All Forum Posts by: Kenneth Cook

Jimmy, thank you for your time.

I do not believe these are major rehab issues.

For example, the roof looks good overall, and the replacement 7 years ago, the inspector said looks like it an accurate time frame.  The issue was missing shingles, its only about 6.  It would just be something that needs to be done right away.  This is something that I am capable of doing myself.  Ive done roofing for a company a decade ago.  Not fun, but can do it.

The electrical boxes would have to be contracted out.

The wall being pushed in by the terrain is something also to be contracted out.

Floor joyce is not to bad to repair myself. 

However, for the sake of lowering my asking price I am getting professional quotes for all the work regardless of if I do any myself or not.

I'm more or less looking to see what a reasonable negotiation price would be.

I do not see much room for the rents to go up a lot in this area.  It seems pretty average.  Remember, in about a year or so, I will be moving out and will be able to rent out that 4th unit which will add at that point an additional $600 in income.

Hello,

I am purchasing my first two rental properties.  I have secured funds and pre approvals etc.

One of the properties is a 4 unit house that I will obtain with a owner financed %5 down, not FHA. It will be a 30 year loan, my credit score is 730s. I could put more cash down, but want to save it to make more purchases. I plan on buying 5 properties by April of 2021.

The 4 unit asking price was 130, after walking through I offered 125 it was accepted.

After in inspection, the following "major" issues were identified.

Basement wall was caving in, inspector said there are a couple different ways, some contractors will place steel beams along the wall, or take the whole thing down and redo the wall.

The unit has 4 electrical boxes in the basement all set for 100ws   Problem is the line going into the house is only a 200W line.  So from my understanding, if each unit pulls 55watts, it has passed the line power, but the breaks would not turn off as they are set for 100w.  

Solution-4 separate units at 50w each.

The floor joyces had cracks in them, and one was not even connected to the other end, it was held up with a board and some cinder blocks.  Not a major fix, but something that did need to be addressed.

Small roof issue which was just missing about 6 shingles, but its exposed wood so would need to be repaired right away.

The overall condition of the outside of the house, I would want to reside the house within 2-3 years.  Inside units were all redone cosmetically by current owner.  So they are still in decent shape aside from the "clutter" some of the tenants live in.

My mortgage was estimated at 1100 a month.(on a 140k pre-qualify amount this includes tax, insurance etc)

I put vacancy at 5% as each tenant is currently in a lease until and have been at the property for some time.  Only one that was on month to month and not paying on time is the one in the unit I am taking over.

Repair and maintenance is at 13$-   Again, all inside units are in decent shape cosmetically, also no pets allowed.

Cap ex is at 4%-  I plan on using left over funds from repair and cap ex for any major issue that may come up.  I also have $5k saved up for emergency repair of the unit should I need something right away.

Current rent is 900, 650, 600, and 500.  I would be taking over one of the two bedroom apartments, so it would eliminate 600.  So total bring in is 2k for a few years until I move out.

Using the report, its showing $421 in cash flow, with a COC of 43.97% This is at the current asking price.

I am curious how much wiggle room I would have in the asking price with these current repairs that would need to be made and if others thought this was a good deal.

I do have a contractor that will be giving me estimates next week.

Again, this is my first property so not so comfortable with haggling, but I know and understand, I have to, to become successful in this business.

@Jonathan R McLaughlin check the laws of your state. Emotional support does not qualify for a service animal in NY

@Nicholas Aiola

Hello, I am buying my first rental property. It will be a. 4 family in upstate NY.

It will be owner occupied.

I’m looking for tax advice to ensure I’m getting all benefits that I would qualify for.

Is this something you can provide or do I have to work with a more local team?

I’m not finding many tax agents or cpas by me. The agent I called I did not like the lack of being able to answer some simple questions and they have not returned my email.

It looks like I have to do something non locale but though it would be okay as I can always fax/email info

Good afternoon, I am buying my first rental property that will be owner occupied. It is a 4 unit in the city of Fulton, NY.

I am trying to find a good tax accountant that can assist in structuring future deals and any tax breaks I should qualify for.

When I do a local search, I only find one agent. When I reached out to this place and asked some simple questions the person who answered the phone could not tell me if they were capable of what I was asking.

Is there harm in using places that are not local? Couldn’t I just fax/email receipts etc over to a job local place?