All Forum Posts by: Nathan Hall

@Wes Blackwell I think you're undervaluing "lower-classed" properties because you're assuming that they are all the same hassle/risk across the board, nationally.

That hasn't been my experience. I'm sure your system works. Mine seems to also, based on the "unrealistic"rules that you mentioned, and with the understanding that I do my best to treat tenants well and have few issues in return.

I think there is probably an inherent difference in expectations of profit gained where, based on investment experiences and geography.

@Christopher Liffner

Here's the good news. From your post, you have the right mentality, introspection, and humor to thrive in this game, imo.

Here's the potentially bad news. I haven't had to deal with where you're at but I'd imagine that, whatever the violation, unless the inspector just tells you, you're wasting money trying to fix it now. Don't throw up drywall; you'll just have to tear it out. As others have said, the inspector is probably coming in.

Now more good news: This is exactly what you actually should want. Figure out what the issues are, then find sometime to pull permits and do the work. With with that person to do some of the stuff to their liking to save money. I don't think there is a magic bullet solution here but from what I've read, I think/hope this is one of those character building scenarios that you profit from the experience of in the future, vice getting shut down permanently now. You can do it bro. You've got the "stuff."

PS I'll probably be dealing with similar in the near future on a property (with permits, but possibly historical) so when I come on here losing my mind, do me a favor and talk me down.

Best of luck!

@Angelique A. It's only a 10k property because that's how your thinking of it. What did it sell for? When you bought it, what was its value in your mind?

@Charlie Moore unless you're again listening versus reading, I'd recommend just listening to the bigger pockets podcast for a bit. It's free and fill of good info. And it's entertaining. I wish they'd get updated on Google play though, they fell off the map about a year ago with updates and I don't care to juggle multiple podcast venues.

@Jim K. Total aside, but does anyone else thing laughing emojis should be a thing on this site?

@Kwaku Farkye I'm going to take a different tack, here. I like the way you think. If I can get a duplex down the road on my VA loan and just sleep there and get my mail delivered, and still hang out with my family it go to work the rest of the time, that might be worth it. Good thinking!

@Adam L. I didn't read all the answers but I'd look up the 1% and 2% rules. Given 100% cash purchasing, there is no way I would go in at asking with this price and property performance.

Offer to close quickly, not use an agent, etc., something to let them know you are serious but at that rent rate I'd offer something much lower, in the 95-100k territory, if I was paying all cash. It reduces your risk of a volatile market but it also is an opportunity cost.

@Charlie Moore @everyoneelse

Am I the only one that realizes that this person is a troll?

Don't feed the trolls. They thrive on attention. If you want this sort of nonsensical confrontationalism to go away, you have to ignore it, like a toddler throwing a particularly cringe-worthy tantrum.

I'm contracted on the following property and looking for people's thoughts:

-4-unit residential with a four car garage and two car workshop/bay.

- one unit is fully rehabbed and rented for $750 a month.

- one unit is rehabbed but needs bathroom, kitchen, floors, appliances, doors, trim, and paint done. Electrical, plumbing, and mechanicals are all brand new. Maybe a month to get rent ready.

- two units are down to the studs, junction boxes and some wiring/outlets done (owner is a licensed electrician), need a couple of walls removed, nothing blatantly tricky going on. Just needs the right skilled trades to come in and do their things. Inspections performed on everything. Already metered separately (we won't pay any utilities except for common areas/garages).

- roof is brand new.

- 3 units are 1 bd/1 ba, 1 unit is 2/1.

- rents will be 800, 800, 900 for remaining units.

- garages are in good shape and will rent for $100 a month each for self storage.

-estimating the two bay as a $300 a month workshop, until we turn it into an efficiency for $500-600 a month (it's studded out already with plenty of space).

-there is a separate brick facility on the premises currently used for storage, considering making that a coin-op laundry at some point.

-common area of building needs rehab also but is budgeted for below.

Purchase price is $110,000. Rehab was estimated cost multiple methods and we were comfortable at $90,000. Bank agreed, offered us 15% down ($30,000), 5.25% loan APR, amatorized over 20 years, adjustable after 5.

First commercial loan for us but seems like a winner to me. Hoping those with more experience with this field can steer me straight if I missed something. Thank you for reading!

@Nathan Asher Robson

What's your market? In my experience it can be totally worthwhile.

We bought a 2 bd/1 BA SFH last November for 35.5k and did zero repairs other than changing the locks, though the inspection did find a crack in the foundation that would eventually need fixing and would cost around $5-8k. Rented it for $900 a month less than a week later and still have the tenants with no issues. Zillow (I know, not the most reliable) currently estimates its value at $41.5k, while my bank's home value monitoring service puts it at $129k somehow.