All Forum Posts by: Jocilyn Oler

@Nicholas L. We just went under contract. The inspection was done today. The roof (two layers of shingles) and at least one of the A/C units will need to be replaced within 3-5 years. Both water heaters and furnaces were replaced in 2016-2017. With those big expenses needed so soon I definitely feel like the unit is overpriced. Any suggestions on what you would consider countering at? The current owner is basically flipping this duplex (he has owned it about two months) so I'm sure he got a good deal. 

We spoke with the one tenant and found out they just recently upped his rent from $600/month to $1050/month and they are advertising the other currently vacant unit at $1100/month. 

I'm not sure they will consider a lower price since it has not yet hit the MLS, but I'd like to try and I would like your overall opinion.

Much appreciated!

I have the chance to buy a 1986 duplex in Ogden, Utah that has not yet hit the MLS. I would love if someone would give me their opinion on this deal. I know it is overpriced, but it is appealing to me because I live 5 min up the road so maintenance would be super convenient.

Asking price $410K, under contract for $396K. Currently left side is rented with a tenant that has lived there for 5 years. Right side just became vacant. Rent have been $1150, but plan is to increase rent to $1100 with tenants paying all city utilities (~$70/unit/month). The current owner has been paying city utilities for both units (~$135/month for both). Annual property tax: $2000. Water heater and furnace are both less than 10 years old. Air conditioner is over 10 and for expense planning purposes we can expect to replace that within 5 years. 

Total square footage is 1,792 so each unit is 896 sq ft. Each unit has 2 bed, 1 bath, nice sized kitchen and living room. Double carports on each unit with longer driveway so 4 cars could fit on each side with small storage closet at back of carport. Shaded and grass yard. Forced air. The units are in decent shape, but nothing fancy. They could certainly use a remodel to look nicer, but as is they are functional and basic. Basic shed included in backyard.

Thanks in advance with your thoughts on this deal!

I have owned a mobile home for the last year.  It has provided awesome cash flow.  The park is changing the rules and I can no longer sublease.  So  I need to sell the home. 

I've found several interested parties who all need financing.  I am willing to provide the financing.  What are your opinions on doing a rent-to-own route versus selling the home using a deed of trust? 

We are leaning toward the deed of trust route right now.  We are selling the home for $35K.  Your thoughts on how much  the down payment needs to be?  Is requiring 7% interest way too low? Should I be expecting a higher interest rate? 

Two of the parties are fine taking seven years to fully pay off the home.  

Your thoughts and advice on this type of deal is appreciated!

@Jeremy Kloter Long term goal is to hold the home long term.  I've been keeping my eye for a property close to the schools to have a great place for my children to live while going to school down there in 20 years.  

@Christopher Phillips Yes they are only accepting cash offers.

I own two mobile homes and the cashflow is awesome! I agree that the land needs to be valuable to make this deal worthwhile so that later without the homes you could do something with it.  Paying ~$33,000 for older mobile homes seems high to me.  I bought mine for $13,500 and my doublewide for $15,992.

I received a counter offer on a property and I would like others' opinions on if you would go forward with the deal.  I guess the question is...do I go under contract today and fine tune my analysis of the deal in the next week? Is 5-8% return worth it?  The market is super high, which is why I hesitate, but the house is in an awesome location.  Your thoughts and advice is appreciated!

The house is a great location in a college town with two very close universities.

Here is an overview:

Total Purchase Price = $237K

Beautiful single family home located close to town college. Great for entertaining. Features open floor plan, granite countertops, sprinkler system, fully fenced side yard, abundant storage, and attached garage. Newly updated Master Suite including walk-in closet and exterior entrance. Tile, hardwood, laminate, and carpet flooring throughout home. Appliances include dishwasher, garbage disposal, refrigerator, stove, washer and dryer. Home includes new roof (2014) and neatly manicured landscaping.

Facts and Features

Year Built 1948

Sq footage: 1613 sqft

Heating: Forced air

Cooling: Other (4 window units come with home)

Lot: 6,098 sqft

Bedrooms

• Beds: 4

Heating and Cooling

• Heating: Forced air
• Heating: Gas
• Cooling: Other

Basement

• Partial basement
• 223 sqft basement (basically the trap door entrance and has water heater, furnace and some storage)

Appliances

• Appliances included: Dishwasher, Dryer, Freezer, Garbage disposal, Microwave, Range / Oven, Refrigerator, Trash compactor, Washer

Flooring

• Floor size: 1,613 sqft

Math outline:

Note: These Cash on Cash Returns (ROIs) are figured based off as if one person were to put in all the money. If we all put in money the risk is less and the returns close to the same.

They said that they lowered rents because they had sister's friends in there so their rent total = $1,580/month

Annual gross based off "low" rents = $12,696

Cash on Cash ROI = 8%

When considering higher rents (which seller assures me we could get) we could gross 1700-1800/month

Annual Gross = $20,400-21,600

Cash on Cash with these higher rents (with below operating expenses deducted each month) would be = 8.6%

Operating Expenses:

Tax: $84.83/month

Insurance: $55/month

5% vacancy: $50/month

5% repairs: $50/month

Capital Expense allowance: $183/month

Prop. Management allowance: $100/month

Total potential operating expenses= $522.83

Cash on Cash ROI c/ expenses considered (based off "lower rents") = 5.3% 

Average utilities (gas, electric, sewage, etc)

Summer: $330/month Other months: $200/month

Tenants pay this.

Internet is through Google Fiber and is free for this area.

I am looking at a property to move my family into for many years (if not permanently) because of the prized location and the desire to live in this area (the exact location actually).  

It is a 1993 4,100 sq ft home, 3 car garage, all brick, and sits on 1.72 acres with two large sheds.  The home is in amazing shape and has never had children in it.  It needs minor upgrading.  The owner's deceased husband was a perfectionist and did everything in a such a manner.  The home is nicely landscaped, but most of the acreage is a dirt field, which was used for gardening and fruit trees.  

I've checked with the city and no flag lots are allowed in this city so the potential to build another home on that land is out.  The seller wants $499K right now (down from an original $529K) and claims $40K of the asking price is due to the large sheds.  I thought you don't include replacement costs of sheds in an appraisal of a home/property??  The comps in the area for similar home and acreage is much lower: $450K and under on all comps.  We feel the home is very overpriced, but the seller completely rejected our original offer of $440K (at the time she was asking $529K).

We asked to pay for an independent appraisal on the home because we are willing to pay fair market value.  The seller said no.  She only will allow the appraisal once the home is under contract. 

My question is:  Appraisals come in higher based on the contracted price (even though this shouldn't happen) right? Any advice moving forward?  I really want this home and property.  Can I structure my offer a certain way to be contingent on an appraisal?  

Thanks!

Hello!  

I am new to BiggerPockets and new to real estate investing. I have done one deal and it went fantastic (>28% ROI) so I am looking to do another one. I found a duplex asking for $170,000. I countered $150,000. They replied with a multiple offer counter offer of $160,000. My question is what should I do? I do want this property because I've wanted to get my hands on a duplex, but the market in my state has been super high. This is definitely an older duplex, but in a good neighborhood. The cash on cash ROI for $160,000 is not great (6.7%), but also much better than what the bank gives me. Any advice for a newbie? **Also, this is purely an offer subject to inspection. I can't walk through the property until inspection time. Any advice would be great. Thanks!

Here are some details from the agent: 

Great investment property. Both 3 bedroom, 1 bath units are rented and on leases until October 2017. New water heaters in both units, new furnace in one unit. Roof replaced 5 years ago. New paint and carpet, updated cabinets in one unit, large parking area

Property Details