All Forum Posts by: Michael D'Alessandro

Hello BP community! Hope everyone is doing well and had a great holiday weekend! 

My partner and I found a pretty solid deal on the MLS that we want to pursue, but we now have some reservations. I have my RE license and have been speaking with the seller's agent. So, there is a current tenant who has NOT been paying rent for a few months now. The seller hasn't started any eviction process, but his agent just said that the tenant needs to go. The seller has not had any recent communication with the tenant since they have basically gone dark. In addition, they have stopped caring for the lawn and we are now concerned if they also stopped caring for the interior as well.

This is completely new to us, so I wanted to get some insight from experienced investors who belong to the top online community! It stinks because it would be a very good deal for us from a numbers standpoint. I just would not know where to start, to be honest. Like, I understand the tenant could be potentially "bought out" but the seller has not given us really any insightful information other than that they need "to go". I sent several detailed questions to the listing agent, but all of the responses from the seller have been short and unhelpful. Ultimately, I don't know where to go from here considering the seller has not communicated with his tenant. 

Any help would be greatly appreciated. Thank you so much in advance!!

Best,

Mike

Thank you both so much for your help!

Thank you for all of your responses! This all great and valuable information!!!

Good Morning BP Community, I hope everyone is doing well!

I just came across a FSBO manufactured home on Zillow that was built in 1998 and is listed for $65k. I have been perusing through previous threads that briefly covered this topic. I wanted to get some additional thoughts from those who have much more knowledge/experience in this space. From what I gathered, manufactured homes will generally depreciate. This home was recently renovated (Brand new kitchen and Bathroom, Flooring, Painting, ETC) and has 2 beds and 1 bath.

I am currently a renter, so my initial thoughts were to potentially occupy for one year by qualifying for a low down payment and then rent out once the year is over. What are some thoughts on this? Can Financing be an issue?

Also, the description did mention that there is a lot fee, but did not specify the amount. Does this mean that someone owns the land? 

Thank you so much in advance and any other information would be greatly appreciated!

Best,

@Bryan Blankenship Thanks for the reply! I have been considering that as an option as well as I also was shocked by how much cheaper the taxes are in the Midwest. My main goal/objective is certainly Cash Flow. Ultimately, I would like to build a solid portfolio that offsets my expenses. 

Hello BP Community, I hope everyone is doing well and staying safe! 

I wanted to get some of your feedback/suggestions on my struggles when analyzing deals in my area. I became a PRO Member this morning and have analyzing some deals as practice. I live in the suburbs of Philadelphia, PA and I have my RE License so I was able to set my girlfriend and myself up on listing alerts for single family homes in our area. 

Granted these listings are on the MLS, so I understand that you won't consistently or easily find slam dunks. However, when running the numbers, what I am realizing is that the TAXES are diminishing the cash flow and in turn are reducing the Cash on Cash Returns. To provide some context, I came across a listing below $130k and estimated rents of $1,300-$1,400. At first glance, I thought this was be a solid deal, but after accounting for the standard expenses, the Cash on Cash Return was roughly 6% and the taxes are almost $5k/yr. I realize I could always make a lower offer to enhance the returns. Can anyone relate?

Sorry for the long winded post. Any feedback, advice, or suggestions would be greatly appreciated! Maybe I just need some encouragement and patience LOL. Thank you in advance!!!

Best,

Mike

@Jeff White thanks so much, this is awesome information! This was my assumption and hope. Do you think credit unions or smaller local banks would be more aligned with what I’m looking for?

@Ratna E. Thanks so much for the info! I read similar things as well regarding Freddie vs Fannie and their income limits. I know there are other unique options out there as well that require specific requirements. I am definitely going to connect with some local lenders. Thanks again!

@Justin Kane thanks for the info! I am going to reach out to some local lenders to learn more. My main curiosity is learning the minimum downpayment for duplexes, triplexes, and quadplexes for owner occupied conventional financing. I am sure this can vary from lender to lender with their specific programs and portfolio loans. Was just curious to know if anyone had prior examples with needing a specific downpayment or not.

Thanks Bob! Yes, I've been in mortgage industry for 2 years and I never knew why BP doesn't talk about the hefty fees associated with FHA loans. After all of the fees associated with closing, much more cash is needed than just the 3.5% down.

But that was my thinking with trying to learn more information about the conventional loan options. I wouldn't be a first time homebuyer, so I wanted to understand my options with electing to go with a conventional product and occupying one of the units.