All Forum Posts by: Steven Lalonde

Hey BP!

I have approached a For Sale By Owner commercial zoned property with agreed upon purchase price of $200,000. I am doing a purchase + improvement loan. My lender is requesting 25% down on Finished Value. Finished Value will be $350,000 after Rehab. Down Payment needed will be $87,500 + closing costs, lender and appraisal fees, which I asked seller for seller financing the Down Payment and fees, totally roughly $100,000. Starting mortgage loan $262,500, 5% interest, 25 year amortization. My Rehab budget is $60,000 coming from LOC and family to make this property into a triplex with monthly rent income of $3000. PITI on this property is $1900 monthly. Cash Flow after cap ex, vacancy, property management, lawn maintenance is $300 monthly.

I wish to REFi Finish Value amount at 80% LTV. I am getting Analysis Paralysis and also getting confused with all the numbers. Does what I am planning to do make financial sense? If not, how can I improve this situation to BRRRR this deal and repeat!

Thanks!

Steve

Hope all is well everyone!

I was hoping for some advice on how to proceed. I live in Castlegar, BC, Canada.

Heres what my first few potential deals look like.

I have an accepted offer on an owner occupied house, working on financials and all looks good. This property would tie up a significant amount of my cash and potentially some line of credit to acquiring and renovate to my criteria. I also have two submitted offers on two bank foreclosure properties, both distressed and would require a significant rehab loan on both, one more so then the other. I may be able to acquire these two properties with all my remaining cash and line of credit, but the rehab loan would need from bank, purchase plus improvement.

My current house I live in would make rental number 1, up and down duplex (3 bed 1 bath up, 2 bed 1 bath down). The two foreclosure properties are an up and down duplex (2 bed 1 bath up, studio/bachelor suite down) and a triplex (3 1 bed 1 bath suites) and the new mortgage guidelines stat in Canada in order for acquiring rental property number 3, I would need $100,000 cash at my disposal. The three rental properties, based on my numbers would cash flow $200 per door for $1400 per month.

I have some ideas on how I am thinking on proceeding, but was hoping to hear your thoughts, if your interested in sharing. This is all new to me but very exciting.

Cheers,

Steve

Hey BP,

Any Real Estate Investors living or investing in British Columbia? More specifically investing in the Interior or Kootenay region?

Cheers,
Steve

Hi BP,

For all those folks out there that manage their own rental properties, what are your thoughts, opinions and advice on setting up a Property Management company/business to manage your own personal rentals at the start of your Real Estate Investing career?

If you were to setup a Property Management business and bank account, and manage your own properties yourself while putting away 10% of the rental income into the business account, that you would otherwise pay to another Management company, is there any incentives or tax write-offs/implications in doing this?

Thanks,

Steve

Hi BP,

A triplex deal I am working on involves one tenanted suite and two vacant suites. Made offer during pre-foreclosure, now bank is taking over the property as my offer is being considered. The property needs substantial renovations and I would like all suites vacant to do the rehab. My  realtor mentioned that it is not the bank's responsibility to give tenant notice to vacate property that once offer is accepted, due diligence period is complete and court stuff in done, during closing and possession, it will be my responsibility to evict the tenant if they do not cooperate and leave as told when i asked for vacant possession in the offer contract.

Is this a normal situation during the foreclosure process and dealing with REO properties?

Thanks,

Steve

Thanks for the replies John Warren and Lumi Ispas. From the research I have done, it appears many properties listed for sale in the small city I am looking at have only on street parking. What makes me nervous is that this triplex is at the very end of a no thru road, where snow plows will not get close to the building. With that being said, the building is very close to amenities and well within walking distance to grocery stores. In your experience, does rentals with no parking available attract less desirable or troubled tenants?

Thanks again!

Hey!

Would you buy a triplex that has very poor parking available for the tenants? 

A potential property that I am looking into has parking only available on the street, first come first serve, located about 3 houses down from the unit. C class neighbourhood.

Thanks,

Steve

Hi! My name is Steve, I have been checking out the BiggerPockets site and podcasts for about two months now and am excited to get started in real estate investing. I currently am house hacking a duplex, I live upstairs with my two boys in a 3 bed 1 bath, and rent out my basement suite, 2 bed 1 bath. I get $1000/month in basement rent.

I am looking for advice on my "first" rental property deal analysis. I want to jump in but am scared at taking this risk. Please help!

I am thinking of purchasing a 3 bed 1 bath home in a C+, B- neighbour hood. The house is actually a mobile home with a covered metal roof on a full unfinished basement foundation. The mobile home part of this deal scares me a bit. The full unfinished basement could be a 2 or 3 bed, 1 bath rental unit. I am thinking of separating the electrical with each suite having their own 100amp panel as well as their own hot water tank. Upstairs will be gas furnance, downstairs thinking baseboard heat.

The purchase price is $140,000 with 20% down conventional bank financing. Im looking at getting a construction loan or second loan for the rehab, around $80,000. All said and done, I am thinking ARV is around $260,000, but again, scared on this house being a mobile home, even though it wont look like it when it is rehabbed. Plan on Refi after rehab done and rented out.

Based on these numbers, does this sound like a good deal? How will I know the ARV will be what I think it will be? Mobile homes in my area are general priced less then

Looking forward to hearing some advice!

Cheers,

Steve