All Forum Posts by: Jose Sison

Hi BP Community, I have a condo I'm putting under contract in Virginia and the owner inherited the property. Is there specific documentation I should be wary of regarding an inheritance or a condo before or after putting it under contract?

@Jay Marks, is your son currently renting for $6,500 in Miami as well?  I think most of the comments above are directing you to just hold out the term of the lease, so how about a workaround.  Could you rent a unit in the same building for around the same amount as your tenant is paying you?  Your son could move in and the rent would be a wash.

Show off!  :)  

Congrats BP!  Awesome podcast!

I know how you feel.  I've been to a couple of different groups in my area and the main part of the meeting seem pitchy.  I think you should come to these meetings with the expectation that there will always be a product or service spotlighted as way to help you grow or simplify your work as an investor, and focus on networking and creating relationships.  

There's a group in my area that is supposed to be only networking and no sales pitches.  Look in your area for these, I'm sure you're not the only one looking for more networking than selling.

You could also start your own group and create your own rules :)

I don't have any current contacts with property management companies and when reviewing the likes of Craigslist, SmartZip and Rentometer, I'll sometimes get a small range, around $200, wish is great, but other times, the range is larger, around $800-$1000.  

What's your go-to here, just go with the lowest number?

Ok, thanks for the advice guys.

The seller said they had a contractor give them an estimate to do the kitchen and bathrooms for that much. I don't think I NEED to do the upgrades but I'm worried I'll have a problem selling it.

Yeah, I figured that. Trying to get ideas on creative terms, where I can still offer something close to what they are looking for.

Hi Everyone,

Spoke with a seller that recently retired and is looking to move to Florida. Here are the numbers:

Subject Property:

3 BR / 2.5 BA Townhouse, built in the late 80s
Mortgage Balance: $165k
Monthly Payment: $1,867
($1,610 (PIT only) + $83 insurance + $74 HOA + $100 in estimated utilities.)
Potential Upgrades: Almost none, estimate $1,000 for paint/carpet, but it's good as-is.
Seller's Asking Price: $348k

I searched for similarly sized townhouses in the area that sold in the past 90 days, due to lack of comps, and I got an average of $265.5k. I worked backwards from there to include acquisition costs, sale/listing costs, repair costs and my profit and I've come to an offer of $205k (or $184k if I go with a hard money lender.)

(Other townhomes in the area have sold closer to her asking price, but are generally larger SF units and have more bedrooms and/or bathrooms.)

The seller is quite adamant on her price and is willing to go as low as $330k, but that's it.  There isn't a set amount of money she wants because she's got enough in the bank and isn't worried about living expenses.

Thought about taking the subject-to route, and depending on the source, the rental market says I can rent from $1,600 - $2,000.  Like my other post, I don't see much cash flow.

I'm hoping I can get some help/insight with coming up with a couple more offers that can be a bit more enticing.  This seller isn't highly motivated to move, but I'd like to get in front of her with an offer before she hands it off to a realtor in a month.

Thanks for the help, BP!

Hi Everyone,

Spoke with a seller that recently inherited a condo and has fallen behind on payments.  They're paid up to January 2014 and the property is scheduled to go to auction in late July.  Here are the numbers:

Subject Property:

2 BR / 2 BA Condo, built in the 70s
Mortgage Balance:  $130k
Monthly Payment:  $964 plus a $647 monthly condo fee = $1,611
Payment in Arrears:  $5,785 to bank
Potential Upgrades:  Kitchen, 2 bathrooms, paint and carpet for roughly $25-27k
Seller's Asking Price:  $280k

I searched for similarly sized condos in the area that sold in the past 30 days and I got an average of $250k.  I worked backwards from there to include acquisition costs, sale/listing costs, repair costs and my profit and I've come to an offer of $168k (or $152k if I go with a hard money lender.)

(I also looked at other units that sold in the same building, the average was $259k, but all of them had an extra half bathroom.)

The seller is hoping to walk away with $110k so I think that if I offer $168k, he'll be greatly disappointed.

Thought about taking the subject-to route, and depending on the source, the rental market says I can rent from $1,600 - $1,850, but with my property being a little dated, I'm leaning towards the lower end of that range.  I just don't see much cash flow.

I'm hoping I can get some help/insight with coming up with a couple more offers that can be a bit more enticing.

Thanks for the help, BP!