All Forum Posts by: James M.

Sorry for the delay in response. My BP app was acting up and wouldn't open on my phone. At this point i'm simply at a stand still just waiting to see if the seller come back. We are only 50k apart and while i feel there is very good up side on this property over the long haul, I am not chasing a property in a market which is becoming more and more bearish every day. We are coming into the slowest quarter for home sales, and possibly heading into a market pull back, so the pressure is on the seller. 

@Ray Johnson, there aren't many current comps. The property which sold for 930 was actually off market, and way off of the other comps. The comps definitely support the asking price, but I whether they sell now or wait, the value is going to be coming down in the next couple of months, so I am not paying market. 

@Morgan Wallace Do you normally ask for tax returns from sellers? This is only my second property, but maybe i'll ask. 

To all those voters that wanted rent control.. enjoy your enormous rent increases and your crapping living conditions. Damn commys in California.

Thanks for the reply, Eddie. I’ve attached a couple of photos and while these aren’t the exact photos of the subject property nor the exact comps, they are very similar style. 

The first photo is a similar style to the subject property. There is a 3 car garage in the rear which has plenty of room to pull in and out of. The only access to the units is from the front stair case. 

Hey BPers, I’ve got another question for you all. I’ve been working through educating myself more and more on how to use comps to determine FMV and ARV, and I think from face value i understand comparing all the bones of comps such as bed rooms, size, year, condition, garages, location, etc etc. My subject property is a top/bottom duplex where the garage is behind the building which I believe is less desirable. Furthermore the way you have to enter the units via a stair case in front is also less desirable than some of the comps. While my subject property on paper has all the same basic features as some comps, like I said I think the comps are more desirable in the way the garages are placed, and the entrance to the units. So how do I go about puttting a value on this type of thing? Thanks guys!

Thanks for the reply Jay Hinrichs . Sounds like for now I am going to have to wait them out.

I wanted to pick some of your brains to see if you could think of a way to get a creative and make a deal work!
This property will be a buy and hold which I will owner occupy. The area is getting a major regentrifiction in the next 6 years so I feel very strongly about this area.
Duplex has been on the market for 190 days. Price has already come down 100k.
Asking 1,150,000 Offer: 1,000,000. Counter: 1,100,000 (seller says they won’t even bug the tenants for under 1,100,00)
I don’t want to give in to quick as this property has been sitting on the market for a while and given our markets, I’d think it will put pressure on the seller.
My counter was 1,000,000 until I look at the property and then might consider increasing offer. I included a detailed explanation of a close by comp which sold off market in February for 930 with a detailed explanation including data why this unit isn’t worth the 1.1 right now.
If the seller won’t back off the 1.1, I’ve consider trying to structure a deal at 1.05 with 100k seller financing over 5 or 6 years which with interest payments will give them the 1.1 that they want.
Any thoughts?

Wow! So many great responses and this is exactly what I need. Thank you so much to everyone for sharing your experience and tips! I greatly appreciate it!

Hello BPers! Thank you to all of you guys with experience who share your knowledge on a daily basis!

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I currently have an offer in on a duplex in a coastal community and the duplex is a top/bottom duplex. The top unit is 3/2 and bottom 2/2. I am wondering how many of you have had problems with noice from the top unit down to the lower. The unit was built in 1980, if that has any relevance. About 50% of the units in the area are top/bottom units. I will be aiming to achieve a rent at the upper part of the market by remodeling.

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My questions for you:

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A. Has a top/bottom unit stopped tenants from renting from you?

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B. Is it common that the noise cause a problem for the bottom unit?

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C. Would you buy another top/bottom unit? Why or why not?

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D. Any other advice?

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Thank you!!

You are building a business... are you trying to tell me that a ceo of a company wouldn’t have some sort of understanding of each Position? Try to do a remodel with 0 knowledge of how things need to be done. You won’t know if work is done correctly, if the quality of work is done well, if you are over paying and the list goes on. You have do do everything once, so you know how it is supposed to be done. You don’t have to be an expert.

Where do you guys meet? I’m in south Orange County, but might be interested in making the trek.