All Forum Posts by: Joe Partington

Hey fellas,

Thanks to everyone who has responded to my post I greatly appreciate it!  The first picture above is the subdivision with all of the duplexes and four-plex just to give you guys an idea of what I'm talking about.  The second picture is one of the duplexes.  As you can see its in very good condition and well kept and I can assure you the interior is well kept.  The current owner cracks me up.  We've met on four different occasions so I've gotten to know him fairly well.  He is about 75 years young, a retired plumber, and he is a complete hardass.  He runs a very tight ship and doesn't take any ___ from any of his tenants which is a required trait as a landlord as many of you know.  He has done a great job in keeping these properties in good shape. A little update to the story.  The price is at 1.7M still (hoping I can get it reduced to 1.65M.)  I have come up with the financing I need (family loan in exchange for equity) and I have the approval of the bank to move forward.  Subject to an independent appraisal which will be completed in 30-45 days.  So, there is a very good possibility of this deal happening.  Where should I go from this point forward?  Any other thoughts or advice?  Would you guys take this risk if you were 28 years old?  Seems like a no-brainer to me barring something catastrophic happening the properties would be paid off in 20 years.  The rental demand in my hometown is in great demand and I know the rents for these units are low and can be raised. Thanks in advance guys.  I will surely keep you updated!!

Hey all,

I sent out direct mail to multi-family rental owners in my home town trying to find a few properties to buy.  An older gentleman called me back and wants to sell 12 duplexes for 1.7 M. He is 75 and is tired of being a landlord.  Each duplex has the same layout 2bed/1bath with attached garages.  Newly shingled roofs and all duplexes are located in their own sub-division.  Each unit rents for $750 and with a little work could easily be bumped up to $800-$850 imo.  Tenants pay all utilities.  The mortgage/tax/insurance is estimated at around 11k and the duplexes would bring 18k per month.  22/24 units are rented right now. A little info on  me.  I'm 28 and a residential contractor.  I own two duplexes, one in which I owner occupy. I manage 10 units on the side for a relative as well so I have a little experience and would do all repairs and property management myself.  I think this is a good opportunity.  I realize the time commitment 24 units would take and it would be a grind but construction and real estate are my two passions and I'm willing to do whatever it takes to make it work. I need to come up with the down payment which is 20%.  I would appreciate any advice or questions you have for me!  The picture up top is one of the 12 duplexes.

Thank you guys for the feedback.  He is not willing to do seller financing.  I did talk him down to $1.7 million though so thats a plus.  I am also seeing if my bank is willing to allow 15% down which would be huge.  I think there is a good chance of that happening only because I know the president of the bank very well and they are an aggresive bank.  Any other feedback fellas?

Hello,

I found a gentleman willing to sell his whole portfolio (10 duplexes and a four-plex.)  He wants 1.8 million for it.  All units are in good condition. We need to come up with a down payment of $360k.  The wife and I have $160k, so we need another $200k to be able to purchase the properties.  Each unit rents out for $750 per month.  So it brings in $18k per month.  Our bank estimates our mortgage at 20 years to be around $11,500.  I am  a contractor so I can do all the repairs myself.  I own two duplexes and manage 10 units for a friend on the side, so I have experience and wouldn't be jumping into this. This seems like a heck of an opportunity and I'd hate to see it slip by.  All the duplexes are in their own sub-division so thats huge.  What should I do to find the other 200k needed for the down payment.  What are my options?   Advice is welcome. Thanks in advance!!