All Forum Posts by: Jason A.

thanks @Alex Deacon - at what price would this be attractive to you (appreciate you don't know the geography and site unseen). I offered $235K and seller countered with $255K (which I will not pay). 

Hi all – would appreciate thoughts on the following deal:

Substantial deferred maintenance on the interior – needs two gut reno bathrooms in short order (would likely aim to do so at next vacancy). Rest is simple stuff: paint, rugs. Kitchens are OK.

o Front yard looks like a war zone – needs new yard and flower beds.

o Two of the three units share a water heater and oil heat… so landlord has done a “rent included” deal and covers nat gas and oil for these two units. This means I’d be exposed to the price fluctuations of these commodities and tenants with no incentive to conserve. Not ideal obviously. (All electric is individually metered).

o I would do much of the renovations and improvements myself

o The basement is a walkout and can be finished into additional living space – so additional bedrooms would work. Have spoken with municipality, the basement cannot be turned into a 4th unit unfortunately.

o The biggest deferred maintenance are the bathrooms – so while a major cost, something I could absorb.

o Depending on cost (which I have no experience estimating but am working on) I could segregate the nat gas an oil for the two units which, over time, could pay off with each tenant covering their respective usage.

Appreciate any thoughts. All the properties I own thus far have been out of state or new construction – so this would be a hands on project / new thing for me. 

I second @Mat O'Grady re: insurance - looks to be on the lite side. 

determine when the roof, windows, electrical, plumbing and kitchens/bathrooms were replaced or upgraded to get a sense of capex. also, water heaters and furnaces. 

it may have been covered here but as you may know, if you occupy the property you may consider an FHA loan. typically this would require 3.5% - 5% down payment - as long as you can satisfy the "occupancy" criteria for whatever period of time, could be something worth considering.

Hi @Jose Garcia - thanks for your reply. not sure how that works from my perspective as I am not a tenant. 

However, one idea that has been presented to me is to have the seller carry the mortgage for some period of time, then I'd refi with a lender down the road. on the basis the appraisal is say 20% above my purchase price, I'd then be out of pocket 5%. Obviously targeting an appraisal 20% above my purchase price is not easy and would require a reasonable period of time. 

thanks @Cliff H. very helpful! 

hi all - I have what could be an attractive opportunity to purchase a small commercial property (two story, two unit) where both units are currently tenanted (one tenant is month-to-month while the other has two years on the lease). 

the seller wants to liquidate and walk away from the responsibility as he gets older (now in his 70s). as he owns it free and clear, he's willing to be flexible including seller financing. 

from reading this forum and based on my own experience, i know creative lenders are increasingly difficult to come by. while price negotiations alone could get me to a level that i feel is worthwhile (and swallowing the down-payment out of pocket), i am much more inclined to focus on the out of pocket side of this equitation.  

any thoughts or ideas on if a lender would allow the seller to finance a portion of this - and within the state of NY if anyone has a referral or suggestion on a lender that would be great. i don't think i'd be willing to do this over 2.5%-5% out of my own pocket, which i appreciate it tricky. 

thanks very much. 

thanks for your thoughts @Chad Fagan

Dear all – I am considering making an offering on a property in proximity to a well-known university in CT. What I need and have not yet been able to find are specifics with respect to state and local laws.

• With the intention of renting to students, what should I consider in advance – specific to CT and local requirements?
• Who can I contact within the local municipality to discuss any approvals that may be required specific to university housing.
• For anyone renting in CT, have you faced any requirements, implicit or explicit, specific to student housing?
• I appreciate anything university specific I’ll need to obtain via Residential Life etc. and I am working on that.

Much appreciated 

Hi BP Members, 

In correspondence with an insurance agent on a policy, agent took the liberty of sending over a list of "unacceptable risks" (listed below). The agent suggested I include it in all my tenancy agmts to ensure tenants "sign off". 

I have properties in different states with different ppty mgmt and lease agmts obviously vary, so not sure to what extent these points are already spelled out (if any). 

Question 1: do you add an addendum of requirements / conditions to your leases and if so, do you include any information specifically from your insurance agent (plus other basic points, e.g. no drug use?)

Question 2: any general ideas people use to protect themselves?

Thanks for your thoughts! 

• A swimming pool with depth greater than 2.5 feet
• Any business being run out of the home where clients, customers or other parties come to the home (i.e. massage business, daycare, beauty salon, et cetera.)
• Student housing
• Trampoline
• Any wood burning stoves in home or garage unless professionally installed, meeting underwriting criteria of insurance coverage
• No exotic animals
• Unacceptable Dogs:
  • oPit Bulls
  • oAmerican Staffordshire Terrier
  • oAkita
  • oChow
  • oDoberman Pinscher
  • oPresa Canario
  • oRottweiler
  • oAny Wolf Hybrid
  • oAny Mix of Above Breeds
  • oAny Dog with a Bite History