All Forum Posts by: Jamie H.

It didn't pan out. I ended up working with Stockmans who were great, but the seller ultimately wanted all cash and backed out because they didn't want the bank/appraisers in the building. More than likely I dodged a bullet. 

Hello,

I'm working on my first commercial real estate deal in Missoula, MT and am wondering who local folks on the forum are using for lenders, who's the easiest to work with (or who to stay away from), best terms, closes deals, etc. I'm primarily looking at banks at this point and am hoping to wrap rehab costs into the loan for an off-market deal.

I'm from Missoula but live out of state, will be moving back soon, but need to get this started long-distance.

Thanks,

Jamie

Hi there, I'm an aspiring investor looking for opinions on a potentially great opportunity that's right in front of me.

Several years ago I inherited a 50% stake in a SFH in a small town (population ~10,000) in SE Minnesota. The ownership is shared with a relative who is no longer interested in owning the house and I'm considering buying their half at a discount based on the repairs that are needed. The house is paid for and in good condition would be around 95-100k in value. From researching online, it looks like rents for a 3br house in the area are 800-850/month. Insurance is about 70/month, taxes are about 1200/year.

The risk factors:

- It's not in good condition. I'm comfortable taking on the window replacement and kitchen + bath remodels, but the foundation needs to be replaced. Three quotes came in between 10k - 20k. I have the funds to cover the repairs, but the magnitude of the foundation repair gives me pause. 

- Family drama - current tenant is a cousin who's stopped paying a steeply discounted rent and did not sign a lease when the co-owner (her dad) had her move in. I'm consulting with a lawyer, but it is still an interpersonal headache and makes timing tight. Foundation repair would need to begin well before winter (assuming I can schedule someone), so I'd need her out by 8/31 at the latest which she will not like at all. 

- I live in NYC, and while I have family in this town and have spent a lot of time there, I don't have first-hand knowledge of the market nor do I desire to spend much time in this town. I would rely on a local property manager. 

The upside is obviously $500 - $600 income per month free and clear, depending on PM costs. I have 75k - 100k free to invest in this property or a duplex or two in Missoula, MT, a town where I spend more free time and have more of a connection to.

Thoughts? Advice? Thank you in advance.