All Forum Posts by: James Fisher

In my market, a college town, there are quite a few old Victorians that were converted to multi-family. 

Has anyone here had any experience purchasing and reconfiguring a home like this using the BRRRR method?

For instance, I know of one that is in foreclosure and will likely be auctioned off within the next few months.  It is zoned multi-family, but is in very poor condition and has not been lived in for several years.  Assuming the property doesn't have compliance issues with the city for some reason and maintains its multi-family compliance, I've considered purchasing it.

I think it is possible to reconfigure it from having 3 units with 6 total bedrooms to 3 units with 9 bedrooms, as bedroom count is king in my location. I'm just wondering if there is something I'm missing or not thinking of with my plan of bringing units on one at a time. Likely the top floor first, then middle, then lower level.  I'm starting at the top so as to disturb the tenants as little as possible when I work.

I feel like I should know this already, but am drawing a blank.

As an example:

John is 35 and has worked for 20 years.  He has enough 'good' years to draw social security when he hits 65 (or whatever).   Also, John has rentals that generates $75,000 (net) per year.  He decides it is time to quit his day job, and live off of his rental income.

Since social security at age 65 (just an example) is based off of his 30 best years, once John quits his day job do years 21 to 30 count as 0?  Or does the income generated from his rental income get applied?

I don't really understand the question.

This seems more information that you need to research or that a real estate agent can help you with.  A real estate attorney can surely do this for you....but not for free.  Is it worth $300 an hour for an attorney to read the same documents you can read?

When it comes to tax liens, my experience has been a firm of some sort will bid on ALL the liens, and outbid all other bidders.  They are not bidding in order to win the property, but to get a guaranteed return on their bid (investment).  All (most?) states allow a redemption period after the tax lien is 'won'.  The property owner pays the lien amount plus a little interest.  The firms are after that interest - not the property.

On the other side of the equation, there are property owners that utilizes the tax lien rules to their advantage.  They don't pay the property tax immediately,  and instead deploy those funds in some other way.  Paying off a high interest loan/mortgage, a new property, etc.  When they redeem the property with the lien, they pay the lien amount and the interest (mentioned above), which in effect works out to be a super low interest loan.

Is there a property inspection report?  Seller's disclosure?

Did you hire an engineer that recommended some additional work that was not performed?  I suppose it would be a stretch, but did you have a contractor make a recommendation that wasn't followed through on?

If the report and disclosure is accurate and you aren't hiding something from an engineer/contractor - tell them to pound sand.  

A vacant home (for an unspecified amount of time) in a smaller community in WV (most likely a dying community) that one cannot access due to the entrance road/bridge being blocked by a creek (suing a neighbor an easement!!)....selling for 15k.

Do you have $100k immediately accessible for rehab and can you do ALL the work yourself?  That may get you started.  

If you are doing the rehabbing, replacing joists is no big deal.  The expense is in the labor - though I have no idea the scope of the damage or the best approach from your description.   IE - removing the flooring/sub-flooring, joist dimensions and span, # of joists to replace, mold, etc.

The elephant in the room is - where is the water coming from?  To mitigate that may be a few hundred bucks or $10,000+.  

I have two 100+ year old properties.  Unequivocally, if you are paying a contractor to do the rehab work on these old neglected homes YOU WILL LOOSE YOUR ***.  Even if you get the property for free.  

Thank you all for the insight!

Here is the scenario.

The Good:  Great neighborhood, excellent location, 3 bed/2 baths, nice lot, garage, excellent price.

The Bad: Arson.  The former owner tried to burn it down.

The Ugly: The former owner murdered his wife and then committed suicide as the house was on fire.

I don't believe in any superstitious nonsense, but I'm sure renters do.  I'm looking for a new DIY project and the situation above has presented itself.    

Will this rent or will it require a deep discount to fill?

 Hello Guy,

Just curious in what ways you've not been successful with the 12 unit building?