All Forum Posts by: Michael Kundrat

thanks! i agree - curious how to price something out to factor in CapEx potentially needed and then rent/my mortgage for what a fair price/good price would be good to offer if this lingers on the market.

Any thoughts or advice here to underwrite a deal in this way to at least have a thought of a price to pay?

 thanks, andy! and i appreciate your perspective since you lived in the aves - helpful to know you know the area. This house is near liberty park... for those of you who know liberty park now hhaha.

Would love some recommendations of agents to work with too - feel free to DM? thanks!

An update to the property - spoke with the landlords when they came by today to do some yardwork. Shared with them that while I like the property and its charm,etc., that they deal was too much for what I would like to pay and if they can get $1M then they should get it - they both said well... we dont think it will go for that much. So they sounded like they dont expect it to sell for what they are going to post it at ($949K).

My upstairs neighbor is locked into a lease for close to a year, so even if rent could be increased, it cant be increased until the lease is up (landlord suggested a $500 increase in rent if you spend ~$10K in upgrades to the bathroom to get upstairs rent to $1,700).

The numbers still dont work out too well and increasing rent that much is a bit of a long shot.

He said that the 1031 deal is pretty well lined up, but who knows. Im not sure who this deal would work for since it has to be an owner-occupied deal to make it work for any return and both units are in leases (mine in January).

It makes me feel like they want me to put together a deal and propose a offer to them -

 LOL thanks! No dice, just asbestos, lead, and fault line issues with the homeless problem in the park across the street - last week I had to throw away a needle someone left next to my garbage can.

 BTW - what makes you think its a great deal? How would you structure the deal - loan wise and rent wise and value add?

 Thanks! I agree and would, but the landlord has mentioned wanting to get top dollar. So my thinking is that they wont want to budge until seeing what happens when its on market since the last year+ has been an expensive market with sales going for more than asking (not as much in multi-family, but the comps hes thought of are all single family).

He has had the 900K number on his mind since the beginning of the year and wants top dollar - you're thought is very logical and could lead to a quicker and less friction in a sale (especially to a known interested buyer like me) but they are trying to get a big sale when the house isnt in great condition (exterior as well) - maybe its because I moved here from California where I was living before salt lake haha!

 thanks for the input! Very much appreciated, and your are correct - the house does have lead paint as well! haha

Btw - this duplex is confusing because on the county assessors website it is listed as a single family residence, but the building has two meters for electricity. Although the current landlord covers water (not separately metered), cable/internet, and trash.

So I am not sure if this is a a true duplex or a SFR even though there are two meters. Not sure how to totally validate this.

Interested that no one is too focused on having me have an inspector look at the building to see what is up to counter-offer - what if I am totally wrong about the condition of the property? Although I have lived here for 18+ months.

 Is that like a basement apartment that people often rent out as well?

Yes, I would treat this likely as owner-occupied house hacking then - although not sure if I would do likt 5% down or more to reduce the mortgage, like do a conventional 20%.

 Great idea, never thought about 're-zoning' (not sure if thats the term) the property to create two condos to sell separately. But trying to command even more for the property after that would be really hard just based on the layout and upstairs/downstairs relationship.

The property is not as large as victorian houses that I would think of being chopped up into a large MFU building. Downstairs unit I am in is like close to 1200 sq. ft. (because of an addition room added on) and the upstairs is smaller maybe closer to 1,000 sq. ft. so in total I approximate the house at 2,200 sq. ft. it sits on a decent yard for a city at like .10 acre. Fenced around the property.