All Forum Posts by: Nicole B.

There are a lot of factors to take into something like this. When you are looking at a SFR you only have one renter to manage as apposed to 4 separate ones. But with multi-family properties if you lose a tenant you still usually have the other 75% occupied whereas a SFR if you lose a tenant, you lost 100% of your income. There are pros and cons to either and it depends on your preferences.

I suggest you do a lot of research before you decide to take the plunge on any real estate venture.  You need to determine your criteria (which it seems like you and your friend don't agree on) and go from there.  Everyone has their own needs and desires;  what's most important is that you learn what works best for you and then become an expert at it. 

I suggest you do not go into partnership with this friends if your criteria are not aligned.

Learn, learn and do some more learning! That's the best advice I can possibly give.  Once you do that, you will have a better idea of how to determine if you actually have a good deal or not.

Good luck!

I suggest you see a lawyer to get the proper agreement written.  I wouldn't mess around with something as serious as this.  It could potentially save you a ton of money down the road if something goes array. 

There could be a leak somewhere. I would get a plumber in to see what's going on

One other thing. Where did you get the NOI info from? Did you analyze this yourself? or were these numbers given to you by the owner? I would never trust solely their numbers as they could fudge/pad certain crucial numbers in their favor. Be aware of potential property tax raises after sale, utilities, deferred repairs, etc. Do a smell test on the numbers yourself.

I am quite new to this whole thing, but from what I learned in the past is that if you take on a loan for a property that's worth less than the loan amount banks will not approve the loan.  Or they may sometimes ask you to pay the difference in prices.  I would run far away from this one if he doesn't re-negotiate. 

Why was there such a difference in the sales price and appraisal? Was that sale price comparable to other similar homes in the area? Are there major structural problems with the house that brought the value down?

The rent could be low due to "deals" the owner has with the tenants.  I suggest you ask for the lease agreements to make sure the owner wasn't giving them all good deals below the market rate.  

Investors sometimes do that because they may want to keep good tenants around and are willing to take a hit on the lower rent.  You don't want to end up raising the rents and then having everyone bail on you.  That can be quite expensive for you. So keep that in mind when you do your analysis. 

@Julia Fergo it is always a good idea to run the numbers before you buy a property.  Have you read any books on real estate investing? Have you learned some of the basic calculations you can use to help determine what is a good deal or not? 

I suggest you learn as much as you can so you don't end up making huge mistakes with your hard earned money.  The best advice I have heard on here was learn from other people's mistakes, it's a heck of a lot cheaper that way!

Hi @Munira Hassan

Have you done any research on real estate investing? I highly suggest you read and learn before you jump into this business.  Once you have read some books and/or blogs on this site, from there you will have a better idea of what type of investments that you want to get into.  There are tons of ways to invest in real estate and it's my advice that you pick one type and become an expert at it. 

Thank you @Christopher Telles! Really appreciate your advice!

@Account Closed I got my walking boot off Tuesday and am slowly building the muscles on my foot.   When's the next meetup? I think I might join now that I can drive!