All Forum Posts by: John Zuch

Six Unit Building Currently Under Contract!

Purchase Price $110k to include seller paying all closing costs.

Great potential after repair to rent to single families, but since it is located directly on the property line of Barton College in Wilson, NC., its cash flow potential is exponentially increased!

Repair Estimate at $50k and can provide a detailed list that breaks down the expenses.

The college has expressed interest in purchasing the property so our top exit strategies are to rehab and sell to the college or rehab, fill with college students, and then refinance. (We would also market it to other investors in the area.)

Call, post, or email with any questions or interest.

Hi everyone! I love the creativity and informativeness of the responses to each question posted here. So, folks, I ask you to help my husband and I through our decision making process....

Quick Facts:

We are rehabbing an apartment building with 6 units. It happens to be located basically on the campus of a local college. They had been interested in acquiring the property themselves, (they developed in a downtown location and are a little bit landlocked), but had begun a huge renovation on campus when the owner of the property finally considered selling. They dragged their feet long enough that he was tired of waiting and here we are! Right after we got it under contract, they contacted him wanting to do a walk through. They had originally been interested in having him do the renovations and then sell it to them. He's retiring, essentially, and just wants to be done with it.

That said, our current plan is to fully rehab one of the units and then approach the college and find out if they like what they see enough to sign some kind of contract...whether they want to buy, lease, etc. Otherwise, our plan is to finish the rest and then fill them with students ourselves.

None of the units currently have dishwashers and they have terrible washer/dryer placements. The washer is currently in the kitchen where a cabinet/dishwasher could go and the dryer is like 10 feet away against the dining room wall. My husband says that it is not possible to add a dishwasher if we don't move the washing machine (which will require jack-hammering up the cement floor and moving plumbing and all that -- we have a plumber friend who will help, but the cost and time involved will still be great) It might be worth mentioning that the college has said it was considering housing adjunct professors or married students there.

QUESTIONS:

Will the college expect to have dishwashers? Would that stick out like a sore thumb and severely damage our sale price if we leave that out?

Is it a must to move the washer purely for aesthetics and flow?

If the college won't sign a commitment after they see the first completed apartment, does that change our strategy, knowing it will now be a buy and hold college rental?

Any must do's or not necessaries that come to mind are welcome!

We have extensive residential remodeling experience - my husband and i are still learning what will and wont get us a return on our money...plus we don't always agree and welcome outside advice!

thanks everyone!

questions welcome!

grandfather is simply a loan cosignor. The complex sits adjacent to a local college., in a part of town that has been revamped. We are going to view the property today. The owner has said that no work needs done as of now, and local rents would support $400 a month. They are currently renting between $325-350 per unit. I imagine they could use updating. I believe we could use a line of credit to put down the down payment on a conventional loan. It sounds like the seller has been in the business for nearly 20 years but unsure yet what he owes on the property and what kind of creative financing he would consider.

it's my husbands grandfather and I'm not sure we'll convince him to accept anything...?!

also- any advice on accurately determining fair market value-- it's a town of 50,000 and I'm not sure how difficult that'll be. It's quite possible there won't be any recent comps. Also, this transaction was a for sale by owner , so we don't currently have any agents to chime in. Thanks again!

thanks to everyone so far who has chimed in- we have a co-signer now- a family member with perfect credit, assets, but all their money is tied up and would be too high a penalty to to get out. Just wanting anymore advice on what to beware of when it comes to the loan terms, possible deal breakers, etc. we come from a residential construction background and are sucking up as much knowledge as possible right now.

Hi, everyone. My husband and I are new to this site but couldn't be more impressed with what we've seen so far. We are first in line for a deal with plenty of potential but have since learned that funding will be complicated as it's a six plex. It can be rather difficult securing funding even on a solid deal when they require hefty down payments. This particular unit is in a semi rural location and the asking price is $135,000. Many of the lenders we've been contacting don't even fund commercial deals that are that small. Any suggestions? Volunteers? Guidance? Thanks!