All Forum Posts by: Tariq B.

@Jim S. unfortunately the local brokers are the only people I have tried, I stopped going to the "big guys" long ago but i appreciate the idea. I'll just keep trying more local brokers. 

@Matthew Paul  how's the weather out there, I don't miss the weather there but I sure do miss the RE market! How would  your idea work in this situation? I would love more details.  

@Clint LeClair that's what I was considering something similar but I'm not sure it would work. Their thing is well it has to different addresses so we have to do each separate. One company would not do it simply because their LLC cap was one. As in one property in an LLC -_-

@Nick C. I know right I'm not there yet so that I have no idea on. 

@Joel M. that's wild that is quite the difference in prices! I got discouraged in shopping around because all the agencies I spoke to were in the same ball park of each other. 

Hey All,

I have a 4 unit deal under contract. It's two duplexes on one lot. purchase price $219,000 taxes $2500 and net rents 2250 a month. It is what I feel is an OK deal. But what is really making this deal look sour is the insurance policy. Because the units are separated it requires two different policy's making the insurance anywhere from 2500-3000 a year. I thought I was in the right ball park by running the numbers as $1600 for insurance but apparently I was not right. 

Any one have any thoughts on this? 

@Carson Wilcox @James Canoy @Andrew Johnson @Thomas S. @Dustin Beam  @Daniel Sitler

Thank you all for the replies.

Well I walked the property today and let me tell you...I hate the word slum lord but holy heck her face should be in the dictionary next to the term. 

The places are in such bad shape is hard to believe people live there, like not a thing updated in 10 years or 20. Painted hardwood floors. All new cabinets are needed paint inside out all new windows like 60 plus windows to replace they have window AC units (but again that might be the norm for the area and yes I agree on the PM idea) and then she has a drug dealer living there, she is cool with it. Dogs of leashes roaming around and collects rent in cash and cooks her books...she kept asking the hole time on what I grade her as a landlord...I just kept saying it needs work... 

also the listing was 1983...bit the case it was built in 1941!!! And had the original septic tanks...am I crazy to still be considering it though? Thinking about countering back less

@Mike Dymski @Carson Wilcox Thanks for the replies I am set up to meet with the seller on Sat so we're see how it goes. 

@Zach Quick it's tough to gauge so far I have not been in the units yet looking to do that this weekend but if the outside is any representation of the inside (and it usually is) then not great shape this is def a value add play. Asking was 350 and she accepted 285 without even countering...that usually sets off my red flag radar. Avg rents right now according to her is 700 per unit 

Hello All,

I have an 11 unit under contract. I will admit this is new territory to me, only dealt with SFR in the past. But it's time to step up my game!

This place needs a make over, owner has left it to deteriorate. It is fully rented and in the rent roll provided it seems like they are staying tenants are paying close to average rent for the area, but I just can't see that being possible with the the shape of the place.  

I have requested copies of all leases, last 3 water bills and copy of insurance (just to get an idea of what the rate would be for the place). However it would appear getting that documentation is going to be tough. This is an older lady who is selling due to health reasons and seems to have no preparation for the sale at all and has no documentation, I feel like this is a red flag or it could just be she is too old to keep track I'm not sure.

So my question is, would getting no up front documentation during the DD period be a deal breaker for you?

Thanks!

T

Hey Everyone,

So good news today and at the same time extremely nerve racking. I just found out earlier that my offer of $285K on a 11 unit was accepted! The asking price was $350K so I was a little surprised they accepted it without even countering back. The seller was very motivated as she was going through health problems and could no longer keep up with the property. 

In all honesty it looks like she hasn't keep up with it for years. There seems to be a lot of deferred maintenance from just driving by and not doing to much of a in depth look. 

My plan for this place would be to get in there get rid of non paying tenants or get rid of all tenants over time and fix up units as they become vacant with the plan to trying to change the tenant quality on the place. Right now it looks like -C tenants in a -B or B neighborhood. 

According to the seller the property brings in an average of 700 a unit (I personally find that difficult to believe as this is sort of on the higher end for rent in the area for 2 bed 1 bath, I have requested the leases so we will see).

so my question to you guys what should I be looking for that is different to a residential purchase? Residential is my bread and butter, commercial is a whole other animal. I would like to know what experience you guys have had when dealing with these sort of properties. And any tips would be greatly appreciated. 

Thank you!!!

P.S.

I will add I have the 20% for the down payment I have been in contact with several banks two of which I am considering going with. One, a smaller local bank with decent terms then one a big bank (Wells Fargo) with great terms but  unsure about them.

@Troy Luster Yes Sir, states it is tenants responsibility. My fear is I put my foot down and she gets insulted and does not feel the want to re up her lease in March. I have found individuals on these assistance programs put all blame on the landlord. 

Hello All,

Just had an interesting text from my tenant. "There were a huge amount of roaches so I had Orkin come and spray you will have to reimburse me. They can come monthly." 

Highly  irrigated from this text as 1. This is the first I am hearing of an pest issues. 2. She says I "have" to reimburse her. 3. In the city its the tenants responsibility for pest control unless it is multi family which this is not. 

This tenant is low income for what it's worth. How would you proceed? 

Hello all,

I have been back and forth with negotiations on a place. Seller agent  responds back to my counter " we will accept $33,500." So we wright up the acceptance of 33500 and sent it their way. Now we get a response a day later saying I got confused and miscommunicated. The seller will not accept anything lower than $34,500.

This is a real bummer, once I lock in on a number I don't like to readjust. Is there any creative way to make this a win win without one of us having to fork up the loss? 

Thanks! 

P.S. I would like to add that my agent confirmed with him if he meant to say $33,500. And the agent responded   "Yes, $33,500." This is all on email.