All Forum Posts by: Russ Draper

Currently using a PM that has been doing a good job.

• Owner pay all utilities
• Calculating 25% down, estimating $500/mo expenses and 1mo vacancy with 4% mortgage/note is 73% ROI
• Comes with additional lot behind for parking

Looking for quick close, no immediate repairs needed.

See my other ads for combination deal.

You might want to look into Mobile homes.  There aren't many in MA, but they are probably in your budget to buy and flip or hold.  Most realtors don't want to bother showing them since the commission is so low though.  You might also look into RI for mobile homes.  Buy Lonny's book (Making Money with Mobile Homes) as a starting point.  Good luck!

Typically you have to honor the existing leases if there isn't a provision in them already.  Just get the tenants under new leases ASAP, often times they won't mind signing a new one.  Yes deposits need to be kept separate.

I can only comment that I walk away whenever I find foundation issues.  I view it as too risky.  Doesn't mean you have to, just to me disconnecting all utilities, lifting the house, removing old foundation and pouring a new one, etc takes quite a bit of money and time.  It would have to be an amazing deal for it to be worth it to me.  YMMV.

First impressions: why is it not breaking even without renting bedrooms out?  How many units is it?  Do you have to go the hard money route?  That's a lot of interest!  I wouldn't go hard money unless you had another exit strategy.

As far as other creative financing ideas, aside from angel investments from family I don't know what to suggest without knowing why you need the hard money loan.  Please provide more details.

FYI - I once spoke with someone who wanted to do this, but couldn't get FHA on a duplex because they weren't going to occupy both units. You might have the same issue with a 4plex.

Just get an attorney who does these things, and the title company and title insurance.  I have purchased 2 properties without brokers/realtors, well worth saving the money IMO.

Yes contact the seller first, you can threaten to sue over the disclosures.  One thing people don't realize is that electrical wiring has dates on it, so you can prove they didn't get a permit because the work was definitely done after the date on the wiring!  I don't know if PVC has the same thing or not.

Of course going the legal route and suing them is not ideal, you could demand they fix, and then ask for some sort of money for lying to you.  YMMV.  IANAL.

For any of these, make sure your margins are huge to account for the risk!

For the summer cottage, is it in a vacation rental area? You mention there is a HOA, so I presume it is somewhat desireable? Cost per sq ft an option? Flipping could still be an option, but expect a MUCH smaller pool of potential buyers. Might want to try a lease-to-own type of deal. Also takes longer to sell.

For the compound, yes just treat it based on cashflow.  If it has a strong rental history that is fine, expect a discount for multiple physical buildings vs one larger multiplex.