All Forum Posts by: Rick Jones

So looking at purchasing this reo property in my town as a rental. Its an older 1920's built house. Needs a roof, has some knob and tube wiring etc. But looks like I can get it at a great price, only thing is there's an addition to the house that looks like it's pulling away from the rest of the house. You can also feel in the floor from the inside that it's leaning. Here's a picture, http://imgur.com/z9ObBZg any thoughts what's going on here or what to expect as far as repair cost? Thanks!

Thanks for the insight guys! Think I might be over complicating things. I think i was looking at this like a single mfr when i should really be looking at it as 2 sfr that happen to be connected since that's what it is. I'd get some of the benefits of both as well as some of the cons of both mfr and sfh and it would simply come down to if I would buy either of them seperatly or not and if so then them being connected would just be a bonus.

So i've been looking to buy a multi-family property in my town. I've recently come across a duplex that both halves of are for sale. One is a lender approved short sale and the other is priced relatively low also, i think to compete with the short sale price. The sum of the price of both of these properties is less than that of other multi-family properties in the neighborhood. Running the numbers it looks like it could cash flow pretty well. What would be the cons as far as buying both of these properties separately? I would be paying cash for both, would i be able to refinance them into one mortgage? Thank you guys for your help!

Thanks everyone! Definitely looks like I'm gonna need to get a good home inspector through the place to see if there are any underlying issues in addition to the septic tank. Also looks like the wiring was redone at some point, disclosure shows no knob and tube wiring through house.

Hey all, I'm looking to purchase a small multifamily property as my first rental. I found a triplex that i like and when running the numbers it seem like a good deal. The only downside is that the property was built in 1850! It looks like it has been maintained and updated from what i can tell from the outside, vinyl siding, newish roof, etc. What are some things that I'm not considering that could potentially eat up my cashflow? What are some things specific to older homes to look out for when renting out a property? It also looks like the septic system may need to be replaced since it no longer complies with local laws, which may play a role in the lower asking price. Thanks!

Purchase: 126,900 

Repairs/Septic Tank: 20,000?

Rents: 2,500

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Prop. Tax: 346

Ins.: 100

Mortgage(@100%): 642

Vacancy(10%): 250

Repairs(5%): 125

Cap Ex.(10%): 250

Total Expenses: 1,713

Cash Flow: 787

 It was a cash only property on auction.com that was still being occupied by the previous owner. It was up for auction 3 times with little interest and I think people where just scared because it was occupied and there where no pictures of the inside. I went and knocked on the door the day before and introduced myself, they let me in and showed me the place so I put in an offer slightly higher than anyone else was willing to go since I knew the place didn't need much work and luckIy the bank accepted the offer. I say offer because auction.com isn't a true auction it's just a way of getting the highest offer to the bank for them to consider.

Hey all, first time posting, I've been lurking the forums for some time now though. I'm 22 and I just purchased my first property in the Philadelphia suburbs and wanted to get all your opinions on how i did and where to go from here. I've been looking for a property for myself for awhile and came across a property in the area i was looking at that was listed on Auction.com as an occupied REO, did my due diligence on the property and everything checked out so i went for it, its a 4bed/3.5bath 1800 sq/f twin built in 2001. Bought the property for a total of $131,000. I borrowed $100,000 from a family member. After closing i negotiated with the occupants to be out in a week and a half. Once they were out i spent the next couple of days cleaning and painting, literally all the place needed to my surprise. Within a week i had an appraisal and it came in at $192,000 enough to get my full purchase price back plus the closing costs for both closings using a delayed mortgage. Less than a month later i just closed and got all my cash back and payed back the money i borrowed. Trying to get an idea of what i want to do next, would like to rent out a room of the house to someone as i don't need all the space. Also thinking about using the cash i got back and a HELOC to purchase a multifamily property but would like to continue using creative ways to finance deals and putting as little down as possible. Thoughts, ideas, things i could have done differently?? Thanks for any input!