All Forum Posts by: Raj Vajir

@Steve O, the market expense is a bit on the higher end as its a small town and not many handy people around.  She is asking me to give her a number, but I don't want to make my offer sound real low ball offer if she's expecting to sell at 80k/unit and dont' want to turn her off completely.

@Steve V, I agree that I need to give her some time, as she's just started thinking about selling so might have a huge figure in her head.  She is going to sell as condo units, we didn't discuss as how and who would manage those, good point to use.  I was unaware of the restriction on financing an individual condo unit, i'll check that out.  

I figured I'd approach her and plant the seed and let her know I'm interested.  I'll sit with her again and see if she can show me the numbers and explain to her the points made so far.  She's not looking to get rich or anything, so hopefully she'll come around.  

Hello BP friends,

I need some help on how to proceed in making an offer for an apartment complex.

I spoke to the lady (53) looking to sorta retire.  I approached her about selling and she said she is in the process of upgrading the units to sell them off individually at $80K/unit.  She has an entire new plot right on the same property to build same amount of units (1.4 acres total) and owns the adjacent lot with a hall (1.6 acres)., not included in this offer.  She wants to sell but I have a feeling she won't go for $35-$40K/unit price I had in mind.  She is divorced and does all the work herself with her boyfriend.  She's not in distress, just considering.

12 Units (Townhouses - 900sqft, 2bd)

Rents: $700 (can be raised up to 900), very few apts. in the town.

100K gross/year

Fully rented

City Appraisal at $630K

Willing to do seller finance as well.

I haven't asked for any numbers yet, but following the 50% rule, The numbers I come up with is 450K-550K to make some cash flow.

$500k offer

$100k down

$400k @ 5% ($20k/yr)

Leaves me about $25-$30k/year if I run it myself.  

Of course these are numbers on assumptions (50% rule + mortgage)

Please help me check my numbers to see if it even makes sense to proceed.

Raj

I have a tenant thats been with me for 9 years and is a very good tenant.  She is a professional worker and have sent me a linkedin request to add them.  Is this a good idea?  do I ignore, or respond.  For obvious reason, I'm not sure if i want her to know my work history and/or my investing interests that will be visible to her if i add her based on the groups and forms I participate.  Whats a polite way to decline or does it make sense to add her.

So Sub 2 being that I would take over their loan payment.  How does that exactly work?  Do we need to inform bank of the change and if not, will the bank not find out when I renew insurance and they get a copy with my name on it and potentially call the loan due in full amount?  In this scenario, basically the seller would be turning over the deed and assuming I will be making the payment on a loan under their name correct?  Definitely makes sense for me to do it on my end, but I'd think seller would be nervous to do it.  I am not aware of the terms on the loans yet.  I made a mistake earlier, the manufactured home was built in 2004, so I take it the loan has to be 10 yrs the most unless they refi'd it, which to me it seems like, because the amount seems so high still.

Hello,

I have been working with the seller's agent and he is indicating that they are highly motivated to sell.  The sellers moved to another city and need to  get this off their hands.  I need help trying to figure out what other options I have instead of increasing the offer.

Asking: Initially $125 > $109 current

Offer: $90k

Manufacture home, 4/2 built in 2010 on 1/2 acre, small town with no rentals homes available.

Rent: $800-$1000

Tax Appraisal: $102k

According to seller's Agent - Owner Owes: ~ $90K, and needs to pay him still.  Does it make sense to bump to $95k, what they're willing to sell so they don't have to write any checks, which would put me at close to $100k after closing. 

Options for me: have bank convert loan to my name if rates are good and avoid paying appraisal and any other costs I can bypass.  

I can't think of any solutions to resolve seller's issue without me having to put more money in.  I don't know how manufactured homes fair over time, so I feel a little risk.

Darin,

Looks like you completely out the fixup.  Have you gotten it rented or flipped?  Im sure Nina has a much better view of her neighboring house.  Thats a lot of work you went through for a first flip.  I bet you learned a TON of things from this project.  

I'm looking into a house on MLS in Texas that is currently owned by an out of state investor who is looking to sell, and its been rented since 2007, unsure if its continuous. Still in initial stages of investigation, but is it generally a good idea to buy a rental property with pool. Heard there's a huge liability on the owner if something happens. is there a way to close it up or just rent with lease stating the renter has to maintain it? Thank you in Advance.

I have about $155K in equity (diff. between appraised value and purchase price).  70% of 155 = $108K in equity loan.   My mortgage is 50k currently.  Rent is at $1550 (10 yr tenant) so I am barely just making cash flow at the moment so that was my hesitation.  I will be raising rent next year to another $100/month.  You guys make sense that my 1st property needs to be in cash flow status before pulling money out since I may not be able to cover both the equity mortgage + the existing mortgage.  Then buying a 2nd will have to cover the loan on it, so that must also be cash flowing positive.  I'll have to sit down and figure the numbers and if I can stay positive flow on both, then maybe just pulling out just what i need like you said Jon.

I will probably be doing equity loan with Quicken Loan and they said that they do not report the new appraised value to the appraisal district, so property tax won't be increased on my current property (that was my big concern).  

I've actually had this happen twice with two different agents.  First one was the seller's agent and the second one was found based on another property they had listed that i had been considering.  I thought maybe my offer was too low and they felt embarrassed to present the offer to the sellers.  Thank you everyone for providing feedback.  I just felt like the rule of putting 70%-80% below asking was hard to put in front of agents.  I'll have to follow up again and keep my hunt going.  

I have listened to several podcasts that recommend using equity to purchase more rental properties.  I have about $100k+ in equity.  Whats the best approach in utilizing the money to purchase several properties.  Does it make sense to get equity loan on the entire amount or is it possible to get $25K at a time as I purchase one property and then next or is that not possible?  Sorry for the confusing question.