All Forum Posts by: Ryan Fisher

Thanks to everyone for your comments. I guess this is a learning experience!

Good Evening, Sorry for the long post, but I have interesting situation.

We are under contract for a duplex property in Bradenton, FL as of 12/23/2020 with a closing date of 01/29/2021. During the inspection, multiple serious issues (roof, flooring, electrical, hot water heater, replacing knob and tube wiring) came to light. These were brought up to the seller during negotiations and he agreed in a contract addendum to fix them all prior to closing with proof. This appears to be happening per our agent.

There is a tenant in the upstairs unit (2/1) renting for $850/month on a month-to-month lease. (Market rent for this is about $1,200/month). The downstairs unit (3/1.5) was unrented and seller said it could go for about $1,150/month (fixed up market rent is about $1,500/month). Given that it was unrented, we were going to see what additional issues may need to be fixed outside of the things the seller is repairing and then rent for market rent.

However, I received notice yesterday that the Seller just wanted to let us know that he was looking to rent out the downstairs unit and we received an executed lease agreement today (starting 01/15/2021) that states that he rented it out for $1,125/month on a month-to-month contract. I spoke with my agent and he said that this is common and the seller is hedging his bets and if our sale does not go through, then he is not losing rental income and if it does go through, then we have some rental income during this time and can decide to raise rents or not renew their month-to-month lease.

Is this a common situation that you have heard about, for a seller to place a tenant in a unit he is selling 14 days prior to closing? With the current under market rents, the property is at a 3.9% COC return and with market rents, it is a 16.5% COC return. How would it be to go to the new tenant 1-2 months after they signed their lease and tell them that the rent is going up by about 30% or $375/month or their lease will not be renewed? I know that if I was the renter, I would be upset after having just moved in. (I am not sure he told them that the property is being sold.) The upstairs tenants were present during the inspection, so they know property is on the market, but their rent would also go up a little over 30% or $350/month. They were living downstairs and moved upstairs because they could not afford the cost, so they would likely leave.

Is there a good way to go about this or just give notice that the building is under new ownership and this is the rent if you want to stay and renew your lease?Thanks!

Question regarding Termite Bonds. The property that we have under contract has shown evidence of prior termite damage throughout. It was treated in 2017. The inspector stated that he did not see any current termites there. The Realtor mentioned getting a termite bond or having the seller transfer a termite bond to us as getting termite damage can be very costly. Has anyone had experience with termite bonds? I was researching and saw that the companies can come in and say that the damage is preexisting or caused by something else and not pay to remedy the issue.

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*This link comes directly from our calculators, based on information input by the member who posted.

Hi Bailey, My wife and I are in Colorado Springs and getting started in investing in SF/MF in the Orlando area. Nice to meet you!

Thanks so much, @Richie Thomas and @Matthew Ringer for your input, I appreciate it! I think you are right that it is just a bad deal and does not live up to the hype of the advertisement.

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*This link comes directly from our calculators, based on information input by the member who posted.

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Hi all, I am new to bigger pockets and analyzing deals. I saw this one online and have been running the calculations and it keeps coming up as a negative cash-on-cash return. Is this just a bad deal or am I running the numbers incorrectly? Is there any way this could be a good deal with a lower purchase price or other changes? Also, a possibly related question: The county assessor listed the property value at $299k so is the asking price of $460k way too high or is there a disconnect between assessor valuation and price? Thanks for any and all replies!

@Jeremy Norman The meetup sounds interesting. I will have to try to make it to one soon. As far as the student loans, I am going for Public Service Loan Forgiveness so I am making payments and hope to have the loan forgiven in 6 years. I have some others at 4-6.5% interest so I am trying to pay these off in order of interest rate.

@Chace Fraser Thanks for the reply. I am married and want to have kids soon. We just purchased a house last March and love it but not house-hackable in the way a townhouse or duplex would be.