All Forum Posts by: Josh Corriveau

Thank you @Eliott Elias

Thank you @Wayne Brooks. Fortunately can look at the tax records online, so can see those are paid.

Appreciate the insight regarding code/utility liens and HOA feees

What due diligence do you do on properties before bidding at a foreclosure auction? I'd imagine ordering a title search, but what else do you check on? The properties I'm considering are primarily going to auction for the 1st lien, but I'm curious what else may need to be considered for other liens that could be on the property/anything else messy that would be important to know, other than the condition of the property, which is usually only available for an exterior look when driving by?

Thank you!

Hi Patricia and Scott,

Thank you for your feedback! I really appreciate your perspectives and will discuss further with my wife. 

We would be planning foR it to be a separate structure that would be fenced off from our private yard. 

I agree with both of you regarding the importance of screening for a LT tenant.

What are your thoughts regarding any advantages/disadvantages of having it geared more toward short-term rentals (town allows), so that we don’t have a permanent resident on the property? 

Thank you!

Hi BP,

We have some property and are considering building a main house along with a guest house that we could rent (either long-term or short-term, which are both permitted by town).  A nearby neighbor has a 750sqft guest house renting for $2,250/month, which would be an excellent subsidy to our main house that we would build as our primary residence.

My wife is curious to hear from the BP community if you all would be hesitant to rent a home on your property if you have young kids at home.  Would you feel this is unsafe/undesirable to essentially have a stranger living on your property with you (short or long term)?  As we haven't done this before (our other rentals are not co-located with our primary residence), we would greatly appreciate your thoughts!

Thank you for your consideration.

Best,

Josh

Hi BP,

I hope you're well.  My wife and I are considering this fully renovated multi as a live-in option.  The numbers do not seem as ideal as normal (either with the 1% rule or with the 12% cash-on-cash or >7% cap).  We think that vacancy could be a bit lower than 5% given the area, schools, and direct NYC access via train. Additionally, no property management included, as (interestingly enough) tenants pay the commission for getting the property rented in NJ.  The rents may be a slightly conservative by $100/unit, but until it's rented, I'd like to assume as is for the current analysis.

Could you share your perspective on whether this would make sense as a live-in multi, that we would eventually rent out both units completely within the next several years?  The current analysis is as if it was fully rented out (not us living in it).

Given current rental rates in the area, we would be spending $2300-2500 in rent for a 2br. 
I look forward to hearing your thoughts and am happy to share any additional clarifications.

Thank you all for your time and thoughtful consideration.

All the best,

Josh

View report

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

@Anthony Wick

Yes, I'm preapproved for the 30 year (though I think closer to 4.875 now).  Regarding vacancy rate, I placed on the lower side since it's a college rental and traditionally leases in the area end on May 31 and new leases start on June 1 (or June/July similarly).  I agree it's not a home run property and the margins are very tight.  Any other ideas (in addition to the great warranty idea) that could potentially improve the deal?

Hi @Anthony Wick, thank you for your feedback.  Yes, the numbers I included were as accurate as possible, based upon what the current owner pays, as well as projected taxes for the area at the non-primary (investment) tax rate.  The property is in fine condition, but will likely need a roof and HVAC in the next 5-10 years.   With regard to the interior condition, it's reasonably nice for a college rental.

Would welcome any other feedback you may have.

Hi @Jaysen Medhurst. Thank you for your feedback! Excellent points. Always a pleasure to learn from others on BP.

Best,

Josh 

Hi Ashley,

Thank you for your feedback. Hope you’re having a great weekend.

All the best,

Josh