All Forum Posts by: Justin Elliott

Hello BP,

I'm closing on my first rental property in less than one week and I'm wondering if anyone has any good resources or advice on what my next steps need to be.  I've got a triplex in the longfellow neighborhood of Minneapolis.  One tenant will stay on a month to month lease that is in place.  The other two will be vacant.  I don't have alot of work to do to the 2 BR and 3 BR vacant apartments besides paint and a few things to fix up.  I have applied for my renter's license with the city.  I know I need to get it painted and get pictures taken and then post the listings.  I also need to get ahold of a lease.  Besides that I'm wondering what I may be missing. Thanks for any feedback!

Justin

Question for the community.  Since I'm not a handy guy myself.  Is it typical to have an inspector or GC walk through the property the first time you see it during the showing?  If so, do you pay them to do the walk through.  I'm looking at multi units and so that complicates the process a bit more as they may not all be vacant at the time of the showing.  I was able to find an inspector that would provide feedback about the property for $150 per showing.  Is that reasonable?

I'm looking for a general report on foundation and how much work certain projects may be before I make an offer.

Thanks,

Justin

I've been looking in Brainerd recently based out of the cities do business up there so I could make something work depending on the time love to meet up let me know thanks

It wasn't excepted but I feel it's a success. I've spent the last year or so getting ready to invest reading books saving money etc. My question for those of you that are experienced investors is would it have been has a good deal? Here's how the numbers broke down. List Price: $235,000 Single Family property that is a legal duplex. Two kitchens two water heaters two electric set ups and one furnace. Rent for the current tenants is at 2300 with a lease expiring in August. My realtor and I figured it needed about 35,000 to turn it from a four bedroom one unit to a 2 unit that had three bedrooms and two bedrooms. The rent after renovations that would take place in August would be around $3000. About a mile from the college. I had the money approved for financin. about $25k in cash and $70k approved for a HELOC that could be used for the down payment and or construction. I offered list price and asked for 3% closing costs their realtor said that there were several offers that day and they needed final and best by 6 PM. I came back with an offer of 242,500 with no help in closing costs. I found out the next day that I had made a high enough offer. My nervousness was that I was highly leveraged using a HELOC for a down payment partially. The terms of the HELOC are 5% five-year with .5 points. Interest-only option. After rehab I was $270k in with about $3k in rent so this passes the 1% rule but would I be making a mistake by being this leveraged on my first property. There aren't many duplexes in my market that are listed at this price most are higher and the ones that are lower would be mostly a cash flow play. Thanks!