All Forum Posts by: Michael Krassos

Hello BP community,

I am in process to purchase a short-sale property to be used as my primary residence and am looking into financing options. Property is in need of some repair including a visible water leak (I suspect from a balcony not sealed correctly) through the kitchen ceiling, new furnace and A/C, wall repairs, insulation, and other cosmetic repairs.

My mortgage broker told me I have no chance of a bank lending on a conventional mortgage with major issues like visible water leaks. He explained the appraiser will take pictures and raise red flags. FYI I am buying the house at a discount to account for the required repairs.

I am open to a 203k loan but want to decide on my terms, not because my broker wants me to close twice (once on the 203k, then again to refinance to eliminate the Mortgage Insurance because I will put less than 20% down).

Is he pulling my leg? If not also appreciate any words of wisdom on doing a 203k loan.

Hi all, I am a newbie investor and really appreciate your advice and guidance.

How do I confirm if a property is on city or has a well for water supply? If on well, what are the considerations toward a purchase if the property hasn't been vacated for months/years? What are costs for inspection, remediation of possible issues, and maintenance that should be considered? Note the property in question also has a water softener system. Oh, and the town has no knowledge of a well for the property, is this supposed to be permitted? If so am I in for big trouble?

Does anyone have a set of rules you might include in (or with) a lease agreement? I want to clearly specifiy when to call me and for what reasons for maintenance, repairs, etc.

This would be for a NJ property if that makes a difference.

Hello @David Thomas, hope you are well. What coverage amount are you basing a quote of 1000 to 1200 on? In my experience the TNT insurance broker is suggesting about $200 per Sq foot in NJ to rebuild, resulting in 1300 a 1800 per typical 2 family in NNJ. Thoughts, am I being taken for a ride?

Thank you @J Scott and @Wayne Brooks. Does this make it a bad deal?

Sorry, the cap rate and CoC I provided was at a purchase price of $340,000.

Stay away I imagine, but seriously I'm analyzing a deal and want to make sure I understand what is happening.

It's a 2-family to buy and hold for $400,000, will put down 25%, so mortgage at $300,000.
Income is $45,600/Year
Expenses is $24,680(Taxes, Insurance, Utilities, reserves for vacancies and repair)
So NOI is $20,920.

After Mortgage is paid I have a seamingly attractive Cash Flow of $355, that's $177.45 per door!!

After factoring in my Cost to Purchase of $4838....

My cap rate is at 6.15% (I consider okay for NJ and condition of property), and my CoC is 4.74%!

What's is happening? Why is the CoC lower than my Cap Rate? Is this a deal or not?

Hello Alok, I am a little north of you in Bergen County. I am a new investor still looking for my first Buy and Hold deal. I suggest you chat with @Darren Sager who can can find on this site. He is helping me, an investor of his own and willing to work with other investors. FYI I also work in iT in NYC. Let me know if you ever want to meet up and talk RE shop. Feel free to reach out t me directly.

Hi @Dawn Anastasi

He asked her and she responded she cannot pay and is looking for a second job. Regardless, not sure I'm too keen to inherit tenants that have not gone through my screening process and capable of this.

Hi all, need some advice from you seasoned investors and anybody with legal knowledge/background.

I have a good opportunity for a 2-family home. The owner however reported that since he raised the rent on both units a few months back, one of the tenants has stopped paying rent. He's unsure if she just cannot afford the new payment or if the tenant is taking advantage of her because she knows he is selling and likely wont go through the eviction process.

He offered to me to begin the eviction process but doesn't want to wait for the process to complete to close with me. He suggested he would turn the eviction process over to me. I have been using this issue as leverage and believe I can buy well below market value.

Questions: Should I buy with the eviction in process? Is it possible for me to assume the eviction in New Jersey?