All Forum Posts by: Mayank S.

My tenant just shared the pictures with my PM about a crack on the wall which has increased over the past four days. My PM in turn has forwarded me the pictures and asking me what action would I prefer them to take. Attached are the pictures. I don't have much of a clue really what should my next step be? I see these type of cracks at my house too and never concerned me. May be it's nothing...However would appreciate to hear from seasoned landlords/PMs/REIs on my next step. 

Any advise is appreciated.

@Dustin Ruhl Thanks for your input. I have had good luck rehabbing the property to a good standard through my TK provider and putting on rent without much delay. IM you and happy to connect with you.  

@Greg McGuire

1. It depends. If you plan to house hack and get FHA on your multi unit property, you may qualify for another loan in that year depending on your credit history/income/DTI etc. Assuming loan will be for another rental property investment purposes that means higher down payment requirement 20-25%. You may check the requirements with your lender.

2. Are you thinking of LLC for asset protection purposes? Normally lenders don't lend on LLC mortgage has to be on your name. There's plenty of discussion on LLC question which you can search here on BP. Basically if you are financing, transferring title to llc can trigger due on sale clause.

@Greg McGuire Multi family is a great way to get started. Does MF have 5 or more units, in that case it would come under commercial but if you plan to buy having 4 or less unit, you should qualify for residential loans. Now FHA is the way to go if downpayment is your issue, you can house hack and live for a year and get some experience managing the property by being onsite. If that's not viable, you may qualify for 20% DP however based on what I know Fannie loans require atleast 25% down payments. Shop around and see if any community/local bank is willing to finance on less dp.

@Sylvia Pomazak sorry to hear about your ordeal. This is unfortunate. Howeverthanks for sharing your story and making others aware of sharks lurking in this space. we all make mistakes and learn from it, events like this makes us wise. Hopefully we all will learn from this. In the end I will say, the nature of this business is team work and somewhere we all have to trust someone to get started. Always "trust but verify" is the way to go.

Thanks you all for your insight and response. I checked with my home inspection guy who is going to provide me the estimated age of those components during reinspection. 

I am recently under contract to buy my first multi family and going through due diligence phase. After contacting with my insurance agent to include this one in my existing policy which has few more single family properties and a blanket liability insurance, the insurance carrier (Indiana farmers mutual insurance) would need the last upgraded time or age for plumbing/roof/wiring to include it with other property insurance or to issue a separate policy. Now the problem is property is through MLS and seller also being an investor have no clue about their upgrades. I have got the inspection done and all three components (rof/wiring/plumbing) are in decent condition and functional but no idea when was it upgraded. Inspector can only guess estimate the age.

Seller has addressed few items related to plumbing (leaks), roof (replacing some shingles) and I have reinspection scheduled for tomorrow. Now my question is what and how can I provide the estimated age or last upgrade time of those components. In case of any incident related to roof or something, can insurance company deny the claim stating the age stated was not correct or something? Need some opinions and Thanks in advance for your response.

@David Rollings sorry I didn't make it clear in my post, it is for buy and hold and not for wholesaling when i meant "under contract".

All Indy local investors,

I recently put a duplex under contract in Old Southside neighborhood near downtown Indy. I wanted to hear the opinion on other local investors how this area is coming up. It has proximity to Bates Hendrick and Fountain square that are huge in demand.

Checked this article on Indy star: 

http://www.indystar.com/story/news/2016/06/17/what-s-holding-back-old-southside/85253430/

buy first multi family and pay off mortgage on one SF.