All Forum Posts by: Treven May

I have somebody locally that would like to take a look at my apartments to ensure they are to code for an upcoming relocation. They will be widening and paving a new highway, and will demolish homes as a result. There is a DOT uniform act that allows them to relocate these people to certain rentals for an amount of time, paying for their living expenses. I was just hoping somebody would have some insight into this process and maybe some words of wisdom so that I can protect myself against upcoming renters that have their rent prepaid and deposit taken care of. Im hoping I can require a larger than normal deposit in case something was to happen. I would also like to know if I get to chose the tenants. These are all questions I will ask the person that will approve of my fourplex but im just trying to get some insight before hand.

Last year a couple had a for sale sign on a duplex, when I questioned them about owner financing they were hesitant, but comfortable enough with it. I recently caught up with them the other days, and they have moved into one side. They said they moved in so that they didn't have to pay capital gains on the property and needed to live there for two years, and will sell it then. I said no more and went on my way to read up and structure the perfect deal. Tax assessment is at $290,000 Would sell on the market for probably $310-$320. Rents for about 1200-1300 each side, owner pays only trash ($100 month). So since they are owner occupy to get rid of Capitol gains, what kind of options could i pitch at them?

I like to think of myself as aggressive but I do put a lot of time and consideration Into my investments. I don't make quick jump decisions. My fourplex I currently live in is not cash flowing but you have to remember that I'm living in It for free instead of making payments to somebody else or a 1800 month mortgage like most Alaskan friends I have. I think that I will focus this year on paying 1-2k a month on my student loans and get it out of the way for next year. I don't see my investments immediately outweighing the heavy 6.5 interest rate. The good thing about my situation is that I work on the north slope of Alaska and make a decent living in the oilfield on a two week on two week off rotation. So I can afford to get this loan out of the way this year and come tax time next year out that 5% down on that property and get some hands an rehab it in two weeks. I think that I could rehab this fourplex and flip it but I think I'm leaning more towards buying and holding.

So I've closed on my first fourplex using FHA owner occupy and plan to refinance in the near future. Even with living in one unit I'm still making 250 a month on rent. So I still have 12k in student loans at 6.5 interest rate and I would like to get rid of this since it is my only debt. I recently have been given an offer to buy a condo for 125k and owner finance. Mortgage would be around 1100 and it rents for 1200 so it's barely paying for itself. There is also a fourplex on homepatth for 170k that needs some fixing up. The market in Alaska is very good and I wouldn't have any problems renting or sellin it quickly. It's assessed at 330 before foreclosure and I could get the rehab loan with it to fix it up. Should I focus on paying off student loans or should I take a risk and jump on one of these offers?

Thanks for the tip! I will start there.

Name is Treven May and I'm from Wasilla, Alaska. I recently bought a fourplex in wasilla and I'm looking to gain a better understanding of the real estate world. I am no expert when it comes to real estate or investing but numbers and common sense comes easily. I do however have lots of experience with renovations and dealing with people. Currently I work on the north slope of Alaska in the oil field as a well support technician. I work a rotating shift of two weeks on and two weeks off 12-16 hours a day. I oversee different work groups at times and run big jobs to work over wells to produce more oil. So Alaska has a track record of a stable economy and stable housing market. The cost of living is high which results in a lot of people in anchorage and wasilla to rent. The downside is that there is not a lot of great deals as the united states and the prices are right at or near appraisal value. I'm closing on my fourplex in mid-late may and intend on owner occupying it with a FHA loan. Currently all four units are rented. I will be taking the top unit that has a renter that is a smoker. We did our inspection last week and everything came back 100% with the exception of a few small items. Numbers: 318,000 total loan (all closing paid by seller ($7000)) 3.875% interest rate Mortg insurance for life of loan ( will refi after 20% to conv) Rent is 800 for two renters, 850 for other two ( my new lease will be 850 across board and 5-6% increase yearly.) Unfortunately I have common entry so I pay gas (250 avg month) So after all principle, interest, taxes I make roughly 241 while occupying. I do however have to pay for gas so I break even until tax time. Both me and my wife are very happy to live rent free and since I work on a rotation I will be using a prop morg company to manage it while I'm away until she feels comfortable taking over. If she doesn't then o well. Again I'm not looking to become a guru or take over the world, I'm takin my investments one day at a time to create wealth not be rich ( for now). I now begin my path of browsing the archives of BP and would appreciate any "must see" links such as excel spreadsheets, formulas, guides, tips, etc.