All Forum Posts by: Ben Kappel

So first to start I’ve read the other forums and I already know changing an offer price is bad practice after the inspection normally. 

My question is for the long distance investors offering on multi family without ever seeing the property.

 My price offered was based on the units being relatively updated (word of realtor) and only saw pics of the one vacant updated unit.  
The inspection showed the other units have not been updated since the mid 70’s and will need major overhauls during their next vacancy.  (We’re taking about still having those 70’s yellow appliances) 
The seller will most likely take care of the multiple active leaks and other problems from the inspection.    

My question is, is it still bad faith to negotiate price now that I know the building looks like a money pit of updating for the foreseeable future and not the deal I anticipated during the discussions.  

Don’t be too afraid of a 5-10over30 loan.  I had one lender want 30% for conventional.  Talked to another and got a place for like 17% down for a 5 over 30 loan.  In 4 years your gonna wanna refinance and pull money out for the next rental property anyway. 

Hey Ryan, Just wanted to reach out and say you should try to create a good relationship with your accountant to ask some of these questions too.   I also have reoccurring questions about different deductions, and I am able to just reach out with a phone call to get an answer.  The IRS does offer a standard mileage deduction to check on investment properties. You want to make sure your keeping proof also in case of any type of audit.  I'm sure there are many ways, but I just snap pictures of my dash and the background for my start/ arrival/ and back home.  Haven't tired the phone apps yet, but I have heard good things.  

I look forward to hearing others advice in this post also. 

Absolutely. Ill send ya a msg. 

217k for a 4plex!?! Let me know if you pass and ill snatch it up. That thing wouldn't last a day on the MLS at that price -my opinion. Idk if you would ever find one for that price again. Downtown Mandan is booming also. Get a great property manager at a slightly higher percentage and you'll maximize the rent at market and it will cash flow way better.

Definitely don’t bother with Dickinson/ Williston and rural.   I see vacancy rates going up and rent going down in the next few years, along with depreciation.  I’ve owned my personal home in Dickinson for about 6 years and would guess I have zero appreciation.    Bismarck is where I invest, solid numbers with positive growth. 

When it comes to passing the exam, I would suggest taking many,many practice tests.  I bought two other exam prep books, and went through the practice tests many times and studied very hard at the areas where I wasn't getting the right answers.  Some chapters may come easy, and others hard, but you don't really know where you are standing until you start taking some practice exams.  I passed the first try for my license earlier this year, and even though I haven't activated my license with a broker yet, its still good to have ready for when the time is right. 

I would advise against using paypal, as they charge a separate fee to collect rent. (3% I think).   I use Cozy.co and its great.  It does take 5 days for the transfer, but the additional features they have make it worth it.  Make sure whatever you do decide to use, that it is in the lease agreement. 

Hey there, I live out in Dickinson and might be able to give some input of how rural it would be if the location is on the west side of the state.  But I am also one of those pesky oil field workers tho, and also in investor. :)   I would always urge caution if its located in a really really small town. Might make it difficult to get rented out, or just have to plan on a higher than average vacancy rate. 

Feel free to reach out. 

One mans opinion, get a plan on how you plan on buying.  It could be househacking with a low down-payment, or could be buying a multifamily that needs 25% down.  The book on househacking was a great read, but nothing gets a plan moving like a plan on how much money you will need and how much money you need to save each month to reach that goal. Save, save, save. 

P.S.  The Richest man in Babylon is going to be my top book suggestion.