All Forum Posts by: Karl Denton

Ok, so with that you are taking over the mortgage and the deed is getting transferred to you. You take over her debt and take over her payments. However with her being 60k behind in payments, if I'm understanding that correctly. You take over the debt, id absolutely buy "Subject to" insurance to protect yourself from the Due on sale Clause(Also known as "Due on Sale insurance". If she's that far behind its hard to believe she's not in foreclosure. Youll need to catch up with payments in most cases if shes behind. Message me for more info! Check the video out start at (16:30) if you want a good insight, or watch the full podcast. Subject to - Bigger Pockets Podcast

Yes! There's also a great video on this from the bigger pockets podcast, including to why you should also get subject to insurance. But they may seem scary but aren't. What are some questions you have?

Cap rate can be hard but you would have to calculate based on what you think you can get for your operating income and also based on the property valuation. 

As far as utilities like water/sewer, I pay about 285$ a quarter annually for the Manchester area. I figure about 95-100$ monthly with I run numbers to have a bigger buffer room. This is also for a 3 family single occupancy. LoopNet is also helpful.

CAPEX and property management - I always will just use 10% for the buffer when running numbers. You can go more or less however I find this works good for many multifamily houses.

Nice break down! I’m also a multi-family investor in the Manchester area! Born and raised! 

So, here’s my question. What is the best way to make this deal work. I have a opportunity to purchase a 8 unit for 727,500. I’m hoping to put in a lower offer but going off asking and not having a lot of capital what’s the best move? I’m going the route of hard money lending with 10% to 15% down rather then a commercial loan of 25% down. I’m trying to raise capitol as I’m currently in a cash out refinance on another property that I own. 

Is this the best move? The refinance after hard money would pay back my hard money loan and the cash that I came up with for that would remain in the deal. If that makes sense…. Thoughts?   

I am to assume your running them on the BP Calculator, we may need some more info on this property. However you need to look at if you can at least get that 1%, remember you'll be building equity in this as long as your rents will be paying down the mortgage. Another good point to look at is are there any repairs or improvements that can be done to charge more of a premium for the rents? Lots of moving parts but look at the big picture, if it seems to risky for your first one then keep analyzing deals. 

Great stuff to really get together for tax season time! Thanks Charlie look forward to working with you this year!

I should be out of work at 530 from the Windham area, and ill head straight there Scott! looking forward to talking with you!

@Burke Fisher ya, so I would go around looking to get a personal loan, even if the rates are higher cause it will be worth it. But even try borrowing money, ask a close friend or relative to get in on the deal even. Good luck!

@Ricardo Ramirez ones called "Driving for Dollars" the other is "Deal Machine" 
If you lookup Driving for Dollars in the app store you'll see a bunch of different ones.