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All Forum Posts by: Luke C.

Luke C. has started 4 posts and replied 9 times.

Here are some pictures. i am in the process of getting in touch with a foundation GC. Thank you for your thoughts.

In the last 4 months there have been 2 side by side duplexes to hit the market. There are few available in our market and with in the last year prices have increased 15% because of this. Are you acquainted with my area? I have found properties but all are far over priced. Please give me something constructive if you wish to reply. 

So I received an accepted offer on a duplex and had the inspection done today. The inspection showed two horizontal cracks about 1/8 inch wide and bowing in about 1 inch. The inspector was very detailed and found a few other items and radon levels just above the recommended EPA guide lines. I'm worried because I know the foundation repair can be expensive and lower the property value. Also having a radon system installed would be a must. I am considering backing away from the deal which is tough since I have been looking for two years now. My next step is to have the crack checked by an masonry contractor and look into having the sellers pay for the correction. Just feel like I may be getting in over my head. 

The home was build in 1978 and one side is in pretty good shape and the other needs a good amount of TLC. The roof is newer, Furnaces and water heaters are newer. Thoughts?

Post: Purchasing first duplex with existing renters

Luke C.Posted
  • Wausau, WI
  • Posts 9
  • Votes 1

Hello Everyone,

I'm hoping to get some input. I am considering purchasing a duplex and made an offer on the property. In my offer as a contingency requested a tenant be given notice to I can live in one side of the unit. The owners sent over leases and one side has a clause that the landlord can end the lease within 15 days upon change in ownership. 

Stated " not with standing any other provision of this lease, landlord may terminate this lease upon 15 days written notice to the tenant that the premises have been sold."

So the side that has this stated in the lease is in much better shape and updated. The lease copy they sent doesn't have signatures, only the renewal of lease has been signed. So I am going to see if I can get the original signed leases to verify. The seller has refused to end either lease and wants me to take care of it. Both leases still have more than 6 months left. 

My plan was to occupy the side that needs to most work but the landlord has said he has been there for more than years and won't end the lease. I understand legally he can't unless stated in lease so if he could vacate one side I would understand. I'm not sure what to do because I don't want to start on the wrong foot and this could be my first property. My spouse also found out the tenant who has been there over 10 years has a son living in the basement who has felony for theft. Our market is dry and I have been looking over three year but I don't want to make bad decision. I even thought of breaking the lease because the lease say no pets and theirs a snake in the basement.

Should I see a lawyer about this? I even thought of cash for keys but most of my funds will be going to the down payment. Any advice would be appreciated.

Thanks

Post: Condo Investment or rent and keep saving

Luke C.Posted
  • Wausau, WI
  • Posts 9
  • Votes 1

Thank you everyone for your input. I apologize for not responding earlier but it is the holidays so im sure you all understand. I am still waiting to hear about rentimg out the condo. My plan would be renting it out to mother who is currently renting. I have called a few banks and i have been considering 10/1 arm on a 30 years term. Interest rate at 3.75 with hoa, taxes, insurance and mortgage im at less than 600. I would like to do a 15 year but dont want that large payment each month, perfer making large payments once a year and a little extra each month.

Post: Condo Investment or rent and keep saving

Luke C.Posted
  • Wausau, WI
  • Posts 9
  • Votes 1

Hello Everyone!

Need some help.. I have been searching for a duplex now for two years and I'm getting tired of throwing my money into rent. Recently come across a condo for around 69k. Its one bedroom with 1000 sq feet, condo fee is 135 which includes heat water and trash, taxes $1200. I will save depending on the loan 100 a month. Nice place, built in 2004, great location has patio though it looks worn which I am waiting to hear about. My wife and I were thinking we would live there a year or two then rent it out which is allowed pending approval which I will also get more info on.  Any thoughts?  Is this a good idea? If so what loan type should I do? Guess condos are pretty new to me.

@Adam Kozuch . Thank you for commenting. I have been doing my research, but I believe you are right. This is the 9th or 10th property I have looked at, but the first side by side with 3 beds in my price range. I am happy it is not on the market just don't want to regret passing this one by. I know there will be others. Just wish I knew a way to respond because I am not ready to make an offer on thing without seeing the other side. My broker said it could be a legal issue if I look at it then say I don't want to move forward on the purchase. I really appreciate your input because it has been on mind a lot. The search continues! 

How did you find your first property?

Thank you everyone for your insights. Thought I'd give you a little more info. 

The house is in Weston has a tax value of 189,000. Honestly I believe its worth like 140k, but I am not an expert. There is a duplex on the market down the street priced at 198k with a bigger yard in better condition. This house was built by the owner, but it looks like they have just been collecting rent and only doing work as it comes up. Renting wise I love that it has two bathrooms, I love that has decent size rooms and I beam floor joists. 

She said is selling the unit because her and her husband are going older and decided to start selling one a year. He husband is a builder.

The roof is not a worry except for the skylights, but water heaters and HVAC are over 20 years old. I see potential but the seller is making it difficult to make an offer without showing me the other side. I know with some work it could possibly rent 900 or 950 per month.  

This is where the story gets interesting. After I looked at one side she told me there might be another she would consider selling, but it was way over priced at 175K. I found out what street it was on then over heard a co worker talking about looking at a duplex in Weston to rent and he was going to look at it after work. Found out it was on the same street owned by the same person. The owner told him she would have the door open and to take a look. So I went with him the house was the same layout a mile down the street. They were in the process of painting replacing the carpeting putting new cabinets in the kitchen. Leaks around the toilets were being fixed and they were asking 900 for rent.

Her trying to get me to make an offer without all the facts bothers me. She even told me it would be wasting her time by going below the asking price. So where it stands is I am continuing to look but like everyone has said there are few out there. Every place I have looked at after has made me think about that duplex again. Most I have seen are older, two bedroom or have shared utilities and reek of cat piss. 

Wouldn't an FHA Inspection help to give me a better idea what problems I might face.

Feel like I'm just trying to convince myself this side by side is worth it because it is the best price I have come across and its not on the market.

Hello Bigger Pockets! 

I have wanted to be a real estate investor since I was in high school. Two years ago I married wife of my dreams and we activity looking for or first investment property. Just a month ago I was pre-approved for FHA and getting so close, but we don't want to jump into anything and get in over our heads. I looked on all the sites, been on craigslist and trying to network with everyone, but have come up with limited options because rents are going up due to higher demand. I reached out to an agent I talked to a year ago who owns over 40 properties and told me about a couple properties she would consider selling which are not on the market. She has been terrible at communicating and after a couple weeks we were able to take a look at one side.

Here's some of the figures:

3 Bedroom 2 bath 1600 sq ft each side built in 1995

One side is being rented for 850 and just signed a new lease other side is finishing up a 1 year lease for 800 per month and will go to month.

Taxes $4900

Has new roof, original HVAC systems and water heaters.

The duplex needs updating and is rough around the edges. 

Needs painting and some dry wall fixed, I noticed the skylights seem to have paint peeling and little black around the edges, may need to be replaced. Bathrooms need some remodeling and some leaking around toilets. Also the kitchen is ok, but again needs updating maybe some new appliances.

Had a family member come and hes saying maybe 20k worth of stuff, but some I believe can waiting depending on inspection. He advised not moving forward, but he hasn't seen whats on the market at that my price range. 

Its in a lower income neighborhood but its blocks from shopping and schools.

This is the problem its on my high end for price 150k, and the person selling it wants an offer before showing me the other side because she doesn't want to scare her current tenant. She said I could stip as a condition of sale is seeing the other side. Thoughts?