All Forum Posts by: Andy B.

Ugly lease - but the repair section says that the disposalmis Tenant's responsibility so the Tenant cannot withhold rent for Landlord's failure to fix it.

Okay, so I drove past the place last night after work and it is a bit rougher than I expected. Also, for several blocks, there is nothing but small apartment complexes.

So, the demand for the area is probably pretty low with all the competition and the complex is pretty tired looking from the outside, so I would imagine there are some pretty big repair expenses waiting.

Thanks for all of the input.

I'm not really sure of my plan yet. I'm leaning towards a buy and hold plan, but I'm still weighing the options. Lots of info out there for me to check first.

thanks for the welcome everyone - I've been busy reading and reading on all the topics that interest me -- lots of stuff to be found.

Greg - let me know about a DFW gathering if it happens, I'd be interested.

Thanks guys - it is good to hear what the more experienced guys are thinking when looking at numbers.

I was making up loan number and guessing high just to see a "worst case" - I also factored in a 5% vacancy and had a management fee added (deleted my work now so can't remember what number is used for that).

The place is in a rough neighborhood, but I didn't think it was horrible - but I haven't driven this street, just nearby areas.

I'm think it is a combo of #1 and #3 with a bit of #4 thrown in

So, I'm new to BP and new to RE investing and am trying to figure out the way of things. I tend to see "deals" and think that if I can find it, why hasn't someone else - so there must be something wrong with my so called "deal".

Here is an example:

17 unit complex
Built 1954
Brick exterior
All units are 1/1
$575 per unit
Taxes listed as $9,264
some covered parking
on the market for 119 days

Asking $375,000

Pictures make it seem like decent repair and listing says "mostly occupied"

So why hasn't someone made a run at this one? The numbers look okay -- if I did it right, using the list price as the purchase price, Cap Rate is 11% with a Cash Flow of $9,100 (assuming 80% LTV w/ 10% interest rate).

I assume some repairs will be needed and vacancies might be a little higher due to the 1/1 situation, but the rents appear to be on par with what I have been seeing for the neighborhood. Further investigation would be done should I pursue, but I just seem to wonder if investigating is really worth it since everyone should have seen this by now...

So what am I missing? Numbers too low or am I not asking the right questions?

I wouldn't charge a late fee. Just think of getting it challenged - you cannot prove it was late, so how do you defend yourself in court (should it get there)?

Hi Everyone!

I'm Andy. I'm a real estate attorney specializing in retail leasing - mostly from the tenant side. I have also worked on commercial purchases - land, apartments, shopping centers, etc.

I have always enjoyed working in real estate and have gradually decided I should start doing the deals rather than working on other people's deals. Now I just have to figure out what method to do and get over the fear and do it.

Hopefully I can find some inspiration here to get me over the hump.

I know that this topic is a little old, but I thought I'd chime in in regards to using the security to cover the last month's rent:

The trouble with agreeing to apply the deposit as the last month of rent is that many times you will find damage after the tenant moves out and you now no longer have a security deposit to cover the repairs.