All Forum Posts by: Lynn Tran

NEED HELP with this 4plex I’m in contract with and the last couple days of inspection period so I’m needing advice ASAP as I don’t have a lawyer for this situation to advise at this time. Sorry for the long post but I figure the details are important!

I am the buyer. The seller has been difficult to get things to me in a timely matter and also discussed having COVID issues during this precess. Closing should be July 21st.

All tenants are on month to month and this one Tenant Unit A is the property manager and on their lease, it says year to year lease agreement. The seller thinks that they can just get the tenant to sign a document that says they will change their lease to month to month but I think that’s not possible. I reside in Louisiana.

Lease Term:

“ 8. The term of the Lease is a periodic tenancy commencing at 12:00 noon on July 1, 2020 and continuing on a year-to-year basis until the Landlord or the Tenant terminates the tenancy.”

I’m wanting to increasing rent by $200/mo for Unit A and I requested a credit towards closing from the seller to offset the loss of income.

From my realtor:

“The sellers broker said that they will not agree to the credit for unit A but it is their opinion that the language of the lease allows them to convert the lease to a month to month lease. They said that they will have the tenant sign a month to month lease immediately if that is your wishes. Please advise. “

 Can you give me details on your fourplex? Like the bad numbers and how you made it work? Pros/Cons? Regrets?

I am curious if people are not going to buy houses as quickly with the interest rate rising. Prices of property are definitely high, but I feel like they could go down a little bit in the next year or so since the market was so hot during pandemic. It has to slow down at some point, bringing the numbers down. That being said, I do agree that we shouldn't wait for a deal to happen and getting a cash flowing property is ideal!

 Thanks Carl for your support!

 When I asked my realtor about the numbers, this is a "round-about" of what he quoted, so its not fixed at this time. Definitely will not buy until my appraisal and inspection! I was able to walk through 2 properties at this time. The inspection is scheduled for next week.

I Googled the area and it is expected at 11% vacancy that I am aware of. Should I buy this property, I plan on keeping all funds made by this property for any future funding and repairs needed.

Each unit has their own separate electric and water, so the tenant pays for their own utilities.

I appreciate your input Drew!

 Thank you Alicia for putting it in this way for me. It really puts things in perspective. It isn't a bad deal at all but I was nervous about long term of barely making the ends meet long term when I move out and I do end up with some income, but would eventually need some repairs, vacancy fees, etc long term. Ultimately little to no cash flow in the future. Thinking ahead, I think in the end I would need 5 years to see if possibly rent can rise enough to make it worth it to keep or will need to sell but at least the equity it brings would be wonderful.

Hey Brian! Sounds like you are seasoned in the area. I'd love to go through some things with you in regards to investing in BR if you're available. If you don't mind, I'm shooting you a message soon!

 The area is within 10 minutes from a large university and in a 1-2 mile radius is the rough neighborhood. That being said, another very success shopping center was built within these ranges and an Ideal Market right where it meets the main store. This area has many areas of land that is in development for houses and some retail. Driving through to the 4unit in the neighborhood and there’s a sum of Hispanic and African American individuals being out. Not threatening but fairly in piece. My realtor has discussed seeing the changes in the area becoming less dangerous with time. I’m not getting this property, betting on it to appreciate quickly considering everything but it would definitely be a bonus! Predominately rental I believe.

 Wow that’s awesome! I would love any kind of help. The more I learn, the more I have a more clearer head. I’ll try to message you tomorrow to get some insight from you!