All Forum Posts by: Susan Perry

 That's the most exciting thing I've seen all day! I created accounts for both. I'll probably be up till 4 am checking out the possibilities. I'll share any progress that results.

Thank-you Jay!

 I like what you have to say Gilbert. Yet another direction I can look into. I need to do some networking to understand my options. I would definitely be interested in lending for a strong % back. Looks like this money might be better used in different ways or in a stronger "deal". I will proceed cautiously. Thank-you for your insight.

 Thank-you for your experience. I have never been one to have debt. My motto has always been: "If you can't pay cash, you can't afford the product". That has been my rule, and I have mainly stuck to it as of now. I am just trying to figure out if I should think of this real estate investment choice differently as recommended by so many on BP. I plan on quitting my job (as a pharmacist) thus giving up a large source of income. I would like to start replacing that immediately but by no means do I want to make "the wrong move". 

I appreciate all the opinions of more experience real estate investors like yourself. I am relatively knowledgable about the stock market side of investing, not so much in the REI though. Here's where I digress: I believe that rentals will become increasingly relevant as interest rates rise and stock market corrections take place. That is the other reason why I am exploring this idea of REI.

 @Jay Hinrichs

I'm not sure what you mean by "A class" but if you are referring to the qualities of the actual property, that is a point that I forgot to mention. The location is very good... proximity to beach/ university etc. The neighborhood is above average as well, so I do believe there is an appreciation aspect that I don't want to neglect to evaluate as well. As I mentioned in another post, I am concerned that I may be underestimating expenses etc and therefore reducing my return significantly. 

Anyway, thank-you so much for your observation. That got me thinking.

Susan

 @Wayne Brooks

Hmmm... not looking good in your opinion?

 @Hattie Dizmond

Thank-you first of all for taking the time to analyze all that! Again, I am very, very new to all this. My thinking was that I could go in with a strong cash offer and get the best deal. However, your advice is something I have run into on BP and that is not to use my own money when possible. It is a different way of thinking for me. I have a lot of discomfort with the idea of "debt" but I am trying to learn to think differently. I have also read about considering a 50% expense on the cash returns... which makes this deal look even worse considering that it is not risk free, etc.

I may ask for full credit on the roof and air conditioning which will swing the deal by about $15,000. I am sure the seller will reject that.. he seems relatively reluctant to sell (dragged his feet on signing after verbal agreement, etc) The rejection of the credit request would be my "out" I guess.

I'll keep the post updated on how things turn out.

Thank-you again for your advice.

Susan

I am in the inspection phase of a duplex purchase in Boca Raton, Fl. I have been doing a lot of research and I am starting to think I should leave this deal. I would appreciate any feedback that anyone may have. Here are the details: 

There are 2 units each with 1 year leases that supposedly expire in Jan 2016. The rents that are being paid are slightly below market but I am ok with that part. The leases have dates erased and filled in and the last page of each is signed but not dated by the renters. I briefly met each renter and the vibe is ok but I am asking my realtor to get payment receipts and a statement from each renter acknowledging deposits applied, agreed upon rent, lease dates, etc.

The roof needs to be replaced which I knew going in. Initial investment is: $347,500. Current rents: $2450 which I would plan to raise to at least $2900 ($1400 and $1500 for second unit which has some upgrades.) From what I can gather the property is worth $380,000??

The inspection revealed the following other issues of concern: all appliances in both units should be replaced (not immediately or urgently). One air-conditioning units needs replaced. Federal Pacific electric panels need replaced. There are several other issues that exist but that I consider minor in nature.

I do plan on asking for the seller to deal with the electrical panels and I am going to ask for a credit for the roof and air... not sure on amounts yet, etc.

This is a cash deal so I have no mortgage or interest payments. I am still wondering if the return is worth it.

Any and all observations/ advice would be greatly appreciated.

Susan

Right on other side of 1 near 20th. Will be more like 0.8% to start but I'm ok with that : )

The duplex I am buying is approx $350,000. It is something I plan to have and rent/hold. It will initially bring approx $3000 in income the first year. I am not very experienced so I do not know the formulas, but I feel it to be a sound investment. I have been quite uncomfortable with the volatility of the stock market and really will be happy with even a small return. I am pretty confident about the area and am actually looking to get a second duplex very close to there if the opportunity presents itself.