All Forum Posts by: Brian Campbell

I started another thread but here's what I found out.........

I met with a motivated seller tonight wanting to sell off all 12 of her rental properties. Her husband recently passed away and he ran the rentals. She is overwhelmed and wants to sell. She said she owes approx. 300K on the properties. The properties are in decent condition and I don't believe there would be a lot of deferred maintenance but I'm not certain as I haven't been through the properties. She said to make her an offer.

I've been able to put some initial numbers together and here's what I have......I believe she's hoping to sell each property for around the assessed value for county tax purposes. The total assessed value is approx. 560K. The annual tax total for the 12 properties is $11,596. Total gross monthly rent is $7,288. The rents appear to be in line with what the area brings for rent.

I believe she would be willing to sell on contract if her bank was ok with the deal.

I could sure use some advice as to what kind of deal to present to her. I am thinking it might be a good idea to make two offers: one an all cash offer, and one offer involving a contract with possibly a 2 year balloon payment.

Any ideas on how to structure potential offers for these properties would be greatly appreciated!

Thank you!

Brian

I met with a motivated seller tonight wanting to sell off all 12 of her rental properties. Her husband recently passed away and he ran the rentals. She is overwhelmed and wants to sell. She said she owes approx. 300K on the properties.  The properties are in decent condition and I don't believe there would be a lot of deferred maintenance but I'm not certain as I haven't been through the properties. She said to make her an offer.

I've been able to put some initial numbers together and here's what I have......I believe she's hoping to sell each property for around the assessed value for county tax purposes. The total assessed value is approx. 560K. The annual tax total for the 12 properties is $11,596. Total gross monthly rent is $7,288. The rents appear to be in line with what the area brings for rent.

I believe she would be willing to sell on contract if her bank was ok with the deal.

I could sure use some advice as to what kind of deal to present to her. I am thinking it might be a good idea to make two offers: one an all cash offer, and one offer involving a contract with possibly a 2 year balloon payment.

Any ideas on how to structure potential offers for these properties would be greatly appreciated!

Thank you!

Brian

Thanks Ryan! Great advice. I actually sat down with her and her husband before he passed away and we talked about me buying them. I knew the timing wasn't right because he was so sick. After he passed away, she called me and asked me if I was still interested. 

Something I didn't mention is I'm house rich and cash poor right now. I'm in the process of flipping a house and have most of our money in this house.

I will be meeting with a seller of several rental properties. Her husband just passed away and she would like to sell 12 rental properties. I will be visiting with her to find out what she needs but I'm guessing she just wants to get the cash and move on. I believe she wants to sell them for what the county assessment is on each property. I will want to have a minimum of $200 cash flow per door ( a couple of them are duplexes) after PITI. I currently own 15 rental properties and this formula has worked well for me.

What questions or information should I try to get when I sit down with this seller? I will be asking her about the possibility of me buying on contract for a year or two them paying her off. 

Could use some help here if you have any thought about questions/info I should be getting?

Thank you!

Greetings! I'm an investor from Mason City.

Hi Chase -- Would love to come to one of your meetings. I live in Mason City so wouldn't be too difficult to get there. My wife and I are also primarily buy and hold investors with 15 properties so far. However, we are venturing into flipping and just finishing up our 3rd flip. I don't think I'll be able to make this month's meeting--just too much going on next week. I am a school teacher for my regular job and my wife is getting into the distressed furniture business and selling at flea markets. Life is far from dull! Hope to meet you soon!

Brian

Is vinyl siding the cheapest way to side a home? I just bought a small rental home that has asphalt shingles for siding. It looks terrible. I am removing the shingles and will replace the siding. Please let me know if you know of a cheap alternative to put siding on a home.

Thanks!

Thank you all for your help. I can create a simple sheet for each property with columns listing those expenses I can deduct.

Thanks Stefanie. I'll check into that.

I am looking for a form to use to keep records for tax purposes. We have several rentals and I always struggle with this come this time of year. I'm looking for a one sheet form that has all the pertinent info on it my tax preparer would need.

I would be grateful if some of you could share with me what you use. 

Thanks!