All Forum Posts by: Drew Farnese

@Frank Uzzi

Finding a naked dude is definitely weird!!

I'm in the market for a multi family, and this week alone has been FULL of stories.

To start off, I guess some tenants just don't give a rats *** when a potential buyer is looking at their place...and they just hang out.

Awkward.

A few quick stories from this week.

They get weirder as they progress. ..

First place we went to there was a tenant occupied unit upstairs at a place and the downstairs was vacant. This guy was home with his family, making dinner then eating dinner as we're trying to look at the place. He knew we were coming, just didn't care. This was awkward but didn't really bother me at all, but my girlfriend felt extremely uncomfortable.

Next property had what I assume was a family of druggies.7. They all knew we were therr. We walk into a bedroom (the door was wide open) and a teenage girl is putting pants on. My real estate agent was sp embarassed, it was priceless. The girl didn't even care! In fact she was telling us to come in even though she was half nude! Weird!

Ok, now today- the strangest.

We go to a duplex in a very nice area, but based on the exterior the place probably needed work.

We go in the first unit (finally a vacant place!). Wreaks of cigarettes and generally just messy as hell. Snowboards tools and just crap laying everywhere. One bedroom has 2 padlocks on the outside of the door. I can only imagine what was behind that door. Another bedroom Wreaks of weed, and there are guns everywhere. Ok....

To the upstairs unit. OH! There's a dog on the porch. He's sleeping. Let me wake him up so he's not startled when I open the gate and attack us. Here doggy! Yeah, no. The dogs dead. We get closer. There's frozen blood coming from the dogs mouth.....

Let's try to ignore the dog- it's not our damn business. We go in, this tenant is home. 5 or 6 college kids. They did NOT want us there. It was very apparent, very awkward, and kinda had the feeling that it could get violent. So we said nothing about the dog and left pretty quickly.

We decided to check the barn before we left for good measure. The loft in the barn is pretty much a damn frat house, complete with 2 ****** wooden bars- and a stage with a stripper pole! Christmas lights and crappy speakers hanging from the ceiling.

We called the SPCA when we left. Hopefully they do something about the dog.

I'm sure everyone has a story or two. Bring them on!

I'm looking at a duplex that is split downstairs/upstairs. However, there is only one gas heater and one central ac unit feeding the whole house. I am just trying to get a ballpark price on running costs. I do NOT know much about hvac systems. The ac unit is big, but older and shows its age. The heater (based on a maintenance tag on it) is about 2 years old, again- don't know anything about it.

The house is in the Philadelphia pa suburbs and is about 2500sf. Built in 1901.

Feel free to chime in if you think it's worth adding a heating unit and then making tenants use window units/ or whatever you think is a better solution.

Thanks!

Thanks for the answers everybody. I do have a real estate agent working with me, and I'm not opposed to making a low offer. I just want to make my low offer sound more appealing.

Hey guys.

Over the weekend I came across a property that I really like. Based on comps in the area it is listed almost 100k over what it's worth. My question is, (and I'm 99% sure of the answer) but can someone try to negotiate an offer directly with the seller if The house is listed?

I guess you would have to wait til it expires?

My reasoning is that if you submit a low offer without actually talking to the owner they are much less likely to accept. Especially with the sellers agent in their ear telling them to pass on the offer.

Is it normal to submit an offer for 100k under asking price?

Thougts?

I will make an offer in the next 5 days!

@Brian Burke Thanks! You answered my question perfectly! When I was saying "start a business" I was referring to DBA and/or LLC, I did a crap job of wording my question :)

@Ted Jackson First, welcome to BP! I would recommend utilizing all the free info on this site! Its truly priceless.

Anyway, you need a lot more information before you can determine if its a good deal or not.

Firstly how did you come up with the 42k in rehab?

How did you come up with the 242K ARV?

What are the property taxes?

How would you be financing? How much down?

How will you fund the rehab?

Do you NEED someone to manage the property for you for 8%?

What is the average vacancy rate in your area?

I'm probably missing some other things we need to help you determine if its a deal or not, but I'm new here too :)

Hey @Mark Vejnar !

I'm new here too, but as you'll quickly see, the people on here are awesome! Everyone has helped me out a lot so far!

Anyway, just to point out the obvious, theres a whole bunch of educational info on the site, and the cool podcasts that you've already found.

Not that I know everything, but I have to ask - what makes you say you want 1500 rentals? I've learned here that that number doesn't matter as much as some think.

Would you rather have 1500 rentals with $5000 month cash flow and 1500 headaches, or would you rather have 20 rentals with $5000 month cash flow with only 20 headaches?

Hey guys!

Through reading and searching here, I found a part of my question answered - "Do I need to start a business to wholesale or can I do it personally?"

I understand that you do not need to start a business, but can anyone tell me the pros and cons as to starting or not starting a business for it?

Tax advantages are the first thing that pop into my mind.

Thanks!