All Forum Posts by: James H.

Great Turnkey opportunity for investors looking for amazing cash flow. Duplex fully remodeled April 2017. Both units rented with great tenants, 6 mos left on leases. One side section 8. No miss or late payments. Investor moving on to other opportunities. Contact me for more information and pics link. Cash close in 15days.

Please let me know if you find any wholesale deals near Albany Ga like the one you had here.

thanks

Thank you @John Mocker and @Dennis Weber! Gotta love the BP community.

Can someone explain who's responsible for the taxes and home owners insurance on an owner finance deal? How are all parties protected? FYI what if there's a mortgage still on the home that's being wrapped?

thanks!!!

@Ben Wilkins thanks for taking a look at this for me! Your feed back is quite helpful and very much appreciated. The $50k is an estimate on catching up on deferred maintenance. I estimated $2000 per unit and the rest going towards the exterior. The plan is to upgrade the units as tenants move out with new flooring, paint and appliances. The roof has wear and nearing the end of life and may need to be replaced soon. The exterior has been neglected and needs paint, new fencing, court yard landscaping and trees cut down. I am hoping with these improvements during the first 24 months I can began to get better tenants and bring rents from $300 to market $375-$425. I was going to do this overtime putting funds back into the property hence the 24mos timeline and lower maintenance and capex. Do you think there's a better way to make the improvements? 

I believe the electric is individually metered but the water/sewage/garbage is one fee. I need to confirm this. I was going to have the tenant assume the utilities to the tune of $50/mos but I am a bit hesitant on this. 

Very interested to here your thoughts on this plan?

Hello BP fam, the question is what am I missing? I have purchased a few SFHs and duplex in the past 6mos so I have some experience but not a lot. I believe in being resourceful and taking action! I can really use your help on my first commercial apartment deal. It was presented to me by a broker whom I built a relationship with over the past few months looking at some of his other property listings. It's an off market deal that I have under contract after some serious negotiating.... Here are the numbers. 

14 efficiency units

Owner Finance Purchase $230,000

Down Payment 10%

Interest 5%

Ballon 3 years

30 year Amortization

Current NOI is $24000/year with 2 vacant units and 1 tenant not paying

Cap rate trading at 8% (Not sure how reliable this is.) 

Average rents are $300, but this is below market of $375-$425 

Landlord is paying utilities but it seems they are trying to transition into tenants paying by the looks of the cash flow statement. All the utility numbers do not add up.

If you are interested in being a good BP Sport I can send you the cash-flow statement and rent roll. Would loved to get your feed back. 

https://www.biggerpockets.com/calculators/shared/5...

Thanks in advance!

@Brian Pulaski, @Doug W. @MJC thanks for the feedback. If I move forward with flipping it I plan to repair it just above average to get it to sell more quickly. I like Doug W's justification above in regards to savings on the holding cost. My basic strategy is to buy and hold so I am also now contemplating renting or listing as a 2 year lease purchase. Any of you have experience with this?  It's a good neighborhood for home ownership. If I go that route I will likely repair it moderately. Thank you all again for your input. Any other suggestion are greatly appreciated. 

Ken Min thanks for the feedback! Both points are excellent. I have a good idea of what buyers are willing to pay based on recently sold comps. I plan to make mine a little above average to sell it more quickly. Per your advise I also have planned to see a few 'for sale' homes. I've seen quite a few online already but need to see them up close. 

Being a buy and hold investor I'm very interested in tenant lease purchase programs and plan to research the pros and cons more fully. So any info on this you can provide would be great! Take care Ken! 

And thanks again.

I am interested in your services Chris. Lets chat.

@Chris Mason