All Forum Posts by: Peter Pezzano

My tenants called me the other day saying they had maggots on their ceiling. I found out these types of maggots come in from grocery stores and are found in wheat and grain products. I have to have an exterminator treat the property. Can I charge the tenants for the cost of treatment or do I have to take on this cost?

I am currently negotiating a deal for a 3 family in my desired area. The property hits all my numbers almost perfectly. The road block I'm running into is the seller does not want to deliver the property vacant at closing. He says he is selling because he is old and does not want to deal with the burdens of owning the property anymore, however, the property is turn key and the only burden I can see from this property is the tenants. I can see these tenants becoming a problem down the road when I want to raise rent to market rate. I don't want to inherit these tenants for reasons I am already familiar with. What would be the best way to create a win win for both parties in this situation?

@Andrew Johnson Thanks for your response. I agree with the combative back and forth with the seller agents, I am one myself. I should have been more clear and explained that I'm looking for off market properties only, where the seller was not represented by an agent yet. The common response I run into most is that "Zillow says my home is worth x amount." I figured if I were to show lower comps, it would change the mind. Thanks again and I agree with you and like the fed move!

I was curious if anyone was bringing low comps with them or sending them to the seller when making their offer to justify? Especially if the offer is much lower than expectations. Also open to peoples opinions on whether or not you think it's a good idea or not.

Thanks!

We are looking at a 3 family in a extremely hot market and area outside of Boston (Malden) within 2 minutes to transit and lots of restaurants and shops. The 3 family is being offered to us off market at 700K. Porjected rents, when units are renovated would bring in potentially 6900 per month. The renovations include, a new roof, new plumbing, kitchens, paint, putting up a few walls. The issue I have run into is, we don't qualify for a 203K loan to do the renovations to bring the units to market rent. We are first time home buyers. If we rent the units as is, we should be able to bring in $5400, which would cover our mortgage and then a little extra. We have estimated about a 100K worth of renovations for the items listed above. We don't have the 100K to renovate, should we proceed with renting the units as is and then budget for renovations? Or should we seek the renovation money through a partnership? 

Any and all advice is much appreciated.

@Jon Sidoti I'm getting ready to do one myself. I also love in Quincy and is a market I think has some potential with all the new development. I'm sending mine out in Medford and Somerville, but was interested in what kind of response you got down here.

@Jon Sidoti Hi Jon, was just curious after a month of direct mailing what has the response been like so far?

@Account Closed not typically, but because I know about it as an agent, I would have to disclose..But more over, this property could be developed into many more units than are already there. Any new development in this area must under go an environmental study.

I have reached a seller who I know is under water in his mortgage payments, I have arranged to meet him tomorrow. What is the best way to break it to him that I know he is being foreclosed on? Also, how can I found out how much he is under water for? I believe if I can put the property under agreement for 1.2 I could sell the contract for 1.3..But if I could get it for less than I obviously would I'm just not sure on how to arrive at that number without knowing how much he is in debt for.

Thank you,

@Christopher Phillips Thanks for the information it is helpful. The specific contamination with this property is that there used to be a junk yard in the neighborhood year ago, and when it rained, it used to wash all the pollutants into the neighboring lots. So hoping that the contamination is not as bad as the oil tank but I have a feeling it could be worse as well.