All Forum Posts by: Andrew Jones

HML (Hard Money Loans) are not the only way to get an Apartment Complex and unless your planning on flipping or refinancing quickly probably not the best source of financing since a Hard Money loan usually has a high interest rate.

I would look into Apartment Complexes on the MLS or Loopnet. See if you can find owner carryback or seller financing in which you put a down payment usually between 20-35% down and the seller carries the rest as a loan.

I have read many of your posts and always find them helpful. Thank you Bill.

Get a Property Manager (PM), but select carefully. Drive around the area and see homes for rent that are currently under good care of a PM. Call and Interview several property managers that you saw did a good job of maintaining property.

Keep in mind you will still need to be involved even if you have a PM.

I have a 50% split in my 6 unit. I make little to no money from laundry.

I once had a tenant that I evicted come back and steal the laundry machine. I filled a police report and they were easily found, but the machine was wrecked. The company I have a split with replaced the unit and I didn't pay anything.

Another update:

Tenant was unable to pay even after my PM spoke with his SS Payee and worked out a payment plan. So I did end up filling eviction in the second week of June using a 3rd Party for $615. I am currently awaiting the lockout date.

Just an update.

I did work something out with the tenant. I got a hold of his SS payee and worked out a agreement were he will pay his rent and an additional $50 till his balance is paid off. He is a good tenant who keeps his place clean so I was happy to work something out with him.

Thank you for the replies. Just to be clear there is no second mortgage involved. The mortgage held by the seller is the 1st and only. I did check with my tax person and he said I would be taxed on the difference. Its a good year for me to do this though because I am doing a lot of repairs on the building which will help offset the gain.

I have been asking myself this same question. The market definitely has picked up, but the rent to price ratio is still good in my market. In rental neighborhoods price greatly depends on what investment returns investors are willing to except.

Hello BP,

I purchased a 5+ unit property in the past year where the seller carried financing and he currently holds a note. He contacted me seeing if I could cash him out and he would agree to reduce the principle of the note. I am currently working with a commercial bank to get a new loan and pay the current note holder off at a reduced price. Any tax issues or hidden things I should be aware of ?

Even if you have a PM you still have to stay on top of them. Especially when you buy a distressed building that you need to stabilize which is where you will get your best deals.