All Forum Posts by: Drew Zervos

My wife and I just started our path to financial freedom in real estate investing with our first multifamily purchase in Miami.  We got a great deal, but those are very hard to come by with MFs in Miami so we are looking to invest elsewhere in Florida and have heard a lot of good things about the Jax area in terms of value to growth.  Our plan is to purchase our next MF property by late next summer and want to use this time till then to connect with people in the area and learn more about specific neighborhoods/zipcodes that are great for MF investing.  

Thanks!

Hi Shawn,

I'm currently experiencing the same thing as I am set to close on a property that already has a current tenant on a month to month that doesn't meet my tenant qualifications.  The process for the seller to evict them legally would be to send them a 15-day notice of termination (must be before the 15th of the month).  However, with the COVID environment my attorney is advising all his clients against any evictions, as going to court could takes months to get them removed.  

The main thing though regardless of if you get them out or not is to have the current seller and tenant complete a Tenant Estoppel form.  A Tenant Estoppel is a letter where the Tenant confirms the details of their tenancy. This way after closing, there are no surprises. For example, let's say you need to evict in 6 months when you do go to Court, Tenant doesn't show up saying "I have a Security Deposit of $1,000.00" or "The previous owner told me I could stay here for a year" . . . or whatever craziness. The Tenant Estoppel is their certification of their lease terms. You can find these forms with a quick google search.

Hope this helps and good luck on the closing!

@David Nacco yea that would be great! I'm for now just going off the conservative estimate of a very BROAD ballpark from a friend who works in insurance.  

@Guifre Mora Well my analysis is based off of fully renting the whole property.  For at least year we will house-hack and bring in about 2/5 the mortgage from the smaller unit and live in the larger.  I'm planning for the future of this property since there's not really a calculator to tell if a house-hack is a good deal.  

@Guifre Mora Yes we have a lender who offers 3% conventional downpayment options since we will also be living in this property.  The rate will vary slightly between 3.5 and 3.7 most likely as we've already been quoted as such but as you know the rates are going crazy day to day.  

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Variable expenses reflect my market and don't include utilities/water/sewage as tenant will pay those.  House fully renovated with new appliances, plumbing, electric and impact windows.  Roof done in 2015.  Rents based off conservative side of rentometer numbers.

see edited version**

Hi @Tim Herman,

Sorry, but yes I got my numbers using the buy and hold calculator with 2% vacancy (realistic number in my market), 5% Maint and CAPEX (house was just fully renovated including electrical and plumbing with impact windows, roof was done in 2015) and 8% Management. Also note we don't plan on renting out both units for at least 2 years. It's a corner lot in a very up and coming area.

Hi Everyone!

My wife and I were ready to finally take action in a real estate investing career this year and then the virus struck. We are currently in negotiations with a seller on a newly renovated multifamily where one unit is currently occupied for what 2/5 the mortgage would be. We plan to live in the other unit which would make our mortgage payment equal to what we pay now in rent. I have run the numbers on the entire property as a rental assuming we move out in a couple years and rent both units and the numbers work great (15% COC ROI w/ $234 monthly cash flow). Our current lease expires in July so we will either have to renew or buy something by then. However, we are trying to decide if we should wait to see how this virus thing plays out. We are not worried for our job security, and we could afford the mortgage regardless of the other unit being rented out or not, but our closing costs and down payment would leave us with about 4 months reserve. But I also like to trust numbers and feel a deal is a deal and I don't think the seller will go any further down in price regardless of the outcome of the virus as I know what they paid for it and roughly how much money in renovations they spent and with our current offer they will hardly break even. What is everyone's thoughts??

Hello!

I am looking to submit an offer today on a unit for roughly 15% below asking price.  The unit has been on the market for the asking price for the past 3 months.  I already did my comps and multiple units within the area sold recently (within past 6 months) for my offer price.  However, I would still like to make my offer appear stronger since I am offering less than asking.  I am going to attach a personal letter to the offer, along with the comps I found.  I was thinking of offering a higher earnest money (~3%), no appraisal contingency and maybe even a shorter financing contingency as we are already pre-approved for well over the asking the price and the lender advised they could make it happen.  Any other thoughts on how to make it stronger while also protecting myself?

Thanks!