All Forum Posts by: Joe Livsey

I am writing an offer for a fix and flip where I plan to use a hard money lender for 80%LTV and 100% rehab. Should I write it as a cash offer or should I indicate a loan?

This flip is in Buffalo, NY.

@Scott Royer

I will PM you. I can take a look at these lots to see if theres an opportunity for us to JV or make some sort of deal.

@Danielle Campo

There is an active FB group “Westchester Real Estate Investors” run by @Rachelle Rayner that would be good for you to join. There are local, live events and virtual meetups with investors, lenders, attorneys, CPAs, etc.

@Matthew Irish-Jones

Thanks Matt! I have been putting together a package for the challenge including the comps that I feel are more appropriate. The contractor I used on the Reno was actually one of your recommendations so thank you for that as well.

@Jonathan McGee

Sounds like your situation in Memphis was a little more involved than one bad appraisal. Really shows the power of having the right team in place! My lender is helping with the appeal and has worked with me through a few properties now. Thanks for your advice!

@Manuel Koschnieder

Thanks for the suggestion. Bought it for 60k and put another 60k into it including holding costs.

Hi All - I just finished a rehab in the Buffalo, NY Market and received an appraisal back this morning for $145,000. Bought it with cash and used a personal loan to rehab so there is no debt on the property today.

My estimates projected a 165-170k ARV based on comps in the area that have sold in the last 0-12 months.

Question I have for the forums is what’s the best way to “challenge” the appraisal. Has anyone had success in getting an appraisal improved?

Any thoughts would be appreciated!

@Bobby Lee & @Michael Plaks

Thank you both for your replies it sounds like my thinking is not too far off. I am not a stretch the law kind of person so I would ensure that my deductions are all legitimately used for the tenants either in full or calculate the appropriate amount. 

I may not have painted a full picture of the "home office" in my side of the duplex. Its a 3 bedroom apartment so I will definitely be converting the smallest bedroom into an actual home office where I will work for my day job as well as well as grow my real estate portfolio/operation. I would not want to call my entire apartment a home office. Hope that clarifies my statement earlier! 

I am about to close on my first house hack investment, a duplex, using an FHA loan. There will be renters in one half and I'll live in the other. Having been a renter my whole adult life I own minimal tools and zero lawn care or snow removal equipment.

Since I will be a landlord and these products will be taking care of my investment property and tenants am I able to purchase and write off things like a lawn mower, weed wacker, basic handyman tool kits? These would be items necessary for the normal operation of my business. Could I take it a step further and have my half of the duplex, my primary residence, be considered my office where I conduct my business and things like paint or a home office set up be deducted?

I understand I should direct these to a qualified CPA to help with my tax planning and preparation. I am in the process of finding and vetting options at the moment, but while I'm doing this I would love to hear what others have done!

I have an accepted offer on a two family home in Westchester County in NY to purchase using FHA financing. It's a duplex with one unit vacant (into which I'll be moving) and the other unit has been occupied for 8 years by one tenant, a quiet couple in their 50s. They have never missed a payment, pay on time, keep to themselves and don't use the enclosed yard with the property. All sounds good BUT....

They clearly have not cleaned a thing in the last 8 years in the apartment, the place is disgusting (no foul smells but general filth), they have collected likely a full 8 years worth of magazines which are stacked throughout the kitchen, living room and bathroom along with miscellaneous newspapers, artifacts and other items. The previous landlord was a long distance investor and definitely not aware of the degrading visual appeal of the apartment because of the pros listed above. 

Question here is does any have experience getting FHA financing approved with a multi unit property where one unit is maintained poorly by tenants and could be flagged during the FHA appraisal process? Is there anything that can be done prior to the appraisal by the tenants/current owner or the buyer.

Any thoughts or comments would be appreciated!