All Forum Posts by: Walter Key

Without knowing anything about your situation at all...

$140K-$20K-$10K (purchase and refi costs)-$85K=$25K in equity. So, assuming your lender will allow you to pull out 80% LTV, you're looking at about $20K for cash-out. These are just BALLPARK numbers. But, as was already said, you make your money when you buy. Perhaps you should offer less than $85K.

Books a great for motivation, new ideas, the basics of a deal, etc. However, I've learned more about real estate from being a landlord and property manager than I ever did from a book. 

Way too little information here to tell you if 30,000 is feasible. What's the cost of the property? What's your estimated rehab budget look like? What are your holding costs going to be?

Agreed! 

You may need longer to get the rehab done but why the long lag on bids? Line up the contractors to be onsite the day after you close and give them all ONE WEEK to submit their bids.

OK. Are you planning to house hack (I.E. live in one unit)? Will this be a rehab/rent/refinance or a conventional finance for long term hold? These factors will change your potential options for financing.

General speaking, a multi-family is going to cashflow much better (assuming both are a good deal). Condo fees can quickly kill your cashflow.

First and foremost, read the lease top to bottom, front to back. Is there a stated due date and grace period? Is there a stated late payment penalty? Is there a clause for turnover of ownership to revoke said lease and institute a new one? Heck...is there a lease at all? Start there. 

If there is no lease, get one in place ASAP. Read up on your state's specific landlord laws and within the confines of that law, write the lease to protect yourself from a lazy tenant. Once everything is in place (either if the current lease is well laid out or if you craft a new one), HOLD THE LINE. If he's late, charge him the late payment penalty. No exceptions, no excuses, do it every time. 

He'll either reprioritize where his money goes and the problem will go away or you'll soon have a solid eviction case and he'll be out of your hair.

You said they are being managed by a property manager so YOU should not need to check on your tenants at all. Make your management company do their job and have them report back to you every 3-6 months on the status of the units. My management company will do a drive by check at least once every month or two just to get a quick snapshot of the outside, which can give you a great indication of how the inside is being treated. They will inspect the inside of the property at least semi-annually. This is something that you should discuss with your management company and have them put IN WRITING if it's not already.

Funny, before I even read the rest of your post I ran the numbers quickly and determine that MY MPP on this would be $109K. Bottom line, it looks like you can't make any money in this deal..