All Forum Posts by: Ian Bautista

@Isaac A.  Thanks for the response.  Your experience in renting in December is good to know.  We are still pushing ahead with our realtor and looking at properties and making offers. 

@Douglas Pollock Thanks for the feedback.  I definitely will not be doing month to month leases.  So are you saying sign a 6-8 month initial lease to have it end in the spring/summer?  Is that a standard practice and are tenants usually ok with that?

@Scott Weaner Good to hear and thanks for the encouragement.  Will keep on keeping on!

@Jacqueline Carrington I have definitely noticed that buying prices are getting better.  Also notice that the inventory going onto the market is going down as well.  My partner and I are sending out mailers to a bunch of properties to see if we can get some bites and maybe get lower prices.  

Hello BPeeps!

I currently live in southern California and am working with a realtor and lender in Florida to purchase a rental property out of state.  I've also partnered with my best friend who is a local.  This will be our first investment property and we've found some promising leads which we're excited to pursue.  However, I'm now wondering if it's getting too late in the year to pull the trigger on buying.  Let's just say we find a property within the next week and it takes us 30 days to close and 30 days to rehab.  That has us finding tenants in the November timeframe at the earliest.  All my research has told me that November-January are the hardest times to find tenants.  If that's the case, is it still smart to buy this late in the year?  Or is this just another one of my excuses to stay in my analysis/paralysis stage?

-Ian 

@Aaron K.  I agree with you on the red flags.  A friend of a friend of a friend has put me in touch with a local realtor there that she promises will be low key :)  We'll see what price they come up with using comps.  

@Account Closed I would have said the same thing, however, he is selling to one of his good friends as well (my best friend and I are going into this deal 50/50).  There is a listing for 4 duplexes with same type of 2/1 units (8 units total) asking $520K less than a mile away.  If you were doing a per unit price comparison, it would price the quad at around $260K.  But there are no pictures to judge the inside condition and its been sitting on the market for 2.5 months.

@Aaron K. So the $593K was for 3 quads in total.  Therefore, each quad was sold for almost $200K each.  That was last July.  However, I don't know what the conditions of those units were.

Good morning BPers!

I currently live in the Los Angeles area and am looking to invest in multi-family properties out of state due to the high prices in LA. My best friend lives in Florida and we've decided to partner up and buy some properties out there. He mentioned our plan to one of his really good friends who happens to be a real estate investor himself (I've met him many times and seems like a stand-up guy) and his friend offered up a fourplex in his portfolio that he's looking to sell, but hasn't listed yet. He's says it's worth about $285K and rent is $2900/mo. Running the numbers gives us just over $500 in cash flow each month and a 10% CoC ROI.

Numbers look ok, but not great due to the price.  The problem I'm running into is coming up with a reasonable offer for the quad.  After looking at the tax assessor's website, I see that the owner bought the property in 2014 for $110K (although he did say he totally upgraded the place after buying it).  Also an investment company bought three quads in the same complex for $593K in July 2017.  

I'm wondering if the owner is basing the price on the current rent, because I can't really see any comps that justify a $285K price.  I'm hesitant to talk with a local realtor, because I don't want them contacting the owner and trying to get involved in this off-market deal.  Also, I need to be a little delicate in how I approach a lower price since my best friend and him are pretty close.  Any advice on how to come up with a good purchasing price and not blow up the deal?  Thanks in advance for the help!

-Ian

Very interested in meeting other investors in the South Bay!