All Forum Posts by: Jake Arnold

@Joshua D. Two years later this post helped me. Thanks for asking! 

@Eric Gomez DM me. I’ve taken a ton of them out.

@Cory Lucas do you include garbage pickup in rent? I always include garbage pickup to avoid that very issue.

@canesha edwards thanks for your input!

So. I'm currently under agreement on an off market 5 unit. This is my second "going to close" deal.

    I've made offers on several properties and have been looking down all avenues for a deal. I finally found one. I walked the property after meeting the seller and was excited to see 3 turnkey, very nice units and 2 that needed work. 1 just needs to be rezoned and the other needs to be rehabbed (this was a 5 but lost its zoning).

    We agreed on a good price, especially with the potential of this property. I waved all contingencies besides the mortgage contingency. No earnest money. I did my own home inspection because I have been around building construction most of my life and currently do electrical work. 

    During due diligence I found that in order to make it a 5 unit again, I'd have to file multiple use variances and install automatic fire suppression ( sprinkler systems). This now becomes a much more costly and time consuming endeavor that likely is not worth the cost or time.

However, it still is profitable and offers a 14% CoC return semi conservatively. AS IS. Still, I do not feel as good about this deal and as we proceed I consider renegotiating or backing out. I'm also afraid that because of this market and the rate of inflation and rise of home prices I will miss this deal and it turned out being better than I thought.

I am under contract to but this within the next few weeks.

Anybody have any advice?

@Emily Jo Kester

I’m from that area. What kind of property are you looking to purchase?

Thanks @Zachary Coombs

Hello BiggerPockets Community.

-- I need advice. Here we go.--

---QUESTION--
How do I secure financing on 350k loan? What techniques could I offer to solve this problem?
I have 25k cash. DTI of around 20%. Under 20% equity in a duplex.
The seller recently refinanced, unsure of her equity stake. (She inherited the property).

THE DEAL.
Off market.. 6unit apartment building, 3bdr house, 1unit garage commercial building (small). All properties are in the same location, (NE Pennsylvania) basically side by side on the same street. The apartment building got appraised for 350k two years ago. New roof, properties in decent condition overall. Half the units are vacant. I could definitely fill it fast...
I HAVENT WALKED IT YET, I WALK IT ON SUNDAY. That's why I need this advice.

SOME DETAILS ON THE SELLER.
seller inherited the property.
She is having hard times with tenants.
She's very motivated to sell.
She went to a realtor and was discouraged by a 16% commission.
The seller recently refinanced, unsure of her equity stake. As I said before.

SOME DETAILS ON ME THE BUYER.
As I said before,
I have 25k cash.
DTI of around 20%.
Under 20% equity in a duplex.
no other real assets.
I'm also 23, that shouldn't matter but that is a factor in negotiation.

CURRENT PLAN.
I've tried to avoid talking to much over the phone about the selling price and my situation. She was worried about title transfers and how the process works so I didn't want to confuse her over the phone. After walking the property, I plan on building rapport and discussing these things; how we could make the purchase happen. Unfortunately, I’ve never done this before and I’m not 100% sure how to make it work. I was going to analyze the property and then talk to banks.

I think that’s enough data for you to get the point.

This is a real life situation, 3 days away. I want to solve this persons problem and grow my portfolio.

If you have any ideas, please help me out. Thank You!!!!
Everyone on here is the best so I can’t wait to read feedback.

@Matt M. Yeah I think when you have really good tenants it pays dividends to reward them. A gift is something small but means a lot. It could make the difference of a COVID vacancy or not, in my opinion.

Hello BP community!
I have a Duplex in a college town that's classified as commercial student housing. Currently its rented as residential because of the times.
It has hardwood floors that have been painted. They creak and are kind of ugly.
I've been thinking about the pros and cons of carpeting these units. Before I buy another property. I'm leaning towards no because of the frequent wear and tear.

What are your experiences and opinions on carpeting vs hardwood floors for older houses with new tenants every year or even semester?