All Forum Posts by: Thomas Lowe

@Thomas Lowe bump

I’m located in the Midwest. Looking at a duplex in a C/D class neighborhood. House is pretty beat up. Built in 1895. It is currently rented with both sides occupied. Total rent 1900 a month. Asking price $99,500. Obviously, cash flow is very good. I will be using property management. This will be my first property.

I was considering making an offer contingent upon inspection as well as verified rent roll.

A few of my concerns are:

Will this be a major headache and not worth it?

Also, I am a physician and a little worried about personal liability.

Thanks for your input!

@Lynnette E. Thank you for your response! I suspected she might be hiding something but wanted to see what others thought. Thanks!

I'm looking at purchasing a portfolio of 3 single family homes for 300k in the midwest. Cap rate 9%. Numbers seem fairly good after analyzing rent roll. 2 of the houses are in B neighborhood. One home is in C neighborhood. A couple of my concerns are:

-The seller is a real estate agent in the area. Claims to be relocating and is therefore selling properties. She has NOT listed the properties on MLS. What would possibly be the reason to not list on MLS?

-I asked if I could do a virtual tour as the property is 3.5 hour drive from me. She declined and gave me various reasons including "the properties don't show well via video tour." Is this typical?

Thank you in advance for you help!

Tom

I’m told the seller is in California and looking to sell for 1031 exchange

@Bryan Mitchell @Bjorn Ahlblad. Really appreciate the insight guys. It is operated by a property management group. I’m uncertain if they are reputable. I recalculated my offering price based on the original lower rent prices and it comes out to $603,000. Asking price is 675,000. 9.17% cap rate. 2845 Glenaire dr Cincinnati, Ohio. In case anyone is interested

@Bjorn Ahlblad. I’ve asked for further clarification on the proof of payments and rent history, and I was told that I have to put in an offer first. Is that typically how things are done? Why would anyone put in an offer before they know the details

That's what I was thinking. .Thank you!

I'm looking at a 12 unit building in the Midwest. Cash flow is very impressive on my analysis of rent roll. However, when looking at rent roll, I noticed that 2 weeks before the property went up for sale. Rents in three of the 2 bedroom/1 bath units were increased from 650 to 850. Market rent for this area seems to be about 700-750. I'm assuming they did this just prior to sale to inflate their numbers? Is this too much of a red flag to buy the unit? If I was a tenet, I think I'd probably consider moving out if my rent was suddenly increased 25%. 

Thanks in advance for your advice!

Thanks everyone for the advice . Much appreciated!