All Forum Posts by: Jeremy Swanson

@Mary Mitchell Alamogordo NM. I would say it's in a C property in a C- neighborhood. Not quite the slums but pretty close. Monthly rent on the property is about $550.

@Mary Mitchell You're totally right. Guess I should have thought of that. Lol I reviewed current AirBnB listings in my area and here's what I found. Mid-grade properties are going for very cheap out here and I did not find a single low-grade listing... It is wishful thinking to try and AirBnB a low-grade property?

@Sam Grooms I have enough furniture to cover ~75% of it. Only thing I would need to find is a cheap used mattress.

Hey BP community!

After a few delays and some headache, I will be closing on my first deal today. Very very excited. It's a 4-plex in a slightly subpar area right outside a military base in Alamogordo NM. Rents are all on the low end ranging from $500-$575.

During negotiations I learned that I could legally ask the buyer here in NM to cover my personal lease termination fee of $2200. This allowed me to move directly out of the rental I was in and into my 1st house-hack once I closed and there was a vacancy. Financing with a VA loan so I will need to move into the property ASAP. Unfortunately closing costs were way underestimated and the $2200 that I asked for will need to go towards other things. I should have designated in writing that the $2200 needed be a credit or stated that it was only to be used for my lease termination fee. Lesson learned.

A week before my closing date, my realtor tells me that one of my tenants will be moving out in a month. Bad new obviously, but it got me thinking. 

Once the tenant moves out, I will have 2 months of vacancy in that unit before my personal lease is up and can move into it myself. Do I have enough time to set up that unit for AirBnB and make enough money to make up for the 2 months of vacancy that I will have? How have yall done with lower end AirBNB properties?

As always, I appreciate your input BP!

@Anthony Gayden very strange visual but awesome analogy! lol

@Brian Ellis No, I meant getting a quote from the GC using only the inspection report and not an in person visit.

Originally posted by @Brian Ellis:

I love the negotiating process. I believe this is where the magic happens and where good deals are made. You are on the right track, have the GC write up a very detailed estimate for the repairs needed. Pay him for his time, and provide that to the seller. You should be doing your own research (along with your realtor if you have one) on comps. Basically, as I look at it, I want to subtract the repair costs from the market value, and then get the house even cheaper than that so I can get my money back and some.

Dude, I freaken LOVE the negotiating process as well. It's ridiculously satisfying. I think I may be becoming addicted to it.

So today I am in the process of getting a GC. I don't know why but for some reason I thought I would be able to get a quote straight from the inspection report instead of having to have the guy come out in person. wishful thinking I suppose. Thanks for your advice brother.

Originally posted by @Mike Cumbie:

Hi @Jeremy Swanson,

My advice is to not bring up anything that any competent person would have seen at walk through. For instance if a door is off a hinge, the roof is old or a broken stair. These are things that most people selling figure you have already built into your price. Now things that a "layperson" would not know... The exhaust for the hot water heater is 3 inch instead of 4 inch pipe, the electrical panel is a model that has a recall on it, There is slight seepage at the galvanized water main coming into the basement etc. Those items in my experience have owners who will at least stop and be a little more objective to the requests.

That is a great point. Unfortunate for me, this is my first deal and only second home that I have bought so I am still learning how to catch things during the walk through. Thanks Mike I really appreciate your advice.

Hey BP community!

First let me say that you guys/gals have been a humongous resource in helping me through my RE journey. I appreciate the feedback I have received on the few posts I have made concerning this specific deal.

On to the topic at hand. After fully reviewing all the home inspections I ordered I have decided to consult with a GC about my next move. I'm under contract on my first deal. It is a 4-plex. Excluding cosmetic issues, there are definitely a few somewhat costly things that will need to be fixed most of which are safety issues but some other things too like small leaks, exposed wiring, broken windows etc. Taking into account that I live in a buyer's market, I wouldn't think the seller would want the hassle of starting this process over again with another buyer. Plus I know for a fact that he's tired of the headache of property management which tells me he's motivated. On the other hand, he is an experienced RE investor so I know this isn't his first rodeo.  

All things considered, I think I can get away with asking for something fairly decent in the post inspection negotiations. I would like to get aggressive and am considering asking for a credit based on what info I get back from the GC.  I know it's asking a LOT but is there anyway someone could walk me through how to analyze the reports and come up with what I should ask for? I can DM you the reports upon request.

Thanks!

Hey BP community! I just got my first deal's offer accepted and I'm pretty excited. 4-plex house hack. Can't wait to move in and start this journey. That being said, I'm already thinking of the next deal. So a little back story, I live in a small town in southern New Mexico with a population of about 31,000. There's not a ton of properties down here to choose from so I've been giving some thought into distance investing. That's where my brother comes in. He lives in Denver, CO and shares my passion for RE. We have been discussing partnering on a deal but don't quite know how we would divvy up the responsibilities. Any thoughts would be greatly appreciated. Thanks!