All Forum Posts by: Tyler Todhunter

@Joel Owens Thank you for the insight.  I had to check the age of the building after reading that, and it was built in 1917- so all of your advice is relevant. 

@Josh Ridpath I pulled up the area on Loopnet and saw a few commercial storefronts (occupied by name brands) advertised between 6 and 8%.  Thank you for the perspectives on cap rate!

I appreciate the feedback and knowledge shared.  

Thanks Greg.  Oddly enough, I was in Charlottesville last weekend!  The property is currently vacant.  I'll try to check it out in person, and research vacancies in the area.  Good info on the re-lease.  

Hey BP commercial community!  Novice investor here- Currently own home, 2 investment properties, have done some flips in the past.  I've got a wholesaler that occasionally sends opportunities my way- and he recently sent me a commercial property that caught my eye.  The details of his email are below:

3000 Sq Ft Commercial, 175K Purchase Price with Owner Financing, No Origination Fee's or PrepayBuyer Pays All Closing Cost40K Down8.99% 30yr Term 10 year Balloon

I followed up by confirming they were carrying the note and asking how the place is laid out.  Replied:

It's being sold as is and need some work. it's one storefront now and a second storefront that runs into the garage but it could be separated with a wall. Then it would be two storefronts and a garage. It's best if you walk through if you have some interest. I'll carry the note and I'll cut you a deal if you're interested.

I ran numbers, best I know how, and the market value at the local cap rate seems like it should be north of $350k.

Am I missing any key components to my calculations?  Of course, I would need to know how much it would take to get it to marketable condition.  What other information should I be asking about?  What should I be cautious about?  With the price being half of what it could be, is that too good to be true or is this normal for a non-performing commercial asset?

Thank you for any input!

Thanks for the input, John.  On to the next one!

I use a broker in Aberdeen for vacant property insurance, through Foremost.  PM me for contact info.

From the city:

Good morning Sir

The house at xxxx was destroyed by fire on xx/xx/xx.

Due to flood plain regulations and the amount of damage to the house, the house shall be

1. Elevated above the flood plain and freeboard. House shall be secured to a new concrete foundation. After elevating, the house may be repaired to current building code requirements. Those requirements include Building Code, Washington State Energy Code, Uniform Plumbing Code and the Municipal Code.

2. Or, the house may be demolished and a new one constructed on site per the stated codes.

I followed up by asking: 

When is it required to elevate a house and/or pour a foundation?

And received the following response:

When a house is substantially damaged, improved or newly constructed. Substantial means when repairs or improvements exceed 50% of the fair market value of the house.

Hey BP community!  I have the chance to buy a fire damage house at a good price through a wholesaler.  In my due diligence, I contacted the city code office to make sure there are no deal breakers- there might be.  The city requires any "significant" modifications (restoration or modification constituting 50% of the value) to elevate the house and secure to a new concrete foundation.  The house is currently post & pier.  

Has anyone taken a post & pier house and put a foundation under it?  How big of an undertaking is this?  Thanks for any input!

Hey Joey, have you had any luck with the Letter of Intent approach?  Thanks.