All Forum Posts by: Michael Greer

Its a very nice street and great visibility, but no street parking.

If there were street parking in front of the door, it's much more likely that the impulse to "stop in," but the parking lot is behind the building so a coffee shop-like business doesnt really fit.

The old tenant was an accountant who's 3 year lease expired and that's probably the best kind of fit for the location. 

Thanks for the responses and questions. It really helps.

Going back and forth still. 

He respects how I dont want to come into this at a loss.

He's getting calls on the vacant spot and we are still talking.

I'll update when things change.

Hello,

A fellow property owner let me know that he has decided to sell. 

He has offered to owner finance it to me with a $50k down payment, 7% rate for 20 years.

I'm looking to buy a property like this to be my retirement fund when I get older and I don't need the potential cash flow now.

The building has been cared for, has 4 small apartments on the second floor, two medium storefront commercial spaces and located in a very nice city.

One commercial space tenant just moved out last month.

As it stands right now, it will cash flow negative -$8500 annually.

If I include depreciation, still negative -$2400. 

The apartment rents are long term tenants and 25% lower than comps.

The owner is elderly, has owned the building for over 40 years and is confidence that the vacant space will rent soon.

History verifies several months of vacancy, but usually it's rented.

I am concerned and don't want to put myself in a tough spot.

I am very comfortable with residential spaces and own several. Everyone needs somewhere to live.

Not so much with the commercial spaces.

Any advice on taking on a property like this with a monthly loss right at the beginning?

Or if I should even do it?

Thank you!

Hello,

I'm have a 4 bedroom house for rent and several groups have come through to view the property.

3 non-related adults want to move in together.

If I chose them, how should I structure collecting the rent?

I use a software to collect rent for my other properties and have traditional families in them (Father- mom- kids) so I get one payment.

Do I ask the 3 adults to designate one person to pay one payment?

I dont want to get into a situation where 2 people say they paid their portion and the last guy doesn't.

This would leave me with 2 tenants that feel as though they honored their part and I'm out 1/3 of the rent.

I want to keep it simple and have no intent of chasing around anyone.

How should I set it up

Thanks in advance.

Mike

Thank you!

I was also hoping that the commissioner position would somehow qualify for required real estate work.

I figured I was wrong. 

Thank you for the response.

Hello,

To start off, I contacted my accountant and he said he did not think I would qualify.

I'd like an opinion here because I'm not sure I agree. 

I could be wrong.

I work a W2 job for a city as a comissioner in the building department for the typical 2000 hours a year.

I also have an LLC home inspection business that I can legally show 978 hours worth of work that matches my income from my W2.

I also purchase my first rental property in 2021 that I can show about 100 hours worth of work at.

Since then, I purchased a BRRRR property in 2022 that I've done all the improvements on myself.

Can I qualify for the Real Estate Professional tax status?

Should I even try?

If this is the wrong forum, I'm sorry.

Thanks in advance.

Hello,

A seller has 2 small cash flowing properties for sale.

One is $80k, the other $30k.

Will a lender even lend on a small $30k investment property?

Will a lender combine these for a portfolio loan?

I would ask them directly, but it's Sunday.

Is there another option?

Thanks in advance.

6 plex for sale. 

Asked a property owner if they would consider seller financing. They sent the following terms:

7.5% interest rate, 7 years, 25% up front.

I'm looking to lock in a cheap rate on an income producing property. Looks like he wants his money now.

Aside from the 5% cheaper down payment, I think I'd get better terms at the bank.

Am I missing something?

The only reason I ask is because this seemed so far out there that maybe I'm not where I thought I was.