All Forum Posts by: Rod Smith

thanks @Jason Fraser . I was going to listen to it today. Maybe I should have listened to it first....lol

Good morning All,

I have a couple offers pending on multi-family properties and I wanted some advice. If I can land these properties, I am thinking about including water and sewer in the rent. I have seen properties marketed in this fashion and wanted to know how I set it up and how can I control the usage. I think this is enticing to renters, but how do I keep my costs down.

Has anyone done this before? Single or multi-family.

@Sylvia B. - Well things have not worked themselves out as of yet.

Since originally posting this topic I had a chance to meet with the owner of the 2 houses and found out I did not have all accurate information. He was willing to sell 3 houses as follows:

1. 3 br 1ba - asking $20k firm - rents for $425/mo
2. 3 br 1 1/2ba - asking $20k firm - rents for $450/mo
3. 3 br 1 1/2ba - asking $30k firm - rents for $525/mo (Higher price because it is in a different town with higher property values)

So as you can see, the cashflow is not what I thought it would be.

So I made and offer on the $40,000 TH that I mentioned with no HOA. @Michael Siekerka made some valid points about the HOA not being a reason to be afraid, but I think the one thing I forgot to mention was that the parking lot is in very bad shape with several large potholes. This will not be maintained by he city and if there are a bunch of uncooperative owners we will be in big trouble when the parking lot becomes unnavigable, which will be soon. I have concern that with a parking lot that bad prospective future tenants will not want to live there if it means tearing up their cars!

So, I offered them $32k and they countered at full price. So since they did not want to negotiate AT ALL, I felt that was a sign that I needed to follow my heart and stay away from the dilapidated parking lot. However, I would have loved to own in that community and hopefully had a chance to pick up other properties their eventually. Mainly because I liked the location and lay-out of the houses.

The other 3 properties are still available because he is not actively seeking to sell them. He is giving the opportunity to buy to a few select people.

@Randy Duncan take a look at this also. Does it still make since with the reduced rents?

Thanks @Bill Gulley . It is a steal of a deal and I probably won't try to resell. For the price I am looking at cashflow!

@Jesse Sumner thank you for your response. Let me clarify:

The property I am attempting to acquire is encroaching on someone else. Therefore the owner of the land has put up a fence. I am ok with the fence location, just don't want future headaches.

Hello Everyone,

I need some assistance. I am in the process of making an offer on a property and the listing agent has informed me that there is an issue with the property line. The property is approx. 3 ft. over the property line. She said the owner of the land lives in a house behind the subject property and knew about it for years but did not do anything about it because the previous owner was a family member.

Since the house was foreclosed on, the owner of the land on which the subject property encroaches has erected a fence that is basically up against the side of the house, preventing you from walking around back of the house on one the right side.

Would you proceed with this purchase and if so, what are my options to get a clean title and avoid future issues if I resale the property?

Thank you in advance for your assistance!

@Wayne Brooks

I don't know the area that well, but I have a friend that works nearby and will be doing a driveby this evening. I agree with you, and figured it was worth getting under contract first then do my due diligence.

Hello fellow BP members,

I just made an offer on a 4-unit residential property in SC and I want to know if I am looking at this deal the right way?

Here are the stats:

Purchase price: $24,000

Estimated Rehab costs: $35-$40,000

Potential rent: $400-$450/unit (conservative) $550 (max)

Financing:

1. Use a hard money lender to buy and rehab and refinance after 6 mos or a yr. (see concern below)

Here are my concerns:

The building is in a community with several other quads all built at the same time. The others are either owned by people that are not repairing them and another investment company has bought 3 or 4 buildings for future renovation but the realtor is not sure when they are going to begin rehab. I checked the tax records and it appears they bought one of the buildings as far back as 2011 and it has been boarded up since then. With that in mind, I am worried that once I rehab my building I will be unable to obtain an ARV that I need to refinance out of my hard money loan.

Any suggestions on how to approach this deal?

Hello @Shaine Cobb

I just ran across your post and wanted to say hello. I currently own a rental property in Hephzibah and am looking to buy more in the CSRA. It is a little difficult because I currently live in Northern Virginia. I am originally from the area and come back often, but I still miss out on the great deals.

Like Mark, I was previously in the business. I did not own 52 houses, but I did have 5 that I parted with in a divorce. So I am in the process of rebuilding bigger and better.

If you run across any deals that you think I may be interested in, I would love to talk to you about them. Please add me to your network.

Thanks

The property is only $100K and yes, I would be comfortable with the current rent. I just mentioned the potential increased rent in optimism....lol. And No, I do not think these type of opportunities come along every other week. I have been looking for multi-family properties in my market for the past few months and there are very few that come up at this price. In actuality, I see duplexes for around the same price and more!