All Forum Posts by: Bob Derwin

I have a commercial property with 4 tenants sharing gas and electric (water is paid by one tenant because his business uses 90% of the water).  I divide the gas and electricity among the 4 tenants based on sqare footage.  The bills come to me and I pay them.  I provide copies of the paid bills and invoice each tenant monthly with a bill that shows their base rent and pro rated costs for gas and electric.  The only thing I dislike about this solution is the rents are paid in advance, but the utilities are in arrears.

@Anton Gladden with only 10K then your financing options would be FHA or creative financing (seller finance, private money, hard money).  Any of these these may be tight with only 10K, but it's not impossible either.  Just remember, there are other potential costs when you reach closing that can eat away at that 10K (inspections, appraisal, title insurance, ect ...)  Also, you really should have some cash in reserves to address any bigger ticket maintenance items that may occur after you have a renter in place.  Best of Luck to you.

I'm not a lawyer.  I certainly don't know if this is even applicable with a sewer system.  But if that septic system has been in place for decades, you may have the right for continued use (even if it is on the neighbors property), via adverse posession.

10K in cash is probably a little light.  What price range are you looking in?  Do you have other funds for cash reserves?  If not, what happens if you spend the 10K acquiring a property and a month in you have a major repair?  I would continue to accumulate cash until you are in a better financial position to purchase.  

Unfortunately your contract died with the seller.  The home is now part of the sellers estate.  If they still decide to sell the home in the process of settling the estate, if it makes financial sense, you could try other offer a bit more cash.

If the bank is requiring you to remove the tank and fix the leak, he may have the same issue with any future buyers.  If you would just like for him to remove tank/fix l eak and he refuses, I'm not sure that there is anything you can do.  In a negotiation, you usually have to give something in order to get something in return.

Same as when I use financing.  If I purchase with cash, after rehab, I want to pull 75% of the value back out in cash.  If it won't cash flow 200/door on a 15 year note, I don't buy.

It certainly sounds like you need an agent to represent you and mentor you through the process.

ARV - Rehab & Holding Costs - Your Profit = Max Offer

I got out of all debt except my home mortgage, then began investing ...