All Forum Posts by: James Wilcox

My wife and I had an extensive conversation about the possible results of acquiring this property. I do not think the cop meant any ill intent with his statement and is only looking at it from his perspective. We were aware of potential crime in the area, just not to the extent he was claiming. I respect his judgement on it because he is the "boots on the ground" law, but we are not going to be swayed because of as Rich Dad, Poor Dad would say "chicken little effect." Yet we do want to have a maintain good persona with all in our community. Who knows, that cop maybe a renter of mine one day. Likewise, if he thinks I have substandard properties he would tend to shy away. We however think the risk is worth the reward and will do our best to keep our tenants safe/happy. The property is not a home run, but is a solid pick up. I thought this topic would make for an interesting insight from others that maybe more experienced than I.

@Account Closed

I was just wondering if anyone on BP or have heard of any investor being called a "slum lord"? Would anyone else take offense to being called a "slum lord". It puts a bad taste in my mouth personally. Below is the story that sparked the conversation for this.

My wife was talking to a police officer at work and it came up in conversation that we do REI. She mentioned about a deal we were trying to work out (C class neighborhood or less). He asked where the area was. She told him and he immediately laughed and asked if we were "slum lords". She took a little offense to it and so did I when I heard it. I have never thought of myself in that light, but obviously others may see us in that way. However, yes the place is not in the best neighborhood. However, I hope to at least provide a nice, safe residence for my tenants at my property. I obviously can't speak on the other landlords in the areas though.

This is the first time I have heard anyone calling us by that term. IMO, I have only had good relations with my tenants. Many of them are very pleased with their stay at my places. Is there a way I can change this third party perspective on my business or have I just been naive in our REI.

@Will Bert would the Apt 3 maybe be under rent lock and an older individual? I am pretty sure their is a law or something that you can't raise the rent much on this kind of tenant in New York. Maybe someone from New York can chime in on that but I have no idea on New York laws or market for sure. Now if that person in APT 3 is older and happen to die or move soon allowing you to move that rent closer to market you might have something. (Just assuming that is the case since that rent is very different than the other two).

IK properties in New York are a lot of money but not sure the rents currently justify the price. However you would need to provide more information for someone to give a better opinion. Appraised value is irrelevant.

• Age: 1970
• Built with mostly brick with some wood on the back.
• Always been a four plex with R3 zoning (legit)
• Little if none new electric

Not really my market, but that triplex seems pretty pricey. Use the 2% rule with your mortgage rate and see what happens. Apt 3 seems pretty low compared to the others. Basement unit?

I am going to say No with the information given.

@Joe Fornasiero give us an update on what happens. Sounds decent with the information given. It would be impressive if you could get it for 55k. Not sure if they are going to want to come down that far but never know.

I have a 4 plex deal analysis for the BP community to take a look at in Kentucky. It is located in a C neighborhood. I have been waiting to get a four plex for awhile and finally have one lined up that I want to highly consider putting an offer in on. This 4 plex was a foreclosure bought by the owner in 2012 for 73k. He has put a lot of work into it and has covered some of the major cap expenses (roof, hot water heaters, furnaces, 1 AC, flooring, ect...). However, it has some major issues in the past. It is completely occupied atm. The only major issue I see is that he has had many major expenses last year due to a plumbing issue from the cast iron pipes that caused one unit to be down for a very long time and did cost a lot of money to fix. Likewise, the plumbing and issue of vacancy of around 38% for last year really hurts the numbers, but I hope the major issues are done with. I am not sure about how to best judge plumbing. My agent and I did different analysis for different amounts and what the "probable" expenses should be.

Think I should try to get it or is this just got more problems waiting for me? Maybe someone with more experience in 4-plexs can chime in. I can provide more information if needed. Never asked the BP community for help so not sure what information you might want.

The BP analysis (130K with my expenses put in) is my take and the excel is my agents take (he does a reverse off cap rate and the reported expenses by the owner).

@Dave Meadows It was off of Clays Mill Road near Shillito Park.

@Dustin Letourneau welcome and you have come to the right place! Definitely absorb all the information you can from the site, podcast, books, ect... and you will not be disappointed. 

@Joshua Deering welcome and good luck.