All Forum Posts by: Frank Boenzi

Just curious as to what everyone would think a good purchase price on this duplex would be as an investor and based off the numbers you run? I have in my head what a good purchase price would be want to get other opinions. 

Duplex is 2/1 on each side. Both units completely renovated. 

Has one furnace for both units (4 years old) 

Two water heaters (4 years old)

New layer of shingles on the roof (second layer) 

Each unit will generate $900-$1000 in rent. 

Within a mile and half from downtown Grand Rapids.  Below is a picture of what the market here is currently doing. 

What would your purchase price be on this turnkey duplex?

Thanks! 

I moved a tenant into the upstairs unit about two months ago. It has been nothing but problems. Upstairs tenant is very loud and inconsiderate it seems and the downstairs tenants have been there for about a year. Have had no complaints about them. They have two younger children in the bottom unit. 

I have started the eviction process on the upstairs tenant. Have had four police reports and multiple complaints from downstairs tenants and property I own next door about this upstairs tenant. We are about 15-16 days in to our 30 day period. I got a text from the downstairs tenant saying that people were smoking cigarettes upstairs and it was seeping into their unit. She explained her child has asthma and it is very bad for him. 

I have no idea what I can do to solve the problem on the spot. The upstairs tenant is not cooperative and doesn't answer my calls. Any ideas on what I can do?

To me it sounds like before it was listed it was an off market listing. Essentially a for sale by owner deal. Him asking to pay 6% at the price you offered could have been based off what you offered. Which is a little ridiculous considering he was playing the role of a transaction coordination at that point. That is besides the point. If you got outbid when it got listed just means someone was willing to pay more and im sure they factored that in and the seller was then willing to pay the commission. I dont think he broke any laws even though it was a little shiety what he did. I just think this deal was poorly negotiated. 

Welcome to bigger pockets! 

@Dan Farkas Thank you for sharing! I will be at the RPOA event.. very excited about it! 

@Dan Gustavson I completely understand where you are coming from with the carpet. Id hate to see it but you could only accept dogs that are not on any breed restrictions ( I have two pit bulls). Or Ive seen it done the other way around where landlords advertise to people with breed restricted dogs. Long term tenant! 

You could make your qualifications harder for applicants and hopefully a more qualified tenant will be a little more responsible with the carpet and their animal. 

I have been seeing that people are very serious about their animals and even when purchasing a home they have their pets in mind. I am sure you will figure it out. In the end we can vet the tenants up front as much as we would like but you never know until you know! 

Best of luck! 

@Dan Farkas Care to share some Economists you like to follow just for everyone else who would like to learn more; including myself! 

@Ray Johnson Correct me if I am wrong but I have heard more millionaires are made in recessions compared to any other time. For obvious reasons a crash is never good considering people lose jobs, houses, families are destroyed but for people in a position to capitalize its a great thing! 

I am here in Grand Rapids, Michigan and have come across people and investment groups who bought 50-100 properties here for anywhere from $2,500 - $30,000. My neighbor across the street bought his property in 2011 for $15,000 and has it rented for $1,400 a month. Guy next to me quit his job in 2008 and bought 10 rental properties. He bought his duplex next to me for $34,000. There are currently 0 properties listed in out market for less than 50k (minus two that are auction properties). Livable decent property will run 120,000+ in Grand Rapids now and thats 10-11 years later. 

In a recession, how do you decide what markets you would want to take the plunge on? What are a couple key things you focus on when deciding?  

Most Realtors in my market I come across hate working with investors. This could be a reason they dont invest. Most dont care to take the time to learn that side of things. I think its foolish because we come across deals everyday. 

I bought a duplex FHA with 3.5% down when I got started. I live in half and the other half is rented out covering my mortgage taxes and insurance and then some! I have a great investor minded realtor in Georgia I can refer you to if you would like to talk to someone in more depth in person. Thanks.