All Forum Posts by: Jesse Mitchell

@Raheem Mentor the link below will become your new best friend. I spend more time on here than I'd like to admit. Little tip to finding proper owners... a lot of owners own the property in an LLC but then use their primary address for having the tax bill mailed to. So when you find a property owned by an LLC take the mailing address and search that in the GIS, wallah you have the property owner. Happy hunting!

https://gis.peoriacounty.org/PeoriaGIS/

@Ray Harrell and @Thomas S. I appreciate the insights. I absolutely agree with what you are saying...  part of the business. One thing I would be curious about and is probably a question for an attorney, but if one passes would their estate take their place on the lease in terms of reaponsibility for the rent? I’m just trying to make sure there isn’t something obviously I am aware of as far as death and tenancy are concerned.  

Hey Everyone,  I find myself in a unique situation and am hoping there are a few of you out there with experience/advice for my situation.  I am pending on a duplex that already has existing tenants in the lower level, they have been there 3 years, always paid rent, and after meeting them really seemed to be nice people that enjoy living there.  Where my long term concern arises is they are all 3 older and have various health problems they deal with..... so riddle me this.  What happens if one of them passes away and the other 2 cannot afford the rent?  I can't imagine having to be the landlord that evicts a poor, senior citizen, in poor health....   In a perfect world, they all live happily ever after another 20 years but my concern is what if they don't.  Has anyone else been in this situation before and if so, how would/did you handle it?  

Thanks for the replies  @Vincent V.@Charlie MacPherson

@Steve DellaPelle

I appreciate the vote of confidence. I am new enough at this that I still have a hard time disconnecting from value being based off of what the sellers got it for (in this case 74K) plus their improvements equaling a fair market price.

I need to remember that just because they got a great deal doesn't mean I am not getting a good deal still.

Hi BiggerPockets world, title says it all.... would you over pay if the numbers still worked?

I find myself in a unique situation where I know the property is 7-10% overpriced but it still cash flows well. It is right next to a college campus and right next door to a duplex I own as well.  It is currently used as a Airbnb where it averages between $1000-1500 a month and this summer will be leased by students at $1200 a month including utilities.

In principle we have negotiated a price of 99k fully furnished with a $1500 cash credit to me at closing.

ROI would be 13-15% based on conservative estimates.

Thanks in advance!

Hi Mara, I would recommend Jim Huff for your inspection. He is a little old school but is a wealth of information, I really enjoyed going through my duplex with him. I saw you mentioned in the Bradley area, where did you end up finding a property? I happen to live next door to Bradley myself..

Hi @Jesse Fernandez glad to hear of your interest in Peoria. Peoria is a city with its share of problems but my wife and I love it here and see the future as very promising. And yes, Caterpillar has decided to move its HQ and its 300 top execs to Chicago land area... but will leave behind a strong downtown presence and remain very active in the local economy here.  The bread and butter of Peoria is their exploding warehouse district with many rehabbed buildings and new businesses coming in.  Picture Peoria as a city that "gets it" now but didn't for a long time, that puts us farther behind more progressive cities in terms of green infrastructure and bike lanes etc. but moving in the right direction, and all that circles back around to your question on crime. Yes, Peoria has its share of crime but it is located in certain pockets of the city as to be expected. I think as development continues and your tax base increases you are able to reinvest in more community development and police officers, I think at that point it snowballs and continues to improve.  Best of luck! Feel free to dm me if you have any questions about specific areas. 

Cheers

Jesse