All Forum Posts by: Laura A.

Amiris - I live in the DMV (Virginia). I understand your plight. Properties are expensive. Investor competition is fierce. And margins are thin on rentals. Then there is a lure of riding the gentrification wave. 

There are rough neighborhoods and then there are war zones. There are other fish in the sea. This isn't worth it. 

If you are looking for a better price point, there are other neighborhoods and strategies that are less dangerous. 

But I love any post that starts with, "so, there's this house..." You know it's going to be a good story.

thanks everyone. Appreciate all the input and feedback. 

I live in the mid-atlantic region. Single family homes are my niche, but I am branching into small multifamily (2-, 3-, 4-plexes) properties. They are different from traditional residential rentals in many ways:

- age--I find most are over 100+ years old

- more incidence of units with only one bath

- very basic almost spartan finishes and amenities (often no laundry in each unit)

- the tenants tend to be low-income or very low-income

These differences have me turning over some questions:

Is it harder to find tenants with good credit to fill small multifamily units? 

Is it necessary to set lower credit and income-to-rent ratio standards in order to keep units rented?

Is the frequency of tenant default higher?

Are property maintenance costs typically higher? and CapEx? If so, how much or is there a rule of thumb?

Thanks in advance!

why would you ever show a seller your bank statement???? Aren't you showing your hand and inviting larger demands when they see you have far more $$ in your bank than what you are offering?  Do you black out acct #s? I like the idea of this but not sure how it could impact negotiations. Thx in advance for answering. 

I have a lead on a deal in Charlotte, NC, near downtown for an older small multifamily property that is half-vacant and not been undated in many years. The seller is motivated. It is in a transitioning neighborhood with brand new luxury housing construction right across the street. This is not a cash-flow play; the money is in a flip to a builder.

Anyone know of any experienced local Charlotte NC investors or agents who may be builder or know a builder who would like to partner on this?? If so, PM me.

Have a homeowner who wants to walk away from a problem property. This is a bit out of my wheelhouse but I said I would help get some info to help them understand their options and connect them with someone if I thought they could help.

Would love input from those of you who are more familiar with navigating these kinds of situations:

It's an empty townhouse in a "C" neighborhood. Needs a good cleaning. They outgrew it, were upside down so instead of selling they made it a rental and took a small loss every month so they could live somewhere that better met their needs. 

They want to unload this former home, but they don't think they can do a regular sale and get out clean. They want to avoid foreclosure/short-sale so their credit doesn't get hit.

They have two mortgages totaling roughly 260k, part of which is in 2nd trust (20k).

Their monthly P+I combined is $2015.

HOA and condo dues: $180.

This place rents for maybe $1600.

Taxes -- TBA (tax assessor site not working)

Is there an investor solution option for them?

Or is this best handled as a deed-in-lieu?

If you need more info to evaluate, what would you need to know?

I am in Virginia as well - Loudoun County - a little closer to DC than you. Welcome!

I could not reach an agreement with the owner so we didn't do the deal, unfortunately. 

Brian Burke and K. Marie Poe - Thank you for the great suggestion. Unfortunately, the house is not situated in a way that, with a lot split, it could be isolated on its own lot. :(

K. Marie Poe - Definitely a tear down. No doubt about it. I think the 60k offer is either a tall tale or an uneducated buyer. The lot is a "problem child" because of the topography, septic/sewer challenges, wetlands and flood zone, easement issues. Trying to factor all of that into this.

Steve K - From my buyer's perspective (that is, a builder), two new houses would sell for 230k each, 460k combined. I have no idea how to figure out how much it would cost a builder in Florida (materials and labor) to build two houses that sell for $230k each. There are a million variables. Any shortcuts to figuring this out?