.

The responses seem obvious. I'm having a hard time with communication on this project. It being my first house, I'm getting a bit burned out on bad communication.

Have you asked for an extension on due diligence? Is it understood if you don't have the information you have asked for from the seller?

Hi,

A few facts:

- Triplex under contract

- 100% occupancy

- FHA loan secured

- 100% tenants on month to month leases

- Due Diligence stage is almost complete.

The questions:

- The tenants are long term and I think that any hope of getting a security deposit from them is low. I would like to live in the unit that needs rehab the most (currently renting very low, $330 / month). I was thinking that instead of using the eviction process, I could pay him a month of rent in order for him to leave quietly. How do I put this under contract or is it simply verbal?

- At what point does the eviction process start while the house is under contract? I am still in the due diligence stage and I did not want start an eviction process, find out I didn't want the house, and then have to stop the eviction process.

Hi @Ned Carey

Rehashing an old thread here, here's the process I have in mind:

1) Find interested investors

2) Seek out deals for them

3) Make offers as normal

4) While the property is in contract, sell the contract / property to your investors

Is this correct?

Thanks,

Seller quit trying for non conformance because of parking issues. The property needs 6 parking spaces total. There is a free standing garage for two cars.

Municipal code states that street parking will be considered on a case by case basis. At least that is how I read it.

I will need to measure the lot and go to the city to let them decide if it passes or not... right?

Cheers,

Andy

(I hated zoning laws as a matter of principal before this, now I hate them out of principal and practicality)