All Forum Posts by: Toi Perry

@Stone Jin Thank you Stone. I have just received the inspection report back and the roof and some major electrical work showed up. I am going to ask for an extension to the due diligence period so that I can hire a contractor to give me estimates. Then I will lower my offer based on the estimates and ask seller to pay homeowners warranty for 1 year.

@Todd Powell The property is definitely in a B area. Thank you for your reply. I will definitely use the inspection to my advantage and pay myself market rent.

Please help me analyze my first deal which I am currently under contract for and will have an inspection on tomorrow. I am having trouble finding comps since there are not many triplexes sold near this area. I was unable to see the property until I put it under contract. During my first walk-through, I realized that it may need a new roof (judging from my untrained eye.) My plan is to lower my offer based on inspection. I will also live in one unit for at least a year while doing any necessary cosmetic work to raise rents to market rates. My boyfriend & I will also pay myself rent to add to savings for reserves. My goal is to at least lower my current living expenses ($800/mo) until I move out and start cash flowing.

Offer Price: 185,000

FHA 30yr loan amount: $181, 649

Interest rate: 5.125%All units 2bd/1b w/ 1 car garage 

Current Monthly rent:

Unit A : I will live in. Currently rents at $725

Unit B: $685; lease expires April 2019

Unit C: $625; lease expires April 2019

Opportunity to increase rents after April (Avg rent in area $750 for 2bdrm.)

Taxes: $222

Mortgage Insurance: $126

P&I: $989.06

Closing costs: $9,568

Potential Operating Income: $27,000

Operating Expenses

Property Mgmt (10%) - (2700)

Water (currently paid by landlord -only one meter) - ($1839)

Vacancy (8%) - ($2,160)

Maintenance (10%) - ($2700)

CapEx (10%) - ($2700)

https://www.trulia.com/p/ga/conyers/1724-wesley-wa...

Any input/advice would be greatly appreciated.

Please help me analyze my first deal which I am currently under contract for and will have an inspection on tomorrow. I am having trouble finding comps since there are not many triplexes sold near this area. I was unable to see the property until I put it under contract. During my first walk-through, I realized that it may need a new roof (judging from my untrained eye.) My plan is to lower my offer based on inspection. I will also live in one unit for at least a year while doing any necessary cosmetic work to raise rents to market rates. My boyfriend & I will also pay myself rent to add to savings for reserves. My goal is to at least lower my current living expenses ($800/mo) until I move out and start cash flowing. Offer Price: 185,000 FHA 30yr loan amount: $181, 649 Interest rate: 5.125% All units 2bd/1b w/ 1 car garage Current Monthly rent: Unit A : I will live in. Currently rents at $725 Unit B: $685; lease expires April 2019 Unit C: $625; lease expires April 2019 Opportunity to increase rents after April (Avg rent in area $750 for 2bdrm.) Taxes: $222 Mortgage Insurance: $126 P&I: $989.06 Closing costs: $9,568 Potential Operating Income: $27,000 Operating Expenses Property Mgmt (10%) - (2700) Water (currently paid by landlord -only one meter) - ($1839) Vacancy (8%) - ($2,160) Maintenance (10%) - ($2700) CapEx (10%) - ($2700) https://www.trulia.com/p/ga/conyers/1724-wesley-way-nw-conyers-ga-30012--1004675021 Any input/advice would be greatly appreciated.

I received a modification to my original offer on my first deal stating that the current security deposits would need to be transferred to the buyer’s (my) designated holder that “shall be a licensed Georgia real estate broker.” What does this mean and why can’t the deposits go into my personal account? Any insight on this will be greatly appreciated.

@Donna Allon looks great. Congrats!!

@Cody Blackburn hi Cody, I recommend you watch some of the BP videos on YouTube or listen to the podcasts to figure out what type of REI Is best for you. There is a ton of information there to help and guide you to whatever you find would be best for YOUR money. Good luck and best wishes. You are already ahead of most being 19 with savings. Thumbs up!

Originally posted by @Mike Dorneman:

@Toi Perry if you haven’t already, begin searching for an agent, and be comfortable “interviewing” a few. Not all agents understand what we do and why a “beautiful house” isn’t always the same as the “right house” or smart business decision when you plan to “house hack”. Try to find an agent who actual invest as well and understands the rental market in your area. Also remember that it may take a few months, multiple properties and countless offers before you land your ideal property. That said, I’d rather have a month or two overlapnof rent and a mortgage if I found a great deal, than missing out because I didn’t want the payments to over lap. Simply build in the additional “double payment” into the overall deal costs and start looking now. Best of luck!

 Thank you Mike. You make a great point!

I am currently paying $1600 ($800 each) for rent in Atlanta, GA with my boyfriend. We are desperate to lower our monthly living expenses and are currently saving in hopes of being able to house hack on a MFR when our lease is up in December through an 3.5%FHA loan. We both have great credit and will have about $12;000 saved together by December. I am very new to the REI world and am soaking up as much knowledge through the BP podcasts and YouTube. After reading through the forums for the first time today, I am feeling like we should just sign another low payment lease so that we'll have more time to search for a great deal.

1. We have 5 months until our lease is up, what should we be doing now to prepare for December?

2. Are there any other factors we should consider?

Any and all advice is appreciated.