All Forum Posts by: Bryan Christopher

Hi all...

I'm going to see a triplex for a potential buy and hold rental property tomorrow. I've been researching here (and elsewhere) for a long time and am working with a great agent.  But, i was wondering what kind of checklist you guys might bring with you? (Mental or otherwise.) 

A few tidbits I do know...

- I know the area - very good, very familiar with the rents/appreciation, etc. 

-I know the individual (and gross) rents/gross income of the property. 

-2 of 3 units are rented, receiving applications for the 3rd. (2 units under short term remaining leases.) 

-Sidewalk visual inspection - No apparent major issues/looks well kept

-No rent control

Besides inspection/title search and other basics, are there any other formulas, things you like to ask for, things you've learned from mistakes with multi-units, etc? 

Would love some input so I can do my best in a short time period tomorrow. It's a well priced property in a good area so I'll need to move reasonably fast doing my due diligence. 

Thanks in advance all!

Thought I could make this one but looks like I'll just miss it. Definitely interested in the next. (I'm in Burbank, as well.) 

Do you ever post minutes or a round-up of what went down at all? Curious to know what kind of things were kicked around since our area is so challenging for investors. Hope it goes well. 

@Ewa Reza

Hi Ewa,

Burbank resident here and I agree REI in my area (and most surrounding) is tough sledding. Curious what you meant about these areas "not being hot markets".... do you mean not hot from the viewpoint of a potential investor?

Your duplex situation sounds like a nice deal. How much is your buyer having to front to close?

@Tim FitzGerald

Hi Tim, no financial interest in the house at all on my end. No deals here, etc. This is a simple human interest thing. 

@Mindy Jensen

Mindy, thanks so much. I really appreciate your putting yourself in her position. I agree, it seems like an oncoming train-wreck and I will relay these thoughts to her to hopefully help avoid it. 

@Mike Sedlacek

Hi Mike, hoping it won't have to come to that and Andrea is in a financial position where she will need that equity herself at some point. Not sure how the will is laid out in that regard. But I will look into that as a potential future option if need be. 

Again... I really appreciate the input here....

@Mindy Jensen

Mindy, loved your recent podcast appearance...

She IS for sure in the house already, but this is a very recent situation. Things are not settled and there is still some sense of "what should happen now" among everyone. This is why I'm asking the question now, hoping Andrea has some chance of using her position as leverage to keep it from getting complicated.  

There is other money to be distributed and Kate while not likely to be amicable... does want her share. So, I'm sharing this input (from this thread) with Andrea soon in hopes that she will understand the urgency of the situation and use that leverage to clear the house now while no one is 100% settled on what's going to happen. 

I believe Kate asked to stay in the house "for 3-6 months" as a get back on their feet kind of thing. But we all know how that goes. Seems to me she can take the liquid inheritance now.... and the equity from the home shortly if she gets out and help herself just fine. 

Again, really appreciate this input...

@Joe Bertolino

Joe, she's already in the house. They came about 6 months ago after the husband lost his job and have been living there since. So, no move necessary.... but your point is totally understood.  In fact, the fact that they are already there and settled in makes this even more concerning IMO....

Very very interesting input, all. I agree but I really appreciate hearing the "whys" in this conversation. 

Anyone else with thoughts, please chime in and thank you.....!

Hi all...

Sadly, a friend has seen both of her parents pass away in the past year and change. They were older and it was not unexpected. They left a will with my friend as the executor of the estate.  There are three children and as you may have guessed, there are issues. 

The will is very clear which is good. (1/3 x 3 basically.) However, the sister is not compliant and has a very rogue attitude about this. She doesn't seem to understand that the house is essentially a legally protected area at this point. 

In any case, here's the issue. This sister (we'll call Kate) wants to live in the house with her kids and husband for a while. The executor (we'll call Andrea) has concerns about this. (As she should IMO.)  There is also a brother ("Bob") in the picture who is out of the city, fairly laid back and just happy to get his 1/3 when it's sorted out. 

I've advised my friend against allowing them to live in the house, as I fear they will become tenants and Andrea will have to literally evict them to get them out. Kate says they "just want to stay there for a few months."  But, it's a contentious situation at best. They hardly speak. Not only do I believe she will loot anything she can from there (which is a side issue)... but I do not believe they will leave until they feel like it. Thus, holding up any forward movement on the sale/distributions of equity. 

If the house was EMPTY, I wouldn't even know where to tell Andrea to start with all of this. But with a potential "naturalized tenant" of sorts, this seems like it could get messy. 

I have no experience in how these things are handled. Reaching out to those here who may have some ideas for this situation, advice on how to handle this... what to expect, etc. I'd love to know what YOU would do if you were her. (Having a better legal foundation of knowledge than I do on all of this.) 

Thanks in advance for any help. Sorry this was so long. 

@Eric Fernwood

Eric, Terrific response. Also very interesting that you address the off-market topic. I'm positive there are good deals to be had off-market if you're in the right areas/situations. But for the OOT investor, those would seem hard to come by. I listen to a lot of BP podcasts and there seem to be endless stories of people buying up cast-off properties during the crash... or by scanning obituaries or putting up bandit signs.  Frankly, that's just not a reality for a working professional like myself. Yet, I still believe there are profitable deals out there to be had going through traditional means, even if it means starting with somewhat lower margins... but also hopefully lower headache-factor. Again, from out of state, I need to minimize drama to the best extent I can. 

Thanks again for the breakdown. On the cash property example at 51K - do you recall what the all-in cash amount was for purchase? (Covering all purchase/realtor costs, etc.) What would an investor need to bring to the table cash-wise to secure a property like this? 

@Eric Fernwood

Eric... tremendous.  Just terrific info. 

With regards to this statement you made...

If you are mainly looking for appreciation and returns in the 2% to 4% range are OK, class A single family homes in specific areas in the $220,000 to $350,000 range would be a good buy. This sort of investment is perfect for higher income earners who are building up a retirement income stream.

In these case scenarios, you're talking about a cash outlay of 60-80K or so? Are these properties just straight MLS purchases or are you speaking about acquiring off-market deals of some sort?

Also... the "older condos" you spoke about that rent for 400+ ish per month. You were talking about all-cash purchases in that case?  What class neighborhood? 

Again, thanks so much. Awesome info...