All Forum Posts by: Andrew M.

the area is not great but i dont think i would feel uncomfortbale worrking there...

i am kinda thinking that this neighborhood is a little to run down though. i feel like even i fixed up a house here no onee wants a nice house in the middle of a bunch of run down ones. im gonna havee to go back and take more notice of the condition of the rest of the neighborhood

the place definately cash flows. because its so cheap for a 4 unit its not really hard to create positive cash flow.

i thought it was always 5 units to become a commercial property so ill definately have to look into that.

also my grandmother who is a re agent said that in some states you cant sign contracts until your 21. that seems kind of illegal or unconstitutional or something so i wanted to find out if thats true. by the way im in PA

i see the term a bunch and i have no clue what it means

so i went to look at the house today and i might have found a really amazing deal. but theres also some downside to it

the place is a 4 plex in a low income neighborhood

the street the units are on is really shady... and the houses need some serious painting, drywall touch up , clean up and junk removal. they look pretty junky but seem to be fully functional in terms of electricity hvac plumbing, and structure. the exception is that one unit is still on fused based electricity so it needs to be replaced.

that being said i see some really good things in this property.

1) out of the four units 3 have been rented out for 5 or more years. and apparently is usaully easy to find tennants in the area

2) one of the tenants is a career construction worker who said he would be interested in working with me to fix the place up ... maybe on some type of reduced rent agreement

3) this same tennant suggested that the seller is much more motivated then he seems and said he really thinks the guy would take 10,000 less than his 65000 offer

4) even in its current condition this place seems like it will cashflow pretty easily

i think this property could be an amazing oppertunity but it will also be alot of work... especially for my first property. in some ways the idea of my first property being a fixer upper really scares me

so now i have some more questions-

1) whats an average inspection price ( assumer 4 2/1 units )

2) whats an average inspection cost

3) any advice

unfortunately i dont really have enough numbers to make any net numbers but unless theres something im missing i cant see any way this thing wont cashflow with tennants paying all utilities. hopefully when i meet him on sunday and see the prroperty ill be able to get all this info

also the seller said on the original listing that he is offering seller financing so the option is definately there.

the other reason im liking seller financing is A) i have 0 credit b)im not really gonna be able to account where my downpayment is coming from since a familiy member is helping me come up with it.

i cant really see any banks giving me any offers on loans...

im also from chester county ( chesterbrook) but im currently at school in pittsburgh. haha i didnt respond to that first post because i assumed you were trying to sell something. that link has some really interesting information. i might have to look into some stuff down there

well first i wanted to say that im going to visit my first property this weekend and without the help of this forum i probably wouldnt even be thinking about looking at actual properties. espcially thanks to ryan for anwering about 10000 of my questions.

so the property is a 4 plex with 3 units already rented out. its gai is aprox 16800 ... and the property is only 65000. tennants all pay all utils. i thought it sounded to good but when the seller explained it seemed to make sense. he selling all his real estate to buy his 2nd bar which he says he enjoys running more and hes pretty motivated sell this property to get some money available for that. also apparetly the property is pretty ugly but i see that as a good thing because hopefully with some cosmetic changes i can add some value.

so my question is what are the ups and downs to ownerfinancing. my other question is if seller financing could show anything about the sellers intentions, would a seller have any reason to or to not seller finance a problem property or money pit.. like would he benefit from me foreclosing or is there any reason some one wouldnt seller finance a problem property.

ahha hopefully my queestions make sense but im not sure they do. thanks for everyones help!!

ahha i think both of you might have just saved me a whole lot of trouble. thanks for the advice

one of my biggst fears going into landlording is that i could encounter problems because of my age. im 18 although i really look a year or two younger. i am thinking that some tennants could be offended or resent the fact that someone significantly younger than them owns their house. im hoping that if i handle myself in an apropriate manner it wont be an issue but honestly i could easily see the problem coming up. so i guess im just looking to see what other people think about my situation

i am trying to figure out what my options are gonna be on my first property. i have no credit that im aware of. i just got a credit card that im going to just barely use so i can try to gain some credit. are there gonna be any traditional loans available to me? what if i have someone else with better credit co-sign the loan? . any help or opinions would be apreciated.