All Forum Posts by: Jose Lopez

@Zach Quick I have budgeted  up to 10K to assist with TI for a tenant after I have reviewed their business plan and they sign a 3 year lease agreement. 

My experience is limited from the perspective of a commercial real estate owner. However I have been part of the leasing of commercial property as a business manager for other small businesses. I own one SFH as a rental currently. To be honest, from the beginning my goal has to been to invest in residential properties. It just so happened that as I was searching for deals i came across this opportunity. So I'm trying to do my due diligence and learned enough about commercial property to make a good decision.

@Zach Quick thanks so much for your time sir. This property is located on the most historic street in our town. There is a city sponsored economic development organization, “Main Street” that is focused on promoting business on this street. This particular location has primarily salons, restaurants, antique shops surrounding it all within walking distance. It’s 2 blocks from city hall and the police station. 

My strategy is to purchase it and lease it out to another business as retail/office space. The current owner has been leasing it for $1100 a month up until about 3 months ago when the previous tenant went out of business. That tenant had a arts and craft oriented business and they occupied the location for about 3 years. 

I’m purchasing this with owner financing with $10K down. The loan will be amortized over 30 years with a 10 year balloon at an interest rate of 3.9%. 

Please let me know if you need any additional information and thanks again to all that respond.

-Jose

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*This link comes directly from our calculators, based on information input by the member who posted.

@Joy Sandford,  @Courtney Fricke is the coordinator of our local REI group. She's got a well established network, and knows her stuff. I know her personally, so just wanted to reassure you that she would be a great resource for you in the Louisiana market.

Good luck!

Jaysen, 

Thanks so much for your input. I appreciate it more than you know.  

I'm going to self manage these, and mow the grass myself for the first few years at least.  I guess it would be a good idea to add the 10% management to the calculator to account for that as a future expense.  All 4 units have their own water meter.  So they tenant will be responsible for their own water/sewer/trash which is paid directly to our city public works department.  

The reason CapEx was so low is because I plan on replacing the roof during my rehab, and the AC units are all less than 10 years old. But I will take your advice and increase my capex to 15%.

I added the $7K to the refi as some cushion because I've never completed a refi and wasn't exactly sure how much I should expect to pay in fees.  I'm certainly open to feed back on that number though.  

Thank you again for taking time to reply to my post, and I'm excited to hear anything else you have to say. 

Thank you,

Jose

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*This link comes directly from our calculators, based on information input by the member who posted.

Some additional information:  2bed/2bath, 850sqft, 1960's construction, on an acre of land, with interstate access close by.  

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*This link comes directly from our calculators, based on information input by the member who posted.

Fred,

Thank you for getting back in touch with me.  This is a rare scenario where I have some indirect connection to the property.  The property is next door to my first cousin, he and his wife and friends and neighbors with the current occupants.  They enter the property on an almost weekly basis, and as recently as this past weekend. 

The home is move in ready and requires no major renovations or repairs.  It was built in 2015, it's a 3/2 around 1500sqft on 1 acre of land.

This will be a buy and hold.  My plans are to purchase the property at auction, place a renter in the home, and then cash out refinance after having title for 60-90 days. 

I hope this information helps, and thank you again for taking the time to reach out to me. 

-Jose

Does anyone know of a HML that will fund a deal on a cash only property at an Auction?

Thank you in advance,

Jose