All Forum Posts by: Kevin Siedlecki

Thanks, @Roy N.  Part of the problem is the seller paid cash and converted the property 30 years ago, so he is unaware of all that needs to go on, and there is definitely nothing on record.  We ended up giving up on the deal.  

@Craig Bellot Yes- taxes here are not high, so that helps.  By decent cash flow I'm looking for about 10% cash on cash after all expenses.

@Craig Bellot and @Beau Blinder 

Interesting debate on the CT market.  I think I fall more on Beau's side of it, but let's discuss.  My current properties are renting for closer to 1% than 2%, but that's enough for good cash flow and great returns when you consider the equity you're gaining every month.  There are some neighborhoods where you can hit 2% or more, but I prefer the stability and peace of mind of owning in better neighborhoods.  That said, I don't own nor I have really considered buying something that would meet the 2% rule because I just don't want to be in those neighborhoods. Maybe I am making unfair assumptions about what it would be like to own there. What are your thoughts?

Looks like I am going to revitalize this old conversation.  I am in the process of buying my first commercial, and I can't seem to get a quote on the environmental.  My lender is trying to lump it in with the appraisal, but won't give me a number.  This is not a very expensive property, so $5-10k (the number I saw here) is a significant up-front cost.  Is that an accurate guess?  

@Christopher Malone Thanks. Or, in the case of my residence, there was still a lot owed on the loan, so it goes on MLS at a small discount, but without any kind of problems like looking like it is about to fall over.

@Christopher Malone It does, thank you! So that is why the MLS foreclosures are closer to market value: the starting bids are not low enough to be worth to the risk of buying as-in at auction. Is that right?

@Nick Dillaha While the previous posters are correct as a general rule of thumb, I have received financing that counted future rental income as part of my income.  It took some looking, but I did find a small bank willing to do it for a fully-leased property.  My suggestion would be to get in touch with your lawyer or real estate agent, ask who they recommend, then make some phone calls to explain exactly what you are looking to do.

My current residence was a foreclosure listed on MLS. The offer and closing process was no different from any other transaction, and I got it for only about 10% under market value. Now I am looking at auctions, and I realized that I do not know the answer to this seemingly basic question: how does a property get to auction as opposed to being listed?