Okay, so an update:
Things are a bit fluid at the moment and after the owner's initial termination form letter with a 30 day vacate deadline the other tenants (my brother included) may have decided to withhold rent until they can find a new place. Friday, the owner decided to extend the deadline to vacate beyond the end of April as long as rent is still being paid.
Not sure if the other tenants (including my brother) got the message though.
So the owner came looking for rent Saturday. My brother (2nd floor tenant) was out of town so he will have to deal with the owner when he gets back. Not sure about the third floor tenant. But I had my check ready because I wanted to take the opportunity to speak with him without any ill will.
After 2 seconds of small talk he immediately asked "why don't I team up with your brother and buy the place?". I mentioned I may have to go it alone if I were to purchase and that I would have to see if I could secure financing. Could you give me a couple of months? I got a sorta "yes" out of him but then he suggests that that I call his realtor. I haven't called his realtor yet because I am still not sure what I will be doing.
I asked a couple questions.
Is the property a legal 3 or 2 apartment dwelling? He admits that it is a legal 2 apartment duplex and not a triplex even though he is listing it as such. The main floor apartment which I'm living in now used to be an office once upon a time he tells me. This would explain why there is an office next door in the attached building.
Do you have a mortgage on the building still? Did you pay it off? He says that recently he had to refinance so he could raise around $100,000 to help pay for his sick wife's medical bills. The owner himself is having issues with his kidneys. So with failing health, his needing to take care of his wife, medical bills, and already at retirement age, the owner has decided he needs to sell.
So all weekend, I've been reading anything I can on the biggerpockets website starting with the beginner's guide. And all I've learned so far is that there is a WHOLE lot of stuff I need to learn in a VERY short amount of time. There isn't enough time!
I need to determine if I can buy this place, update it, and get it ready for higher paying renters to either get me to break even or generate positive cash flow all without falling into a money-pit trap.
or
do I focus on multi-family purchase someplace else.
or
do I try to get financing for a nearby coop apartment to just live in.
I'm going to need a lot of guidance only because the owner is not giving me enough time to analyze the place properly. Already his realtor is trying to set up an appointment to come see the property this Sunday. My dad, who is still the official 1st floor renter in the owner's eyes, is trying to delay the appointment. The owner still doesn't know that my dad and mom has recently moved to Florida for retirement.
Need some guidance here folks.
If I give up on this place without doing a good investigation of it I will be losing out on being literally on the inside track or the ground floor of.....not a wonderful opportunity but an opportunity. Wouldn't it be easier to start investing on the same property I've been living in for the past 25 years? Wouldn't it be easier to negotiate with someone I'm familiar with?So much to think about and not enough time.
will update this thread again soon.
