All Forum Posts by: Michael Kundrat

 Thanks my man! I think if it comes to market and sits for 60, 90+ days (especially since the building has two active leases and mine isnt up until 2/1/23 when its bitter cold in salt lake) those are other obstacles that make it tough to sell - and probably make it better for me if we see that there isnt much real action at the prices expected.

I also may ask them what they will consider if once it goes to market and they get offers below asking, what will they do? Because if they do entertain lower prices ($700K-ish?) I would want to know about that to factor out numbers more.

 LOL agreed - and its not even close to $4K, its like $3,200 haha. Thanks -

Is there anything that I could be missing or not thinking about related to potential upside/development of the surrounding area that could continue to drive prices higher for 'speculating' on the building? thanks!

 Totally agree that the numbers dont check out at all - lots of risk and potential for spend as the building continues to age and problems arise.

What are your thoughts on living in a building with lead pipes, asbestos, not professional updates/repairs, awkward floorplan/layout, can be a noisy street with old single pane windows, and a lot of other things that go with a 100+ year old house, even if its close to a desirable area?

If its owner occupied so I am living here and collecting some rent while paying down mortgage (granted in the first many years it will be paying down the interest mostly and not the principal now) does this change your view or thought process. I wouldnt mind living here as primary residence if the deal made sense.

 Appreciate your insight - I agree that if it was a investor buying it that it would be a terrible negative return based on current rents.

I would for the time being buy it and live in it for a period of time (not sure how long, but the plan would be to move out and rent it out and buy another place too - although I am not sure how much rent in my unit, $1,900, could even be increased to make more).

What are the benefits/risks of having this as a duplex that I live in and then collect a little bit of rent from the upstairs tenant to offset the mortgage and build equity over time - while potentially adding value to the property in-case I want to 1031 it to a 4 plex.

I imagine that when they list the property, it could sit a while, especially since my lease is through January, and the type of buyer of this would be someone who would owner-occupy and they wouldnt want to be in the upstairs unit.

Even for me to owner-occupy, the condition of the property is a bit sketchy, but the location is not bad, not great, but not terrible. On a highly visible street.

Thanks for the input! I am less interested in house-hacking a SFH to live in with tenants. I am early 30s, WFH, and dont know many people in SLC so it would be renting to randos lol.

What would you need for the CMA?

 I like that idea of getting to the true intentions of the sale and what he is looking to get out of it.

I approached him mid-year about seller-financing the house to me but he shared that he doesnt want to take a tax hit and prefers to 1031. Not sure if he has the deals lined up yet (mentioned two houses, not one larger multi-family).

Thanks for your response - very helpful to consider!

My landlord knows that I am interested in his property and he is trying to 1031 his duplex into more houses closer to an area to where he has other properties close by. I have no rental property experience but want to get in the game. I have the income and money to support a down payment and mortgage - could do FHA or 10-20% down.

111 year old duplex I live in - 2/1 layout, upstairs downstairs. Although the second 'bedroom' on the first floor is an awkward layout because its an add-on feature. Good location, house has many issues (not cared for great, asbestos in basement with HVAC, lead pipes most likely, poor electrical system, among many other things) but also has HVAC for AC/heating.

Right now I pay $1,900 downstairs for the larger unit with backyard/hot tub/garden/parking space, and my upstairs neighbor pays $1,250. Internet/cable/water is included in rent. My lease goes into early 2023.

Details are sketchy but he offered it to me this week a $949,000 saying he expects it to go a bit higher if he goes to market. With me there would be no cost of sale on his end with RE commission cost. There is no cash flow with this deal anywhere near this price. Also these multifamily properties have been sitting on the market locally for a long time now with these high prices - the buyers are so siloed since these houses arent really move-in ready and most home buyers want single family. But he told me he wants to get top dollar.

How would you professionals in your wisdom and lessons learned over the years approach due diligence here to build a case for a counter-offer to stick with? I am wondering if its worth getting an inspection of the outside and my unit to get a professionals idea of what's going on with the property. Comparables data isnt too easy for me to get and they dont transact too much from what I have seen. I imagine that this is not an attractive property to too many investors and would need work done on a $1M property - I believe an inspection would uncover a lot of risk, especially on foundation issues being on a fault line too (cracks in walls and all over).

The easy approach I am thinking would be to just share with him that I think we are too far apart in pricing and see if he opens up the door to negotiations.

There are some value add opportunities to improve the property if it was to be sold in the future, and to increase rent upstairs the bathroom could be redone, dishwasher put upstairs, and perhaps a washer-dryer stand up unit (instead of sharing our machines).

Let me know what other questions I can answer - trying to think through this methodically because I like the deal but the price is ridiculous - this would sell well between $700-800 I believe. Maybe below 700 depending on what is going on with the house.

Mostly wondering the best way to get phone numbers - I am thinking ill go right to the source of the data providers and see.

I am excited to start my business.

 Thanks so much for the input - I will take into consideration all of those.

I am also curious how to get contact information when you identify a property of interest (and the for rent sign isnt up front). Do the RE data services provide those from like a core logic, does everyone have to skip trace or get creative in other ways.

I just wonder if there is a path of least resistance/one single source for a quick list of units that includes contact information to drill down on?

Thanks!!

Am I looking at going about this the wrong way to prospect to multi-family owners?

Am I wrong to pursue prospecting this way?