All Forum Posts by: Zachary Chart

Start the eviction process. Maybe even offer a cash for keys before moving forward, there are plenty of "good" tenants out there to replace them. Doing cash for keys is obviously not ideal, it could save months of court and prolonging this problem. Offering 3k to get them out NOW and a new tenant in as soon as possible should shore up this problem and it would be behind you and find a better property manager who cares about the bottom line. To let this problem go on as long as it has is a major red flag that the PM is careless. 

I found a deal for a 4 unit investment property mixed used zoning. The property has 2 apartments, a small storefront currently used as a salon, and warehouse space in the rear of the property. The current owner has dropped price $80,000 in the past 6-8 months and has STAGE 4 cancer. Sadly, he will not have time to reap the benefits of his hard work throughout the years. I believe he will accept a lower offer around $240,000 if it was a cash deal. 

I currently own a single family home I lease out (mortgage 781 rent 1800 increase 5% annually). I just purchased another single family home last week that I plan to turn into a duplex to increase cashflow and provide more affordable housing in an area that has barely anything on the rental market. My funds are wrapped into that project at the moment while maintaining a buffer for emergency. I bought that deal at $205,000 and believe ARV will be $300,000. Budget is $50,000 for renovation.

Does anybody know of lenders who will entertain a zero money down loan to acquire this new deal? The LTV will be way below 80% if he accepted the offer of 240k. My plan would be to slowly increase rents on the two apartments closer to 12-1400 range. If the salon left or went out of business I'd turn that space into another 2 apartment units which would lease for $12-1400 easily in the market I am in.

If anybody here is interested in partnering on the deal or can steer me in the right direction for funding please reach out (not sure that is allow here please delete post if not) I am 27 years old and looking to expand without over leveraging myself into a messy situation as rates continue to rise. 

Current rents (below market)

Warehouse: $1500 

Storefront: $1000

Apartment A: $950

Apartment B: $950 (this tenant gets $200 off rent to clear driveway of snow and cut the grass) 

I do not self manage and have a really good property manager who will do the footwork on that end.

I am a new investor in the state of Maine, I just leased out my first property (3bedroom ranch) and have some capital I am looking to expand. Georgia is a possibility if the right situation arose