All Forum Posts by: Patrick Parry

205k purchase 

1550 Rent 

-1091 mtg (80% LTV at 7% with 3200 for the rate buy down getting a 4k credit from seller to cover this. Lender works with a lot of investors so keeps his rates competitive)

-80 insurance

-70 property taxes(super low in AL)

-150 vacancy and maintnance(all though occupied and built in 2023)

-----------------------------------------------------

$159 cash flow nothing great but a good area in general that is getting more developed.  Decent schools and minimal crime.  

Not sure about Connecticut.  But In California it should have been on the Seller Property Questionnaire page 3 line 16 - Neighborhood noise and nuisances.  It has multiple explanations of what would qualify and odors is one of them.  If Connecticut has similar contracts it should have been disclosed by the seller.  From the conversation you had with your Realtor sounds CT likely does.  However, the seller can claim they did not ever notice the issue so my advice is talk to your other neighbors to see if they ever heard of your sellers complaining about the issue.  That could very well be your smoking gun and grounds for a lawsuit. Also make sure it is something that should have been covered in the seller disclosures.  

California law is very buyer protective and Connecticut very well could be the same.  You may have an argument where the neighbors smoke makes your home less desirable etc.  You would need to most likely consult a real estate attorney but I have heard of buyers being compensated for much less of a non disclosure issue.  Call me bias but I cannot stand the smell and I would be pretty upset as well in your shoes.  

I am not a lawyer and not licensed to practice real estate Connecticut.  This is not legal advice please consult the appropriate professional. Good luck.   

Wow lot of people coming at you for this post and your struggles.  I think this is a more than fair post.  I also do not think you are trying to start a new career finding motivated sellers some other people are really trying to get you to work.  All though knowing what you have to spend would be helpful.  I would imagine you have at least 50k-100k to utilize.  You mention rents not keeping with prices.  Rents will catch up in nearly any place you buy.  There is just not enough homes available. Some experts say as many as 5.5 million homes short.  We can say 3 million to be conservative.  You will see upward pressure on rents.  People who cannot buy will continue to be forced to rent.  Especially for the entry level homes.  I think you just need to possibly look a little more east and maybe deal with some snow.  Plenty of new homes that can cash flow with 20% down at a 7% interest rate.  Instead of buying 2-4 units buy 2 units in a BTR community.  I am in Orange County and nothing cash flows here without at least 50% down.  So out of state is the only play for me.  Happy to connect on what I have found out there.  States I like Alabama, Tennessee, Georgia and Indiana. With some interest and more research to do in the Cleveland and Kansas City areas.  I also like north Florida but it is getting a bit too expensive.  

This sounds great. I have been looking at high single for SFR BTR. Sent a connection request love to see what you have

I just recently grabbed a low price sfr LTR.  I looked in Indianapolis area and NW Indiana.  Areas near Atlanta and a handful of areas in Alabama.  I settled on grabbing one in Odenville AL about 30 minutes outside of Birmingham through a BTR company.  205k built 2023 already rented at 1500 with pro forma at 1600 plus.  Cash flowing with 20% down.  I will be grabbing another in Indiana area soon as cash flow there is a bit better.  I am just focusing on linear markets with growth near a major city that have at least decently rated schools and low crime rate.  B class areas.  Let me know if you want any more details happy to share- spent about a month or so analyzing areas.  

@John Jones Nothing in those areas will provide positive cash flow without putting a large down payment.  35% plus.  

@Andrew Pappas 

https://www.biggerpockets.com/renewsblog/2014/01/17/dodd-frank-law-changes-seller-financing-investors/

Closing cost will run you 6-7% on average.  I am including commissions in this.  

@Rob Yadrick sounds like you would be more the partner with the cash.  I would definitely look into partnering up with somebody with experience.  70 units that need rehab will be pricey.  

All first deals are most likely going to be out of your league.  This is a difficult deal even for a an experienced investor.  You are missing too many pieces in this puzzle and are relying on multiple professionals.  Sounds like you do not have any established relationships with any of these professionals either.  Unless I read this incorrectly.  

@Arthur Kraamwinkel Your Realtor should be handling that. They should cross reference items their POF (proof of funds for the down payment and some extra for closing cost. Hopefully they still have extra after that). They should look at the prequal that should have their credit score. Make sure it is not only a reputable lender but also an experienced LO. I will have a conversation with the lender to get a solid understanding of this buyer. I always google the loan officer to see if I can find some reviews on them. I also look into the Realtors past sales and reviews. Good to know who you are working with. FYI if the Realtor is newer or has not sold many homes I definitely use that to my advantage. They will most likely be less aggressive.

How I would counter and then ask for a per diem for every day they close late seeing that you have the holding cost.  So if your holding cost with everything PITIA(Principle Interes Taxes Insurance Association Dues) is 1100 a month put in the counter 1100/30... $37 per diem for every day behind the agreed upon COE(Close of Escrow).  If they decide to walk after that they would have probably bailed after you opened escrow.  It is always good to test a buyer somewhat before you accept their offer.  

Good luck if they walked then It may have happened anyway during the escrow.  Also, I am a Realtor in California.  Things are different state to state however I would imagine these items are not.