All Forum Posts by: Mike Obrien

Hello All,

I recently became notified of a property for sale in my organization that I believe can be a great opportunity for Industrial outdoor storage investors with a potential at a 10 cap.

The property is a truck terminal yard in Detroit, MI +/- 9 acres and the owner wants to do a long term sale leaseback (7 year term + (4) 5 - year extension options) with NNN rents.

Possible deal terms could be $4.2M purchase price with the seller paying $35,000/month NNN with 3% escalations.

Quote from @Henry T.:

Isn't Florida notorious for sinking houses? I think the whole state is limestone. There's probably maps that could tell you if you're in a "prone to sinking" area.

 Yes, that is what the contractor said.

Quote from @Doug Smith:

I'm in the Tampa Bay area as well. If you're going to remediate a sink hole, you should remediate it right. I'm not sure if you recall the sink hole in Seffner (East of Tampa) where a sink hole swallowed a guy in bed. You can certainly shop the repair, but make sure you get the engineering paperwork. This is not going to be cheap. Does your homeowner's insurance include sink hole coverage?

The contractor noted this is a not a sink hole issue but rather raveling soils that are moving the foundation. Not sure of the difference to be honest. I will check my insurance policy and see what's covered.

Quote from @Chris Seveney:

@Mike Obrien

How big is the home - $55k seems like an awful lot of $

 The home is 4 bedrooms, 3 bath and 2,400 SF

Quote from @Caleb Brown:

That is pretty crazy to have it shift that much. Is the soil known in your area to move that much in a short time or was the cement done poorly? I like bringing engineers out since then bring companies out to bid on the work to recommend. 

 I am calling a structural engineer to come out tomorrow. I am hoping this foundation expert is wrong in his assessment.

Hello,

I purchased an investment property in Largo, Florida about two years ago.

My tenant called me a few days ago and noted she heard a cracking sound and the tile's in the entry way started to lift.

I got a foundation contractor to come out to the house and he noted I have raveling soils as well as many other houses in my area and that my foundation is slightly compromised. He gave me the following options:

OPTION 1: $20,000 - Rip up the floor and pour chemical grout in that one area and retile the floor. He noted I may have issues in other areas of the house later on and need to do the same process.

OPTION 2: $55,000 - Lift the foundation of the house and do a new foundation around the perimeter of the whole parcel. He noted this is likely the best long term option as I should have no other issues moving forward.

I am confused and a little shocked as the inspection report from two years ago came back as structurally sound. The only comment from the inspector was one of the rooms had a floor that was slightly slanted but he said that is normal as the house was built in 1954 and that's normal in older houses.

Any advice would be greatly appreciated.

Single Family property worth $600k. We owe about $430K on the loan, mortgage company said only option is to refinance to get him off the loan.

Thoughts?

Hello Everyone,

Looking for advice/options to buyout my business partner without having to refinance the mortgage.

We have already agreed on terms but we have a fixed rate 30 year mortgage at 3.5%. If I have to refinance to 7.5% the property would likely no longer cash flow and my mortgage would increase substantially.

Any thoughts on different creative ways to make this work?

Hello,

I am interested in purchasing a short term rental in Hollywood Beach Florida. What are the short term rental restrictions and is it hard to get a permit for these rentals? I would appreciate any feedback/insight.

Thank you,

@Michael Keane Thank you for contributing to the discussion. If you don't mind me asking how much are the 30 day short term rentals compared to normal rents in the area? I have heard short terms rentals can cash flow 2-3x than a traditional.