All Forum Posts by: Katie M Reece

Hello! I'm wondering if anyone else is stuck waiting over a month for an appraisal? We were supposed to close 3/23 but our appraisal didn't get scheduled until 4/8! Sellers are not happy and I'm wondering if there's anything I can do to help things along?? Is it correct that the lender chooses the appraiser and that there's no way around it if they make you wait? Thanks!

Hello! I was wondering what the best way to accept rent online would be? Can people use platforms like PayPal, Zelle and Venmo? Can you give them an account number to set up online bill pay through their banks?

Thanks!!

I'm purchasing a couple properties that are currently recognized as duplexes by the county. However, they already have two studios that have not been rented out, which I plan to remedy. In my area (and maybe everywhere?) the zone is the same for a duplex up to 4 units. However, these properties also have two, 2 car garages that might make the units easier to rent but they don't add much to the rent. I am wondering if I could convert them into two additional studios, but I don't know the process or how difficult it usually is to get zoned from the smaller multi-family to the larger. The area is full of apartment complexes, etc. I'm in Phoenix, AZ

Just wanted to share how I made several mistakes in a row and am now paying some SERIOUS stupid tax!

• Had an accepted offer on 3 duplexes, got cold feet after the inspection showed major neglect and signs of scary problems.
• Came back with a lowball counter which the sellers shutdown flat. The numbers still worked, even with major reno budgets, because each duplex has 2 undeveloped studios (so 6 free studios for the deal) which are going for an easy $1.50/sq. ft in my area.
• We had been the first offer for these properties and thought that if we walked the sellers would be more reasonable with the major repairs that were needed. We were WRONG!! The offers came flooding in and we had to pay an additional $10k to get them to accept our new offer (and they refused to fix any of the repairs we had cried about). Plus we lost one of the buildings that immediately went under contract. Now to add insult to injury our interest rate jumped over a half percent.

The moral of the story (as far as this Noob can see) is to run your numbers, check them twice and then COMMIT!!

Hello! I am currently purchasing 3 multi family units and am wondering (hoping) that I can have the properties owned by an LLC. I have been told that the mortgage will need to have a personal guarantee, which is not a problem, but I would like to have the legal protections of an LLC in place. If it is possible, would you recommend each property (they are right next to each other but have different addresses) in its own LLC? Thanks!!

If I need to renovate some duplexes from top to bottom, what order will be most efficient?

1)Plumbing

2)Electrical

3)Interior Cosmetics

4)Roof (how disruptive is this to tenants?)

5)Exterior Cosmetics

Would replacing water heaters and HVAC units affect anything?

Thanks!

I am working on purchasing three duplexes that have 5 existing tenants. The problem is that the PM company of the sellers has allowed the properties to become almost uninhabitable (from my perspective). Brown water, non functioning appliances, etc. I'm not sure how to go about getting the properties fixed when there are existing leases that need to be honored. Are the conditions of the units a reason to give them notice and have them move? I know that they have been living this way for awhile but I am not willing to inherit bad living conditions and leave it that way. But we are talking about major renovations that people wouldn't want to live through and I certainly can't afford to put them up someplace else. What's the usual protocol for renovating with current tenants (assuming the renovations should not be put off until the end of the lease).

I hope you're right but I'm not on the leases either but it's my understanding that I am obligated to honor those.

I am in the process of purchasing properties that are currently under contract with a PM company. I have asked several times for that contract to make sure I will not be bound to use them. The properties are in a complete state of neglect and disrepair and they have been absolutely terrible during this process. No showed three times when they had scheduled to show the properties. Refused to notify tenants of upcoming inspections. We had to reschedule inspections three times and the seller's agent had to serve the notices. They refused to give keys to the seller's agent for empty units. They have not answered any phone calls or emails from anyone involved in the sale. There is no way I want these people managing my properties. Any input on the laws? I'm in AZ.

Hello! I am considering 3 properties. They are nightmare properties (everything that can be wrong with them—is). But even with an enormous reno budget and conservative rent estimates, I believe they will cash flow well (which has been hard to find in PHX). My in-laws are begging me not to buy them because of the rough neighborhood (they invest in high end properties, rent them for just enough to cover the mortgages and wait for them to appreciate). That’s great but we want cash flow properties, not (necessarily) appreciation. What type of cash flow would you need to justify 1) bad location and 2) big reno?