All Forum Posts by: Andrew Kniffin

@Mike Sattem

Your only source-of-contact with the owners of these properties is via their US Postal Service address (which you've obtained through the county tax assessor's office), right?

In other words, you don't have the owners' (a) phone numbers, or (b) email addresses. If they don't respond to you, you have no other way of connecting other than sending out another letter to their physical mailbox.

Is that correct?

That's a great problem to have, Mike!

So, 20% of your letters have yielded responses. Out of those responses, half have said "no interest in selling" while the other half of responses have expressed willingness to discuss selling the property to you. Is that right?

-Drew

This is a thoughtful thread, and I appreciate everyone's input.

The existence of tension hear proves the delicacy of the issue. I try to conduct my business affairs by the maxim that a business(wo)man should "sells goods and services where the goods are good, and the services actually serve people." If our affairs pass that test, we will do well to all stakeholders.

@Craig Shute The right deal at the wrong time is the wrong deal.

I'm a newbie, and am also right now considering a duplex. Everything about the deal looks right (ie, the "right deal"), but my personal finances are in a place where the purchase of it might overextend me (ie, the "wrong time"). This could be the same situation for you.

I think this is the moment where experienced investors say that you should not fall in love with a deal, and that there will always be more deals coming along.

I wonder what @Grant Kemp would think?

What if you lease-to-own it to prospective tenant? That way, you'd get a large chunk of cash upfront, and your sale would be a longterm capital gain (>1 year ownership).

If you're investing for cashflow, then this deal does look pretty lean. But if you also considering your Personal Balance Sheet, then tenant is (a) paying down principal for you and (b) allowing you to realize appreciation gains while.

"as is" value is $120K, and mortgage is $115k. So I assume you're only bringing $5K to close? If you're getting a $120K asset with only $5k down, then you're getting some very good leverage, and not having to either (a) pay closing costs or (b) use up one of the conventional mortgages on your credit report.

So, as long as you're not requiring the asset to produce substantial cashflow, I'd consider to pursue it.

Congrats, Mike. That is super encouraging.

How did you get a list specific to multifamily-owners in your county?

@Christopher Roy I agree that 4% is a great rate to pay. I wouldn't lend at that rate! Take it.