All Forum Posts by: Sean Ploskina

@James L.Good work keeping your expected rents at the low end of the area.

Looks ok but make sure everything is in your calculations like vacancy, cap ex, taxes, insurance.  Do you pay any of the utilities?

Have you accounted for management?  What do they charge in your area?

Was this property purchased in cash? If that is the case than yes the ROI is low. However if this is free and clear after debt pay down your ROI is whatever you initially put into the deal.

I agree with @William Randolph and would leverage this property to a level that it still cash flows some and use that money to buy a larger property. 

No the link doesn't work.   

It will be pretty obvious by looking the building if it was designed to be a triplex.

I am looking at a property that offers development rights.  I have had trouble finding a reputable source on the interwebs explaining this. 

Can someone here on BP point me in the right direction?

I love the land but don't want to miss something

You need more information to see if it is a deal.  But just based on what you have there are questions

One heating source for all three units? Was this a SFH before?

Cost to split up?

You say there are few low priced 3 bedroom in b/c areas.  Based on what research?

You need to know the rents that this is and could get.  You will need quotes on the cost to install the new heating sources.

What condition is the property, as in age of the building and appliances.

If possible see if this is listed as a three unit on the tax records, this will give some info about if the split was done legally.

Bottom line there is a lot more research that needs to be done on this before you move forward

How does the rent compare to other buildings similar to it?  

Is there space in the units for a small stackable washer/dryer unit?  They are not expensive, can be added as people move out, and can be a big selling point.

The price may be right depending on how it compares with other buildings like it.

Normally you need to hold for about 12 months to be able to refinance.  But it depends on the lender.  One told me 12 months another said I had to show one calender year's worth of rents.  The norm seems to be the 12 months though.  You should be able to get that down to under 5%which should cover the place.

@Brooks Rembertundefined

Be careful if you move the property into an LLC and try to refinance. I did this and Wells Fargo balked two days before closing.

It will come down to how you finance the property and you personnel risk tolerance.

If you are buying it as a investment property from the bank they may require up to six months in mortgage payments in reserves.  So 300/mo X 6 months= 1800 dollars on top of everything else.

At a minimum I would have 5000 for your first property if it is 1 or 2 units.  This will cover unexpected expenses that you haven't accounted for with your first property.  I speak from experience on that one.  I bought a fourplex with everything I had and two of the four promptly stopped paying the day I closed.  

The hard money option will be very expensive considering that you will have to hold for at least six months to one year before you can refinance.  So keep that in mind.

If you can get seller financing it will be the best way to go. You can offer to refinance after one year to get them all their money. But be sure your numbers are such that you will appraise at 75% LTV which is what they will require.

Have you considered living in one of the units? In 2-4 unit buildings you might qualify for a FHA loan and only pay 3.5 percent.

If you have a willing partner that will work also as long as everything is clear between the two of you on early aspect, things like who pays the mortgage, who claims how much on taxes, who manages, etc.

Good luck