All Forum Posts by: Levi Caron

Thanks @Mario Mormile, yeah I'm actually looking at a 7plex and 5plex that has the same owner. I'm trying to structure this deal to create great cash flow. I might be able to get owner financing terms also.

Hey BiggerPockets, So I've been keeping my eye on a 4plex that had been on the market for over six months. My realtor kept asking me if I wanted to make a offer and I kept feeling reluctant because I knew I was going to low ball him by 20%. I had a certain level of comfort with the property because I own the very same 4plex two blocks away and mine was renting for $500 more total per month. One weekend while I was in SF for a wedding I decided to send out five offers on all different property's with a 20% below asking price. The only property that countered was the 4plex. The rest of them did not even respond. Asking price was 175k and I offered 150k cash with 2 weeks to close.I did not have the money personally but had private money lined up. There counter was at 160k which my realtor thought I would take. I declined and stayed with my original offer. The next day my realtor called me excited and shocked that they had excepted the offer. As I began to think about it, I knew I had some room to potentially wholesale it but that idea had not popped up until was talking to my REIA group about it. So I began to advertise it on craigslist for 165k and explained what the proforma on the property should be and that I would offer the inspection report to serious buyers.

I began to screen through the emails and found a couple people that seemed like serous investors. One gentleman in particular was out of state and wanted to get the property under contract before he came to look at. He agreed to pay 165k and reimburse me for my earnest money and the cost of inspection. The inspection took longer than usually to schedule because we had to schedule around the tenants. I filed my first extension with the original owner and disclosed to the sellers realtor what was going on.

By the end of this deal we had submitted 3 extension that came out to about 5 weeks total to close. But, I am happy to say that I made 15k, received by $500 earnest money back, and had the $600 inspection report paid by the new buyer. I guess there is still some deals out there on the MLS.

thanks

Levi

Thanks @Jack Gibson, I know right now it is not a good deal. I guess what I'm looking for is advice on how to negotiate it into a great deal. Since she owns all the property's outright and is motivated I should be able to structure something for her. She has already said she will come down in price a couple times. Any suggestions of how to structure this with owner financing? 

Thanks @Shawn C., Yeah the numbers are not good right now but I'm hoping that her motivation and after inspection will hopefully give this deal some potential. I'm thinking about giving her 3 different purchase scenarios to start with and to see how much in the price she is willing to lower. Then, renegotiate after inspections and contractor walk through's.  

Hello biggerpockets community, I'm looking at a deal right now that is 2 triplex and 2 single family homes all in the same town. The owner owns all the properties outright and will consider carrying if the deal is right. She wants to move out of state to be closer to family. She's in her 70's and has had some health issues. She has told me a couple times already that she is motivated and would like to sell them all together as one package. She even said she would consider lower the price if I bought them all and had a descent down payment. I have access to private money at 7.5% interest rate that can be ready at anytime. The town they are in has a strong rental market with increase job growth. Since it would be a lot to take on right away and I may consider wholesaling or flipping a couple if the deal is right. I'm looking for advice on how to put this deal together that will be a win win for both of us.

1. Triplex asking 290k total rent is $2315 with room to raise

2. Single family with basement asking 180k total rent is $850 and basement is $600

3. Single family asking 135k total rent is $725 and basement is $475

4. Triplex asking 200k and total rent is $1325 zoned commercial or residential

thanks

Levi

Hello biggerpockets community, I'm looking at a deal right now that is 2 triplex and 2 single family homes all in the same town. The owner owns all the properties outright and will consider carrying if the deal is right. She wants to move out of state to be closer to family. She's in her 70's and has had some health issues. She has told me a couple times already that she is motivated and would like to sell them all together as one package. She even said she would consider lower the price if I bought them all and had a descent down payment. I have access to private money at 7.5% interest rate that can be ready at anytime. The town they are in has a strong rental market with increase job growth. Since it would be a lot to take on right away and I may consider wholesaling or flipping a couple if the deal is right. I'm looking for advice on how to put this deal together that will be a win win for both of us.

1. Triplex asking 290k total rent is $2315 with room to raise

2. Single family with basement asking 180k total rent is $850 and basement is $600

3. Single family asking 135k total rent is $725 and basement is $475

4. Triplex asking 200k and total rent is $1325 zoned commercial or residential

thanks

Levi

Hello biggerpockets community, I'm looking at a deal right now that is a 7plex and 5plex that is owned by the same person. The properties are right around the corner from each other. She is asking 350k on the 7plex and 250k on the 5plex. I would offer her 300k and 200k since her price is a little high per door for the area. She owes 80k on the 7plex and 130k on the 5plex. Each building is renting an average of $500 a door for a 2 bed 1 bath. The average in town is 525-550 per unit. The 7plex is furnished and has storage space to be rented out under the building. She is willing to carry if I pay off the debt. I have access to private money at 7.5% interest rate that is ready when I need it. She has owned the 7plex for 10 year and the 5plex and little less. Her husband passed away last year and she wants to move away to be closer to family. Both properties are in good shape and she has done a good job managing both properties. I would like to create a situation that will benefit both of us and give her monthly income so she doesn't get taxed too hard. I'm looking for advice on how to structure this deal.

Thanks

Levi

@Skyler Smith

I agree with you Skyler. I'm looking to get a good enough deal on the property to be able put the utilities on the tenants even if I have to lower the rent a little bit. I'm hoping that most of the tenants are on a month to month so I could possibly fix up one unit at a time.

@Aaron Mazzrillo

thanks for the advice Aaron. I'm going to keep shopping until something really make since with numbers and locations.

I've been looking to buy a multifamily in a new area that should have good numbers. A lot of the properties I'm looking at are close to a college and have a strong rental history. I'm finding places that are 100k and bring in 1400 in rent. I at first was very excited about these numbers especially if I could purchase the property for 85k to 90k. But, in this town the landlord seems to pay all the of the utilities which take away most of the cash flow along with high taxes. How do I put gas, and electric back on the tenants without loosing them? I spoke with a local realtor and he said that he sees a lot of tenants taking advantage of this especially in the winter. One property I was looking at had a $350 utility bill because of all the heat being used. How can I get creative with these types of properties to make them profitable?