All Forum Posts by: Joan Sambo

If you haven't seen the place, how do you know it needs $40k in reno?

Too many red flags on this deal.. I would walk away or have him agree to my terms, deliver it vacant, 10 day due diligence with access to the property... or he can just keep it or sell it to someone else..

I don't understand how you are even considering this deal... You are putting 140k down, plus 10k of closing cost, plus some cosmetic rehab, say $3.5k per unit, plus the damage to the structure of the house and expect to make a profit of $600 per month??? So you are all in for roughly $160k (potentially more due to the structure issues) and making $7200 annually (if your cashflow math includes all the expenses)... This comes to about a mere 4% CoC return....

I wouldn't run from this deal... I'd take a plane and flight as far as possible!

I calculate the numbers on a house hack the same way I would do a rental. You want the property to cashflow positively once you leave so you do the numbers as if you were not there and then you simply substract the rent of the unit that you will be occupying and that difference is how much you are paying in this new situation. My two requirements for me to jump on a house hack is: 

1- Will it cashflow once I move out of the property (accounting for all expenses of course)?

2- Will my living expenses go down by me purchasing this property and moving into it (say for example renting or a mortgage for $1000 vs $300 to make up for the difference on the new property mortgage, $700 in savings)?

If those two = yes, then I purchase the property. 

I use TenantCloud. There are a lot of other options available like Rentredi, Avail Zillow. Make sure to do your research before signing up for one of them as they all have different features. TenantCloud allows your tenants to send you ACH payments every month for rent and you link your bank account and it goes straight to your account. 

I use TenantCloud, user friendly and tenants love it!

You could use software specifically for managing rentals. Most of them also have pre-screening services connected to them. Some of the ones I've looked into are Stessa, Tenantcloud, Apartments.com, Avail. I'm sure there are more out there. Some of them even have free membership for basic features.

@Brian J Allen Thanks a lot for the info on the roof. The roof in this property is my main concern with it being slate and I noticed it had a couple of loose tiles. I've been a long time follower of your posts here in BiggerPockets and appreciate all the knowledge and information you have shared about investing in Worcester. I'd love to connect with you to see your thoughts on this deal. Let me know if I can DM you.

Thanks

Hi all!

I just got my offer accepted on a triplex in Worcester that has slate roof and was wondering if you have any recommendations for an inspector with experience in slate roofs and multifamily?

Thanks!

@Kenton LeVay I asked the two loan officers I've been in contact with if I could move out of my house and rent it out with a signed lease would make me qualify. I'm waiting for their response. It seems like they are concern due to people lying about their plans in terms of primary residence. They said a lot of people say they are going to live in one of the units but never move into the property (which is essentially home occupancy fraud). My last resort would be to sell my house and get into a triplex with an FHA loan and then downsize to a duplex, and then SFH. It's tough to come up with say 25% down for your first investment property in this area because duplexes and triplex go for 300k+ around here.

@Sadierose Saucier Exciting investing journey you are having. I am going to look into a couple of local credit unions in my area to see what they can offer. So far I've checked with one and they don't offer an FHA Loan and for conventional you need 25% down for a triplex whether it is primary residence or not (unless you go Home Possible but I don't qualify because they have income limits). I'll report back here what I find. Thanks for replying!