All Forum Posts by: Michael King

I'm getting close to going under contract for a 4 plex built in 1950. The seller gave me his inspection report from 4 years ago when he bought it, and the inspector suspected asbestos floor tiles in the entryway. I know the stuff is perfectly stable if left untouched, and if you want to remove it you better do it right...so that said, I'm thinking that IF it is asbestos, I'll leave it in place and carpet over the top of it. 

If it was you, would you run away?

The deal: 4 doors, 3 of the 4 have been updated, sale price $320K, rent total $3175. Almost 1% rule. There's room to raise to maybe $3300-$3400. All things considered I'm seeing around 15% ROI without a PM, and I think I'm going to tackle that part of it. Cash flow will be a little over $1000 a month. I'm putting down around $40K of my own hard earned, and a combination regular 30 year finance at 4.85% ($240K), and the remaining will be a revolving commercial line of credit at 5% that the same bank is giving me....NICE! Some deferred maintenance - a couple of cracks in the basement, no problem in my mind since they're vertical and don't seem to have shifted, and the AC units are older (up to 29 years old, believe it or not). I get it that lifespan is usually around the 10-12 year mark. Good school district. If I have my ABCs right, I'd say a C property in a B neighborhood? Haven't quite got the handle on those terms yet...but it's a good neighborhood I do believe. Anyway how does it sound? I'm terrified of buying an 'older' apartment building in a suburb I don't have anything else in.

Thoughts are always very well received, good bad ugly. This is such a great forum.

Mike

What's interesting is that about a month or so ago, before I saw any of this, I subscribed to his youtube channel and reached out with a finance question. He got back to me last week I think it was, offering guidance like he was conducting business as usual. Started seeing these threads about him and went ahhhh nope. 

Hello BPers,

I have a company supplied phone by my employer, and I do not want to give the number to tenants. I will not do it. So thinking about google voice to use on the same phone, or should I just get a $30 a month sim card from Cricket and use an old phone that's laying around? I've made a call or two to people with GV and I get the feeling that it's just a shady thing. Why I feel that way, maybe just a man's intuition. haha. TIA for any thoughts.

So many pearls of wisdom here! Thank you all!

@Anthony Wick Are you the John Wick of property management? Excellent contribution!

@Frank Chin Frank, what a valuable set of experiences right there! Thank you for taking so much time and effort to explain all those gems of wisdom, which I for one am going to put to use as soon as I start my PM venture. It's people like you that make forums so beneficial to people in search of knowledge. Man, if you were in St. Louis, I'd buy you lunch.

I'd call the title company and ask the same questions. But in essence, the lien holder will get paid first before anyone else in the transaction. I did my research several years ago when an underhanded contractor threatened me with a lien. 

@Alex Craig Awesome information there! I have cut and pasted all your questions for future reference as my build my own system on vetting, thank you!

I don't know about the credit score, but my best tenant has a bankruptcy from about the same time frame as yours. He's motivated to get out of the mess he got himself into.

Kenny thank you for the response! Yes all the accounts are in different LLCs. I wanted to segregate all my accounts for easier tracking...I'm thinking zelle may have a problem with that now.