All Forum Posts by: Joey Wharton

For what it's worth Google Voice is great, easy to use and can let you screen calls. That should help in achieving your goal.

wow as an ex SoCal girl, I feel for you and the nightmare tenant laws in CA. 

I didn't get through the whole thread. Are they out?

Hi BP community!

So excited to be closing on Friday on first multiplex purchase. Deal details here:

http://www.biggerpockets.com/forums/88/topics/1675...

Purchased from an estate, they sold as 2 lots combined, just talked to city planning this morning and found out they are already subdivided. On quick look we can build 9 units, about 1200 sq ft,estimated rent $1100 each. 

So we can either sell the bonus lot for 60-70k and use that money towards another multiplex, or we can pull a commercial loan to build out, estimating about 350,000 to build, with me GCing.

What would you do?

Thanks guys for the feedback. Greatly appreciated. I will PM to start. I have been a landlord off/on for 15 years and have an excellent track record picking good tenants. We will gut and completely rehab units (industrial modern style), including new plumbing, so I expect maintenance will be minimal. 

Projected gross rents are:

3 / 1 - $900

2/ 1 + loft - $850

2 / 1 - $800

1/1 + loft - $700

1/1 - $650

1/1 efficiency - $575

Gross rent - $4475

Utilities paid by tenants

Taxes are low - $1023 and will drop to under $900 after sale

Insurance is right under $2000

Both tenants are undesirable and I will help relocate them day after closing. I'm very selective about my tenants and prefer to invest more $$ into the remodel and get quality tenants that are willing to pay premium for an awesome place. This strategy has worked well for me.

Plan is to pull construction loan out for new building once we are at 100% occupancy in the spring. 

These units will rent on the first day of showing. I know the area well and my SFR has always rented on the 1st day of showing. Complex is in high demand area with very little rental availability, walking distance to shops, 1 mile to hiking, interstate, huge dog park and downtown.

In this area, Craigslist is the goto source for rentals, even the PM companies use it heavily.

With this being our first partner deal and "professional" buy I'm afraid I am missing something that may be glaring right at me. So any tips are welcome.

Also, should we go right into building the second building, or should we flip some properties first?

Under contract for a 6 unit complex in high demand location where rents are rapidly increasing. Purchasing from an estate. Property on market almost 200 days, price dropped from 225k to 195k in December, got it under contract for 158k, with quick 2 week close. During our first round of negotiations it came to light that the property was uninsurable until roof got replaced. Estate couldn't find any insurance policy and they currently have 2 tenants, they had another lowball bidder, so we lowballed with 2 week close figuring they were ready to dump it and the strategy worked.

Downside, building has been neglected, units need complete rehab and we won't know full extent of repair until we tear into walls, which is a must in order to fix sagging in floors along center. Had engineer and foundation company inspect, both said foundation was good.

Estimate 60-70k in complete rehab costs

ARV 320-340k

Projected cap 13.5% 

Private lender at 6%, no fees

24% downpayment from personal funds

Final plumbing & electrical inspections tomorrow

I called city zoning, turns out we can build another building and add 10 more units. My agent sent me this listing. It never came up in my searches.

Plan is to get current tenants out ASAP. Rehab and have 100% rented in April, then get a commercial loan to build additional units.

Currently I have a SFR also good location, premium rent, 3 miles from this property. My business partner has a condo and storage units he's done well with, but this will be our first "professional" deal. We recently partnered for real estate investing, were under contract for a house flip but decided to walk away.

We've done a thorough inspection of the "bones", tomorrow is really focusing on mechanicals, electrical, plumbing. Is there anything else I'm missing?

Got insurance quotes (after roof replaced)

Got roofing quotes, costs built into rehab costs.

Any advice?

How does the deal sound?

Hello BP Members!

I have a similar scenario I'd love some guidance on:

2 Story , 3BR 1BA, 1100 sq ft

Colorado Springs, CO area

Comps coming in at about $160 - 175K

Rents at about $1300-1400 - however it will be my primary residence

House needs at least $50K of foundation repair - owner has estimates from over a year ago, further deterioration since

I estimate another $5K for collateral damage and fixing unsafe/non compliant electrical issues

Having a PE do a foundation, mold and home inspection this week

Listed for sale at $140K has been in MLS for 6 months

FHA short sale finally approved

Listing agent just informed me it should close in 30-60 days

I'm a cash buyer

Background - house is unofficially on the market. Seller refused to show. I got her on a good day through a neighbor and she walked me through and gave me the history. I submitted a bid for $120K. Listing agent said to lower to $110k as bank will counteroffer. Seller never signed the offer as she was on the fence about staying/going. Fast forward 2 months, tenant just moved out, foreclosure auction in about 6 weeks. We've had torrential rain deteriorating the foundation further, there are deep 5" sink holes in the soil, main wall in the basement has shifted from 1/2" when I first saw it, to about 3", siding is sagging in areas and door in bathroom will not shut by about 1/2" (it was find 2 months ago). Seller finally gave me access and all the paperwork. I'm the only bidder at the table. 

I will submit offer with detailed engineering & inspection reports, comps, contractor estimates, and further info from the engineer on how quickly it is deteriorating and why repairs need to be done now.

My plan is to offer $92,500, my max is $98K. IS THAT TOO HIGH?

Advice (besides run)?