All Forum Posts by: Tony Otis

 Curious, how were you able to find the 18 unit deal?  Seems like a pretty big start for your first multi-family!

I'm also a new investor in the Twin Cities. I just closed on my first rental property in December.

I typically have used my phones calculator app or mortgage calc app while I'm at the property and then do an Excel calculation when I get home

I'm curious how everyone goes about evaluating potential buy and hold rental property deals.  I'm not interested in specific numbers, but what your process is.

Do you use a simple calculator app on your phone? Do you wait until your home from a property tour and run the numbers in Excel? Do you use the BP calculator from your phone or at home?

Thanks for the input

Just toured a place yesterday that has potential to be a good investment for my first rental property:

$119,900 list price

3bd/1ba

Would rent for $1400

Cash flow $450

CoC Return: 14.5%

Its all been updated, looks pretty modern, would be ready to rent with little work.  My only concern is the foundation.  The basement looks fine, its tiny and theres only a furnace down there.  The ceiling of the kitchen though appears to be sloping down.  There are no cracks and the ceiling is in otherwise great condition, but you can see its un-level compared to the cupboards.  From the outside, some of the visible concrete foundation looks to be chipping away.

What would you guys do in this situation?  It'd certainly be profitable short term but how can I possibly know if this thing is going to sink into the ground in the next 20 years or something?

 I guess thats why I'm posting.  What do I say then?  Do I leave out that I don't own it yet? Seems dishonest.

I would put the odds that I will purchase this house at 75%, it's likely that I'll buy it and hire someone to fix it.  I guess I'm probably not getting that message across.

 He gave me a list of 6 contractors to contact.  I called them all, including whatever came up on google.

 How much would you recommend to pay for the estimate?

I don't know how I could possibly talk to a contractor before I look at the property.  I wouldn't know what I would need from them yet, and I'm touring 10-15 properties a week

Once I tour the property, it seems I have to get an offer in within 48 hours or so, I've already lost out on 5-6 houses I was interested in because I waited too long.  I guess if I were to do it again, I'd start contacting contractors the second the I get the message that my offer was accepted.

So I'm in contract to buy a duplex, my first rental property.  We had 5 days on the inspection contingency.  I had the inspection on the third day, found some things that need work.  My realtor got an extension for an additional 5 days.

I've had serious problems getting contractors to see the place and give me quotes on short notice.  I scheduled three after calling 15-20 numbers.  And now two of the three have cancelled on me.  Its now too late, I need to get back to the sellers by Tuesday.

My specific question is, what do you tell contractors when you don't own the house yet?  I feel like I'm unintentionally telling them I'm not worth their time.

I usually say something like "I'm looking for a contractor to come take a look at the house, I need new windows, there's an overhang that needs fixing, and some possible cosmetic work in the kitchen.  I need someone to come out by Monday night at the latest because I'm in contract to buy the house and I need to get back to the seller".

Do I just have poor luck or should I be more forward that I'm looking to pay them to fix this house?  I thought that would be assumed.

 How do you use Zillow to see rents for units current not listed for rent?  I'm logged in, but not seeing any option to do something like that.  That'd be really helpful though!

The neighborhood this house is in is only 10% rental units so the large majority of the houses have never been rented.