All Forum Posts by: Dave Kent

Good afternoon BP community,

I am looking at purchasing a 5 unit apartment - house. Only 2 of the 5 tenets have a lease in place the remaining 3 do not have leases and have been long term tenants. The unit is in Virginia. I have some reservations as the original owner passed away and left the units to his sons. They have a long term veteran living in one of the units (without a lease and have been paying his electric and oil bill). I don't want to kick anyone out but also don't want to continue paying the electric and oil. What are your thoughts community? 

Thank you,
Dave

I would take with a few other local banks. I would also ask the current bank if that would change if you supply them with a tax return showing the length of time owned and the income generated in that amount of time. It is important to ensure when doing your tax return that you subtract the months of the year that you did not own the property.

I wouldn't shy away from a STR. I would ensure I had some additional cash in reserves to help offset expenses if bookings declined.

Just a few questions I would ask myself/consider as well: 

-how easy would it be to switch from short to long term rental if the market demand changed

-how many attractions does the STR have? Is it a beach town? What type of draw does the STR have? Is it in an area that has a large influx during the summer but the remainder of the year it is difficult to rent?

-what does the local ordnance think about STR rentals

I have been working with small local banks. I was quoted today at 70/30. I would reach out to small local banks

Semper Fi Nick. I know its probably to far but wanted to share regardless. We have some great meetup groups out here in Winchester, VA. I don't know your plans after you transition out of the Corps but if you end up out this way we have a few good met up groups. Two in Winchester and one in Martinsburg, WV.

Semper Fi and all the best to you in transitioning from the Corps and success in real estate. 

In my humble opinion I think providing leads on other potential properties will lessen the blow. He is comfortable and has been for 10 years. Unfortunately, that now must change. I would provide a written letter with a move out date and let him know that contractors have been scheduled so the move out date is firm. Hopefully being a good individual and trying to help him will not go unnoticed.  

hope that helps and best of luck 

I am evaluating a 7 lot mobile home park and am interested in everyones thoughts. I am concerned that the location of the mobile home park is declining making long term tenets challenging. I live about an hour and a half from the MHB so am not 100% familiar with the area. In my research phase I have found that the overall population has declined by 11% since 2010. What would your next thoughts or questions be?

Facts about the property: 

-Asking price is $140,000

-Recently had all mobile homes removed. So the site currently consist of 7 lots that all have separate water and electric. Cable is also ran to each property as it was an existing MHB up until about 2 years ago. It has sat empty for approximately 2 years and has been on the market since Feb of this year. They have reduced the price by $40,000 over the last few months from $180,000 to the current listing of $140,000

-It is on city water and sewer

-located one road over from the Potomac river

-all lots are approved by the county to continue to be used for mobile homes and the seller informed me they have documentation stating this. I will verify if I decide to purchase. I have spoken to a few mobile home sellers in the area and can secure the mobile homes to place on the property and sell back to the new mobile home park residents. 

I have thought about making some mock post to put on social media and other housing platforms to better gauge the demand. Does anybody have any other thoughts on how to determine if the market will justify these 7 new lots in a very small community? Any other thoughts people feel are crucial to not overlook. 

Thank you in advance.

I would ask myself what is it that makes me nervous? Countless problems with the economy but each one can be countered with a reason why it will be off minimal impact. 

Id be more concerned with ensuring that the deal can stand on its on. If it can't and you are looking for long term appreciation I would ensure I had additional cash reserves to handle the volatility in todays market.

I was out driving for dollars and saw a sign posted in front of a duplex. I called and toured the property that would have been a nice candidate for a BRRR project. She informed me that she inherited a large portfolio from her uncle. I unfortunately was not quick enough on the draw and missed out on the duplex.

I called the phone number again today and spoke with the lady to see if she wanted to sell anything else (in the initial meeting she said she wanted to sell approximately two each year). She said she does have a duplex and old 7 room hotel that she wants to sell currently. Im still running numbers on the duplex and hotel that she wants to sell. I don't know if the one she wants to sell right now is something I can tackle. 

In the interim between seeing the original duplex and the phone call today she said she sold one more unit that she owned. 

So my questions is: Does anyone have any creative ideas to ensure I have first crack at future properties? 

Additional back story: The owner and her husband do all maintenance/repairs on the properties they own. The husband is tired and in need of some serious help. They also have been getting some additional pressure from the city about the state of the properties.

Thoughts?