All Forum Posts by: Kevin Sullivan

I recently purchased a 4 unit building using seller financing. The previous owner and mortgage holder claimed he did not receive any security deposits from the tenants, thus no deposits transferred to me upon closing. One of the tenants who I inherited recently stated she paid a security deposit to the previous owner many years ago. She still provided me with a check of the full amount requested for the deposit. I am wondering if there are any legal ramifications for me depositing this security deposit check when the tenant is stating they already paid one? I did receive a hand written letter explaining this situation from the tenant in question, including a portion of it stating “I understand you have a right to request a security deposit as the new landlord, but I wanted you to know this information” Thanks in advanced!

Looking forward to finally being able to come to one of these!

Thank you!

Any word on a meet up for May yet? I’m really interested in joining you all!

Hello, I am looking for attorney recommendations, specifically with experience in overseeing seller financing deals. I am a buyer in talks with a current seller who wants to finance the deal. Any assistance or recommendations for someone in the Erie county area would be greatly appreciated! Thanks, Kevin

Hey Meghan, welcome to BP from a fellow WNY investor and LEO! I actually own an upper/lower in the exact area you described, just north of the basilica. I have almost two years under my belt, with this property being my first one. There have been a lot of highs and lows throughout the process and it has been a great learning experience. If I had one recommendation it would have been to have the closing contingent on the property being vacant. I believe it's important to screen your tenants yourself to make sure they will fit. I didn't do that, and had an immediate issue with the upper tenant involving not paying rent and smoking in the unit. Obviously you're past that point, I would just be transparent with them as best as you can do they can prepare to move if need be. Giving them the flexibility of paying the security deposit over the first few months is definitely a good idea. Just as others have already stated, you should walk through the apartments with the tenants and complete a detailed checklist with them so you know the condition of the units. Early on my "bible" was "every landlord's legal guide" by NOLO. This came with great info as well as almost every form you need and the ability to edit them to your liking. It is a great resource! Of course there is a ton of literature out there however this is what worked for me. Good Luck and if you need anything don't hesitate to ask!

Not sure if there is a problem on my phone or the mobile app but there is no date/time/location showing up. I'm definitely interested!

Hello everyone:

I purchased my first income property in April of this year.  It is an owner occupy double.  I put 3.5% down with an fha loan.  If I wasn't occupying, I would clear approx. $375/month after mort., taxes, and expenses.  My question is, how do I go about increasing my portfolio?  I admit, I am a little anxious to acquire more property, and the main issue is capital.  I am currently saving approx. 1k a month for my next house but I know I would need at least 20% down to do so, so this will be a long process.  Although I purchased my first property, I continue to look and have been seeing many properties I would like to buy if I had enough money to do so. 

Any of you out there seek other means beside waiting around and re-accumulating cash slowly?  Is there anything I can do besides waiting around to refill my nest egg? 

Hello Travon.  I currently live in an apartment in the city of Buffalo, and I purchased the home about 10 minutes away.  As it stands now, one of the units in the home is currently occupied. The mortgage, without any of the units occupied, including taxes and insurance is only approx. $115 more than my current rent.  With the current occupant (in the smaller unit), moving into the home will actually save me an extra ~350/month. Once I move into the smaller unit and rent out the larger one, I will be saving an extra ~500/month on top of my current savings rate.  So, ideally, a year from now, I would be able to afford to purchase a second property with a conventional 20% down mortgage, if all goes to plan.  

Thanks, James, I appreciate the support!

Hello Everyone! Thanks for taking the time to read my first post.

I'm curious to hear if anyone else started out by occupying their first income property.  I'll admit, I just created an account on here a few weeks ago, and its kind of overwhelming.  

I am currently awaiting commitment from my lender on a 2 unit house which I am taking out a 3.5% down payment 30 year FHA mortgage. I hadn't heard of BP prior to this. While I have been passively looking for a multi unit house while saving (I wanted a much bigger down payment), I just couldn't pass up this opportunity.

I am just curious if anyone else started out this way.  I am interested in owning multiple properties ranging anywhere from 2-4 units, and hope to purchase another next year.  Although I will be living in half of the house (doing cosmetic work in unit 1, then moving to unit 2, doing the same, then moving out), after I move out the house will net me at a minimum $300.00 a month after PIMI.

Many of the things I have read usually consist of people purchasing with cash or a conventional mortgage, so I feel my situation is a little more unique, however I could be looking in the wrong places.  If anyone could steer me in the right direction I would appreciate it.

Thanks!

Kevin