All Forum Posts by: Gary Libero

Yes yes yes! Thanks @Sergey A. Petrov! All my fears in 5 bullet points! There are no tenants and will be no tenant inheritance. I would definitely have inspections done for piece of mind and not to find any deal breakers. Most everything in the house is new (plumbing, AC/heat, etc). The plumbing in the basement was quite a site, nothing I've ever seen before. Looked industrial. 

Thanks for your input. Appreciate it.

G

Thanks @Steve Vaughan! Given the area and the waaay inflated prices in this area (central CT), they're asking 300K for this property, which seems low given most everything around here is close to 400 or more (the sellers recently bought 4 or 5 properties all in a row on this street, not sure what the reasoning was behind it (obviously money), but they just sold 3 of them and this is one of the last two they have). 

I'm doing more market research and cash flow evals tonight just to do my due diligence. 

Appreciate the feedback!

G

Hello out there in BP Land!

I'm new to investing. I'm looking to purchase my second property and it's a doozy. I looked at it today. It's a FSBO. I've never done a deal like that before. What pitfalls should I be looking for?

Some further details:

- I'm going to view this property again tomorrow with my RE agent, just to get her advice (she is also a good friend and doesn't mind helping me out here). The property is good shape with updated plumbing, huge open kitchen space with two stoves, DW, fridge and completely separate ice maker (next to the second stove). Great light from bay windows. The only downfall is that it's right next to a school bus company (I'm not even sure that's a downfall, but it was a little odd staring out at a fleet of yellow buses out the kitchen window).

- The property has a main house with a one car garage and then a lower 2 car garage around the bend of the house, which also has a completely separate space that is currently being rented out as a small office to the school bus company next door. The office is being moved and that space will be part of the house. I will live in this house at first and then use it as a rental, which I'm foreseeing having THREE income streams (house rental, garage space for cars or bikes and the office space). If that's even possible to do, I don't know.

- The sellers have their own attorney they'll be using this for deal. All I would have to do is secure a mortgage, get inspections done and I think that might be it. Trying to CMA on all bases, so what am I missing?

I did find some older posts asking about similar situations, but they were older posts (some had decent info). Looking for some 2022 knowledge and any first hand experience buying a FSBO.

Be well out there!

G

I was just about to start a thread on this, but these posts answered most of my questions! Going to look at a 3-plex this afternoon and may do a deal with a friend who would be my private lender. Exciting times! Great input here....thanks!

Hello!

I'm currently house-hacking in two family home. I have a tenant on the 1 BR side and I'm doing some minor rehab-ing to the 3 BR side I'm living on before I move onto the next. There is a large "garage type" space (can't be used for cars as it's inaccessible due to septic system) that is well over 1000 sq. ft. There is a local artist interested in renting a new studio/ art storage space. I reached out to him to see what his specific needs are (i.e. if he needs a climate controlled space, this wouldn't be for him). 

Have you ever done something like this? Looking for tips on how the lease was structured. In his post, he said he's looking for a monthly rent between 800-1000, so that's a built-in win right there. The space is locked, semi-insulated, but it's a garage. Electricity, no heat or running water (though a utility sink may be able to be installed, not sure what plumbing looks like out there, which I'm about to go check out).

For the lease, what would I use as an address? Or primary address and add something in like "garage only" or "studio space only"? Do properties need have a certain type of zoning for something like this (that may be me overthinking, but trying to cover all bases)??

I will have to be clear that this can't be used as a retail space and he'd have to carry his own renter's insurance. I have no idea what type of art he wants to store, so that's wild card. If it's expensive stuff, this probably isn't a fit). 

Let me know what you think and if you've handled a situation like this.

Thanks BP!

G

Thank you both for your replies!

@Matt Pursley yes, private meaning friend. Both of your answers are helpful. I'm trying to structure a deal where everyone wins.

Be well!

G

Hello!

I've seen questions like this in some other BP posts (most from 2 or more years ago with little to zero replies) and am looking for some fresh insights. 

If I reach out to a private money lender, how do you go about negotiating terms? I understand this is fully subjective and based on the comfort level of both parties so I'm looking for a good starting point. With the markets the way they are currently, I'm not sure what numbers are good these days. 6% return? More, less?

Seeking first-hand knowledge on how you've done this and what has worked and not worked.

Be well out there!

G

Interesting question. I'm dealing with this myself in a current house hack situation. With me living in one side of the property, I'm essentially the Mr. Roper on the property (or Furley depending on how you lean...am I dating myself with this reference...of course I am!). I purchased the property last November and had ALL the tests and cleaning done (water, furnace, etc). I'm currently the one changing the water filter every 3-6 months, however, I don't plan on living here for too much longer before moving onto the next investment.

As a renter the past 4 years (and looking back now), my former landlord left everything in my hands. I replaced all the filters and maintained the whole property, including snow removal and lawn mowing/ weed whacking (with no rent discounts). In the 4 years I was there, no one came to clean out the septic or test the well water, which makes me wonder if he was just a poor landlord (he has over 200 residential properties...as a "side hustle"...he's more in the commercial real estate/ construction biz).

With that said, I don't want to be that type of landlord who lets major maintenance fall to the wayside. I'm going to look back at my lease contract with him and see what it says about general maintenance. Generally I would leave the major stuff in my court as the property owner/landlord and leave the general maintenance to the tenant (with check maybe quarterly check ins to see if things are actually getting done). 

My current tenant recently texted me that she has a fly issue in the house, which made me ask a similar question to this. Who is responsible for pests?? In this case, I can see where in her apartment the carpentry is not the best and flies are coming in, so I feel like that's something I need to fix. Oh the joys.

One of my favorite quotes lately....there is no "right time", there is only "time" and what you choose to do with it. I'm seeking my second investment property now while waiting on some financials to fall into place. The market is going to do what the market is going to do, regardless of projections and crystal ball guessing. Get in when you can with what you have and buckle in for the ride.

Wow, thanks for all of these comments! @Karl Denton thanks for the reco! I'm in Chester so Essex is close. 

@Scott Mac, it's a marble situation not a full on free solo to get out of bed. The house inspector said to "keep an eye on it" and not to worry as the foundation is good, but it's a 1800s home so settling is bound to happen. No offense to inspectors, but I take what they say loosely (haven't had the best experience with 3 different inspectors, but the one for this house was pretty damn good).