All Forum Posts by: Behrooz K.

There is a short sale that I'm interested in. It's listed at 50% of comps. The picture shows the windows boarded up.  I contacted the listing agent to go see it with my contractor. He was only reachable via text and said: No access permitted at the property - liability for the homeowner to let people enter freely. Offers are to be made all cash as is. 

What do you guys think? I was thinking to bid for just the land and assume that it has to be demolished and rebuilt. I'm going to drive by this weekend and see it from the outside. How do I find out who the lean holder is and how much is owed? Any advice is appreciated. 

Looks great. Congrats! 

What does "subject to tenancy" means?

only $350k asking subject to tenancy all cash deal needs to close within 30 days call for more info Ben

Welcome Iraj! 

Hey Charles, I couldn't find your blog. Can you post a link to it?

Great job. Looks great. I hope to accomplish something similar soon. 

@Eddy Berzak Seems like a good deal to have it all renovated now. you would probably get a better deal from a contractor if you do it all together rather than each unit separately. However if that would put you in financial difficulty I would go with your other option of renting out 1 or 2. And when their lease is up update the other units. Or one unit in second year and the last unit in the third year. 

The option of moving the tenants to updated unit is not really going to workout because they would have to pay $1000 extra. Unless they like the updates so much that they don't mind paying extra. 

As for short term lease it's tough, if you use a broker they'll want the full year commission. But if you list it yourself and you can say 'short term lease ok.' There are very few short term leases available and you may find someone looking for one. This way you can get everything done within a year. 

@Nick Patel 5% vacancy means it will be vacant 5% of the time. So 5% of 365 days is 18 days. 5% of your gross annual income gives you annualized vacancy cost. 5% of your gross monthly income gives your monthly. So your annual vacancy is $870. Divide by 12 to get 72.5. Of course if you are lucky to find a tenant who stays for a few years you wont incur this cost every year. 

Same with repairs at 5% is 72.5. 

CapEx is large ticket items that happen less frequently. Like having to replace the roof, boiler, new appliances, etc. See : How to Estimate Future CapEx Expenses on a Rental Property

Welcome @David Carney. I just joined a few weeks ago. Lots of help here! I'm loving it.