Hello BP nation,
@Brandon Turner, @Aaron Montague, @J Scott
I wanted to take the time to update a few of you who have given me very good advice in the past, there are others whose names did not come up with the @symbol ( George Carnicle, Swat Khan, Matthew Edmond,Tuna Hirun). And anyone else out there that may read this post.
This was my first time getting this far going through with an accepted offer on a 3 family. The numbers were $2000 per month with a cash flow of $486 after all other expenses. This was in a C neighborhood. The building was recently rehabbed 1Fl and 2nd FL, 3FL had some normal wear and tear on it. All units rented and separate utilities although 2 of them had electric heat. Newer plumbing, that you could see ( on a slab) and Electric with breakers, although some of the wiring at the panels were outside the walls. Bldg is 100 yrs old at least, most here in NYS are that age.
The main problem was the flat roof was at the end of it's life and would have needed replacement in 1-3 yrs. Per the inspector who also has rental property. There also was a lot of deferred maintenance ceilings sagging one in the living space, etc. And much more I'm sure you get the idea. Also our down payment would have been 90% of savings for this purchase and did not believe it was a good idea to start off like this. BTW the asking price was 119,900K and we were all in a 109,000K. Down payment would have been 25% plus closing cost 30yrs at 4.5%. So the funding was very good.
We did not ask for any money back mainly because as we were going along we also were told that the area could be rough by 1 of the tenants I also checked with the local police and they said that area gets "busy". especially the street where the building is.
Anyway not to have you all fall asleep, I,m still out here looking. It's been a tough go at it. I'm going to look at a 2 family that has good numbers in a much nicer area, however my wife does not like the Idea of a 2 family ( in my surrounding areas it's mostly 2 units) and while I long ago convinced here 3 units and up ( what we can afford ) is the way to go.
Part of me feels like I would be settling if I go for 2 families and other part feels like if I don't I won't ever get this investing off the ground. I do NOT want to be one of the ones that never buy anything.
I do see this as a positive as I have learned more things to ask for if some items need repair or replacing. I have even more respect for all of you that do this as it is not easy!
As a matter of fact the current house I'm living in (single fam) I asked for 10k back for a new roof they seller counter with 7.5k and I told them a deal at 8.5k. Roof cost to replace 3.5k! 10yrs ago.
In the long run we saved more than the cost of the inspection I'm sure.
Well thanks for reading and thanks for responding in the past. Any advise is always appreciated.
