All Forum Posts by: James O'Connor

Pretty positive I'll be there! Whats the building look like where we're meeting?

@James Stokes you're my hero lol

I have way less on my plate and still need to push myself to get motivated!

Due on sale clause is something a lot of people are bringing up as the hurdle when transferring to LLC. It is written in most mortgage loans.

Really great info on this thread:

https://www.biggerpockets.com/forums/109/topics/71346-mortgage-called-due-upon-llc-transfer

This was written by Bill Gulley

"1. You signed the note personally, any transfer of the property will note keep a lender from going after you personally in the event of default or deficiency, regardless of who else or where the collateral sits...

2. Generally, if you transfer a property as part of an estate planning scheme and there are no other members in your LLC, banks usually will overlook the transfer.

3. Since the popularity of investors transferring properties to LLC and then selling the LLC or doing similar pops, lenders are cracking down. Use to be, I'd say do it (as I have in the past) but now I'd say proceed with great caution. If they see that you are in the business and especially if you have done similar deals in the past, I'm sure they will win out using the DOS clause.

4. Depends on the lender, your ability to deal with the lender and what is legally customary for your area, that will be true in all cases."

Hey David , 

Always nice to see more people in CT. Especially local to me. I'm on the market for a fourplex, give me that push =)

Take care

I'm in the same boat. The town I live in and most surrounding towns are small and rural with not much for multi unit rental properties. I've been looking in a rougher city close by, it's cheaper prices, lots of multi family properties, much higher crime rate tho.

Yeah the vision website is where i found the appraisal, most recent being 2013. showed $0 for all the purchase prices and no tax info. Very good tips Karin (I don't know how to @ you ha) I didn't even think to check the codes at the town hall. The land use code on the vision website showed it as a two family.

Thanks for the insight and rehab rule of thumb tip. One thing I realized is i used the word guess for things i was really guessing (repair costs) and used the same word for things I knew but was giving a range (rent prices for the area) so that might have lead to confusion. The mortgage calculator included tax and insurance per whatever zillow estimated. Rent is pretty accurate and lower then websites suggest and equal / tad lower then other houses in that area.

I'll have to look for the tax assessment website like you suggest.

Hi, I'm very new to this and just came across this home: was foreclosed and the bank took it back exactly a month ago, they just listed it.

Asking price $51,000     (2013 appraisal $93,400) 

 house was built 1930

5 bedrooms split into two units, I'm guessing a 3 bedroom unit and 2 bedroom unit.

looks like it needs floors in most rooms and a ceiling in one room. (possible water damage on that ceiling so makes me think roof repair or new roof is needed.

I don't know where to find out how much taxes will be?

rents I'd guess 750 for the two bedroom and 850 / 900 for 3 bedroom. it's a C / C+ area

so $1600 coming in - 50% rule means 800 to pay mortgage. mortgage calculators tell me it will be around $400 a month for the full $51,000. that leaves me with around $200 per unit cashflow.

now it obviously needs repairs Ive seen from pics but maybe more, I don't know how to guess that price so I'll just say $15,000 worth of repairs needed.

purchase price of $30,000 maybe $35,000 might make it worth it.

Any thoughts , guidance , help of any kind would be great. I have never bought a property before and have just been soaking up knowledge from bigger pockets.

And WOW didn't expect so much feedback and warm welcomes, this seems like a great online community so far. Thank you every one for the resources, ideas and taking the time to say hi !!

 As of now I do not know what location yet, that's actually the part I'm deciding now. I grew up in Guilford and moved to Lebanon area, currently living in Mansfield. So most likely any eastern CT would be fine. I like the suggestion someone mentioned about student rentals but it might be out of budget for me. I was originally thinking muliplex that needs $5k fixing up in a C or B location.