All Forum Posts by: Nick Laverriere

Hey guys! I unfortunately won't be able to make this month because I am away for work. Hope to see all of you at the December meeting!

Jacob Szeto thanks for the advice! The deal did not work because it fell above the FHA threshold as a 3 unit and it could not be financed as a 4 unit. As for my second question I am just concerned that having a high debt to equity ratio as a result of the FHA loan would turn potential lenders away for future deals.

Ryan Murdock I appreciate the help! I think skepticism is always healthy. I didn't come on here to find cheerleaders. It may very well be tight with my house hacking it. When I move out it should be cash flowing nicely. The unit I am taking rents for $1000. She actually grew up in Bangor. I would love to meet and pick out it brain next time I am in that area!

Ryan Murdock yes, gross rents for 3 units is $5,125 (not including the $300 I'm going to charge my girlfriend to live in the owner occupied unit with me haha). I was surprised too. It was the the only one I have run the numbers on that makes sense. I can send you my spread sheet if you want. I used all actuals provided by the seller. Admittedly I have yet to verify them though.

Yeah I think was under the assumption that over leveraged was a function of debt and equity; not income. My mistake. I just didn't know if sellers would be weary of a high debt to equity ratio. The unit might need substantially more than a window but I like the idea of it being negotiable so that doesn't bother my anymore. Thanks for your help!

Thanks Neal Collins I appreciate the reply! I think that would be the way to go. Do you think it would be better to negotiate the asking price down or make the offer subject to the repairs?

Hello BP community! I currently own a 2 unit that is cash flowing $900 a month and I am ready to buy again. I found a large 4 unit building in Portland ME, a fast moving market with very little inventory. I was impressed with the numbers on this building and was curious as to why it had been on the market for over a month.  I learned today that one of the 1 bedroom units is not legal due to lack of egress and the property has some management issues due to an absentee owner.   The asking price is $550,000 and would be purchased with a low money down FHA loan. The property will have positive CF of just under $800 a month taking into account one unit for owner occupied. My questions for the BP community are: 1. How do you suggest I deal with the illegal unit? Is this a deal breaker? 2. Will I be over-leveraging myself, making it difficult to acquire future deals with seller financing?

Hello BP community! I'm so excited to be making my first post on here!   I found a large 4 unit building in Portland ME, a fast moving market with very little inventory. I was impressed with the numbers on this building and was curious as to why it had been on the market for over a month.  I learned today that one of the 1 bedroom units is not legal due to lack of egress and the property has some management issues due to an absentee owner.   The asking price is $550,000 and would be purchased with a low money down FHA loan. The property will have positive CF of just under $800 a month taking into account one unit for owner occupied. My questions for the BP community are: 1. How do you suggest I deal with the illegal unit? Is this a deal breaker? 2. Will I be over-leveraging myself, making it difficult to acquire future deals with seller financing?

Hello BP community! I'm so excited to be making my first post on here!  

I found a large 4 unit building in Portland ME, a fast moving market with very little inventory. I was impressed with the numbers on this building and was curious as to why it had been on the market for over a month.  I learned today that one of the 1 bedroom units is not legal due to lack of egress and the property has some management issues due to an absentee owner.  

My questions for the BP community are:

1. How do you suggest I deal with the illegal unit? Is this a deal breaker?

2. Will I be over-leveraging myself, making it difficult to acquire future deals with seller financing?

All of the numbers below are actual figures and the owner occupied unit previously rented for $1,000. Thank you in advance for the advice! I look forward to getting to the point in my career where I can give back!