All Forum Posts by: Nate Baumann

That was what I thought too, but the banker told me otherwise. Very specifically he told me that it would have to be changed into my name. He said that it could trigger the due on sale clause, but he has never seen it happen. That is why I am floating this question out to other 4-plex owners or bankers to see what they would say! Thanks

Thank you ahead of time for your help!

I studied carefully and created an LLC before buying our first rentals. We were able to buy out a retiring landlord and bought two 5-plexes and one 4-plex. He owner financed them for 3 years. We are about a year and a half in. Property values have jumped in the past year which puts me in a great place for equity. I went ahead and set up a meeting with my bank to look at rolling out the 4-plex. My banker was very excited (of course) to do the residential loan, but told me I had to remove it from my LLC and move it into my personal name.

Is it true that we can't have a residential loan in the name of an LLC?

In a few months I am going to be refinancing an older (1940's) multi-family property. This was purchased as an owner financed deal and was not appraised when I bought it.

I am wondering if anyone has some tips on what are the obvious things appraisers look for. This place has older wiring and older plumbing. There is not much that I can do about those things at this point. However, I want to make sure to have as many things in order as I can. All your pointers would be greatly appreciated!

Thank you for the responses. I will go back and gather more information !

I am looking at mixed use commercial property that is for sale. It has several homes, shop space and a small office building. The gross lease for all of the spaces comes out to $5500 per month and our local cap rate on this type of property is 8%. Is there a way to back calculate an offer based on these numbers? I know that the asking price is high, but am not sure how to come up with a reasonable offer. Thanks ahead of time!

Thank you for both of your insights!

I recently bought my first set of apts! 13 one bedroom units that were basically all full at closing. I left them under PM for two months and have now taken that over personally. I finally connected with my last renter to get my lease signed. He was very forthright and admitted to getting a cat 1 month before I bought the building. He also commented that he smoked occasionally outside. There was no smell of smoke at all in his apt with all the windows and doors closed. He then tells me that he uses vapor nicotine daily in the apt. Both of these are prohibited in my lease agreement. Is the vapor nicotine something to worry about? I am thinking that at this point I need to encourage him to find a new place to take his cat and his habit to live. To me dealing with inherited tenants is a bit more challenging than with tenants who signed the lease before moving in. The last PM was very laid back. Thanks for the feedback ahead of time!

Thank you for the thoughts. The asbestos is all encapsulated or in the attic, siding, etc.  It sounds like you are suggesting that I simply disclose that it exists. I just did not want to get people too concerned. The existing tenants claim that they were not even informed of the possibility of lead based paint. Since I am new I am just not sure how detailed to get. 

Hi, my name is Nate and I am new to BP and new to rental real estate. I flipped a few homes and have decided to try a longer term approach. I am close to closing on my first deal involving 3 multi-family homes that were built in the 1920's and total 13 apartments. The homes are safe and clean, but have antique railings (wide gaps), some knob and tube wiring, and asbestos based building materials.

I am in the midst of writing my lease agreement and would like people's opinion on the benefits or necessity of adding the following disclosure statement to the Indemnity Section:

"HISTORIC HOME DISCLOSURE - The Owners disclose that the Property was built before modern building codes existed with building practices and materials that were common at the time. The Tenant(s) agrees that they will indemnify, defend and hold the Owner harmless for any damage or injury resulting from building practices or materials that were used in the construction of this Property."

Thank you in advance for your thoughts!