All Forum Posts by: John Liebau

@Pat L. Thanks. Wasn’t sure about the flat roof I haven’t looked at many buildings like this. I’ll have to look up some diy info on them.

Looking at a deal that is an old brick commercial building converted to a triplex. Have not been in the property yet but I’m assuming it needs a full rehab. It’s about 3,000 square ft with a 2/1 and two 1/1 units. Built in 1890 stone foundation. Flat roof. Tall windows.

Obviously not much info to go on but wondering if anyone has experience rehabbing these kind of buildings and if there is any specific difficulties and expenses involved with them. Flat roof repairs - are they more expensive than traditional single family house style roofs? Hvac systems - one system for each unit? More expensive than more traditional building structures?

I have a vision of it being nice apartments with maybe some exposed brick in the units.

Thinking ARV is 110-120k

Asking price is 25k

Arbitrarily thinking a full rehab could be around 70k assuming the worst and me doing most of the non major repairs.

Would buy for 17000.

Units would at least rent for $700 2/1 and $500 1/1’s

Any thoughts on my thinking here? Have not yet done a rehab, currently house hacking a duplex.

Plan on having a contractor go with me to see it this week.

Will update with more info if I think about moving on it.

Thanks for any input.

I’m trying to get the other half of my house hack duplex rented. I have set my minimum requirements according to common information posted on BiggerPockets. A local business owner called me today inquiring about the property for her friend, she makes $100 less than my 3X the monthly rent requirement, she has some disability and I believe receives some kind of assistance. She has two dogs one of which is a service animal. She told me that she was lookin for somewhere to stay long term. Obviously the fact that she has disability does not in any way affect my decision to rent to her. I’m only concerned about the income requirement I have. Would you rent to someone just shy of your income requirement? Are there any big legal things here that I need to be aware of? As a new landlord it seems almost daily I come across something that I don’t know the answer to. Just looking for some input, thanks.

Thank you all for your responses. Loving getting my questions answered on here I'm really thankful. 

@Kris Mo, don't rush into it, you'll be able to find something that works. My realtor was an "investor" but guided me through a retail deal. Verify everything from the current owner - the income statements from the property for the last X years. If they can't - thats a bargaining position and if they don't accept the offer who cares and move on. Get an estoppel agreement from the tenants. I got the leases but didn't know he was charging $50 a month in pet rent so when I asked the tenant why they overpaid I just felt as though it didn't look good on me, and I regret doing it but I told them I would eat the $50.. man I should've just made up a pet addendum and added it but I'm learning how to be a landlord. Take your original offer and take off all the costs of any repairs you need to make. I replaced the water heater that was 27 years old the second month I moved in..... Last couple of things, shop for loans and insurance. my insurance surprised me and I felt as though I didn't have enough time to shop around for it during the deal. I would recommend getting quotes for insurance on the property prior to making an offer and including it in your numbers, don't just take the hypothetical number they say you would likely pay.

Now that is just advice I would say to myself for next time, just some things I thought about afterwards. That was my first deal and I don't know very much but if you ever have any questions or just want someone to talk about a deal with feel free to give me a message or something. 

I currently don’t plan on using an LLC for my rental properties, because I’m doing owner occupied properties and househacking my first couple with VA and FHA. Something I’ve been thinking about lately is having reserves for when things go wrong. Which led me to what if things really go wrong? I’m thinking about looking around for an umbrella policy. Would any one recommend this if I’m not buying properties through an LLC currently? Would you recommend getting in to having an LLC ASAP?

I inherited tenants whose lease goes month to month after their year is up. Things have been somewhat ok.. they pay rent, although usually late, but I don’t feel totally comfortable with them. I wanted to replace the inherited lease with my own, which I got from BP, but for now I have a little peace of mind knowing I can give a notice to not renew the lease. This is for my first house hack by the way.

Who cares flex the thinking muscles!

I was eager to get started and rushed into it not really knowing what I was doing. At the end of it I will still cash flow, but I’ll definitely do it differently next time. I got a duplex near Kansas City. Their rent pays for 70% of PITI. I used a VA loan financing 100% plus fees. I got it about 10,000 below list price, which I’m still kicking myself over. But overall it’s been a really great decision for me to get started in my opinion.

Thank you Mark Bosworth that’s how I understood their significance. Thanks for helping to clarify.