All Forum Posts by: Kevin Connelly

Hi All,

My partner and I are working to put a 9-plex under contract for $285k with a $1k escalation clause. We have not gotten it under contract yet but we should have a decision by Monday. The property is essentially turnkey with less than $10-15k of potential work needed, and expected gross income of $4900-$5400. The strategy is to refinance after the 12 month seasoning period to pull the downpayment + interest owed to private money lender. We would not be putting any of our own money into the deal and this is not a standard BRRRR deal because we can not force appreciation with a rehab.

We are going to use private money to fund the downpayment @20%, roughly $64k with closing. Secure a commercial loan for the remaining 80%. 

Private money rate of 12-15% on a 12 month term no payments, full repayment plus interest due at maturity.

Generally, I'd like to get some input if we are thinking about this the correct way or will we run into issues with one or some of the following:

1- Will we have trouble securing private money with no payments until note maturity?

2- Will we have trouble refinancing and pulling out ~$73,600 (downpayment+interest@15%)

3- What other scenarios should we consider?

Much appreciate!

@Al D. Thank you for the links and resources.

Landlord for SFH in Hayward, CA. Tenants have been relatively communicative about their financial hardships during COVID-19 and over the last several months we have worked together to keep them in the home and even reduced rent for several months during the summer.

However, they requested another reduction for the months of January and February which I split the middle and agreed to a reduced rate for January but not February. Additionally, I suggested we explore mutually breaking the lease early to help them find a place that is more economical. I have no intention of evicting them but rather helping them find a place that is more affordable. 

The response was them sending me 25% of their monthly rent and a signed Declaration of COVID-19 related financial distress. 

After reading through the Housing is Key website it looks like my hands are tied for legal action until February, when the act expires. (barring any extensions) 

Ideally, I'd like for the tenants to pay the reduced rent they requested or break the lease to find something more economical, however I realize that is short sided.

Curious, what other courses of action have other landlords taken?

If the tenant is unable or willing to pay rent, are there ways to work with the mortgage company to delay payments? 

Please make any and all suggestions.

Thank you!

Hi,

I have a SF rental in Hayward, Ca. I am looking for recommendations to help identify and fix a heating issue. Heat is pushing to all rooms except the master bedroom, I suspect it’s a duct issue but would like to have someone take a look.

Any great handyman recommendations?