All Forum Posts by: Chris Moshier

Thank you all for your advice, I appreciate the multiple responses. I've walked away from the deal. Thank you all so much. I think I may have been letting the idea of just doing something and getting started cloud my judgment regarding this deal.

Thank you, I appreciate the insight Russell.

Thank you both for your input. @J Scott, the purchase price agreed upon was 57,500.  The reduction of 6250 would put my final purchase price to 51,250.  The sellers will go no lower.  @Paul Ferraro, I'm not quite sure what you mean about reading what I wrote.  Thank you though!

I forgot to mention.  The third unit is not a real possibility, as the entrance is in the middle of the second floor apartment.  This is also an estate sale and the home is 1900's construction.  

Hi there! I'm Chris, and I'm under contract for my first home purchase (A duplex, which I plan on owner occupying and renting half).  I'll make this as short and sweet as possible.  I got a rough inspection back (Major repairs 9300 including MINOR foundation issues, major electrical and plumbing issues).  The roof is half new and half 4 layers of shingle.  The property is in a fine neighborhood, very low crime.  I'm paying a low cost per square foot, as the propery is about 2200, with a final purchase price of 51,250 offered by the sellers.

My concerns:  The sellers have offered to take 6200 off the purchase price due to the inspection.  This is their final offer.  The 9300 of major repairs does not include the 40 year old furnace, or half new half crap roof.  The entire place needs updated, but it has nice hardwood floors and otherwise very few issues.  I'm estimating about 12k in repairs alone before I even get into renovating, and I fear that this will wipe out my investment savings and then some.  I have about 14k cash on hand, 4500 of which will go away at closing. The price of this home started at 64000 and I'm down to 51,000.  I think it will appraise for close to 70 as-is.  

My hang up here is not that I'm scared by mild inspection results, but the results are major: corroded and damaged pipes and stacks, a 150 amp panel that needs replaced, knob and tube wiring on 2nd floor, uncapped gas lines, improper supports for joists, water damage between attached garage and house, etc etc etc.

 The roof doesnt leak that I know of, but the owner "Tried" to put a 3rd unit in the attic.  it is about 50% finished with electrical and insulation, but i couldn't see the condition of the roof.  I know I can get 700 including utilities for the upstairs, and will live downstairs and pay myself 700 a month in rent. 

 The deal analysis seemed pretty favorable (renter covers mtg, plus almost all utils).  I included vacancy capex repairs etc.  If the unit was double occupied it would cashflow about 300 a month.  My question is, should I deal with 10-12k in repairs in order to make this deal happen? I'm about 13k below what the asking price was, but I feel like I might be jumping in the deep end before my feet have been wet.  I'm not sure what to do.  Any advice appreciated, I'll try to be prompt if anyone requests info. Location is in upstate NY.  23$ a square foot roughly for this house seems like a steal, avg for area is 54.  Any advice greatly appreciated! Thanks!

By the way, I am not seeking a mentor in my post...just looking to network! Thank you!

Hi everyone! I'm a 30 year old man named Chris M living in Corning, NY. I'm looking to start my adventures in real estate by house hacking a multi family unit in Corning, and am very excited about it! I'm an Army veteran and will be using a VA loan for my first purchase, and hope to cash out refi and buy another multifamily once I've learned the ropes of deal evaluation and land lording. I'm learning and absorbing all I can, and am extraordinarily happy that I've found this valuable resource! I hope to buy my first multi family in early 2016, so I'd love to connect with anyone from Corning as I don't know the market yet. I will be uploading a picture in the near future, and look forward to reading every post I can. Nice to meet everyone, this appears to be a wonderful community!