All Forum Posts by: Chris Svendsen

 Thanks for input.  Financing is hurdle I am wondering about for sure as this is so small limits options.  I have a local bank in area I used for another unit that does commercial loans, so hoping I will get some help from them.  Thanks for offer of help I may be reaching out at some time.

I received a text from my realator in PA yesterday that he just got a listing for an 11 unit apartment complex and wanted to know if I was interested.  Heck yeah I am!  Not on market yet, have a couple weeks till hits market, but I am getting into building this weekend to do a walk through of propety and look into the units.  Currently 7 units are rented and 4 others are in need of rehab and have been used as storage by the property owner.  So far know nothing other than its a brick building, rubber roof, has had new heating system installed in last couple of years and current rents is about 3100 a month.  

I am making a checklist of items to look at in each unit, covering all items for unit from flooring type, need to replace, overall condition of unit, specific items such as doors, windows, cabinets, etc.  Will be looking at each unit of what is going to take to get to my standard when rolls unit over.  Same with the vacant units.  For the property I will be checking out mechanicals, structure, piping types, drain piping, HVAC system, overall property condition, and work needed.  I will have a contractor with me to look at structure of building and this will not be the only inspection I do but anything big you can suggest I keep and eye out for would be great.  I be doing this saturday morning.  If I get this list finished tomorrow I will post up for critique.  Also, if any tenants are in units is it acceptable to ask them if they have any concerns with property that need to be addressed?  At time current residents seem to be very forthcoming with info adn can find out a lot from someone if you give them the opportunity to speak. 

Thanks in advance for any advice you can give.  

good luck.  Keep us posted on success we all like hearing when other achieve their goals.

I did on our investment property in va through penfed federal credot union.  80 percent ltv ratio.  No idea about CA but look online sure you can find out easily.  Very fast and easy experience.

I would go for a HELOC now on primary so financing is ready to go when something turns up. Being primary residence you can get better rates and larger amounts. Thinking of doing my primary for that exact reason. Right now things are good and banks willing to extend credit, better lock in before to late. I think change is coming in next year or two so better to prepare now. Good luck with it. Sure something will turn up when you least expect it.

@Kevin Means what part of PA? How large of a place you looking for?  Have any properties under your portfolio yet?  

I am looking at multi family units that need rehab. What I am doing is took out HELOC on other property I have to use as capital for renovations, then plan is to refi to pay myself back and lock property in for consistent income production. My HELOC is variable rate so sooner I pay that off better for financials. Now this is all in theory as haven't been able to find suitible property yet but actively working on it.

pull out all the carpet and asses damage to wood under floors.  If severly damaged or rotted pull out bad areas of subfloor.  If wood sound I would wash it all down really good in an urine nutrilizer of some sorts then let dry for a few days.  Afterwards seal up floors with encapsulating paint such as Kilz to trap in any remaining odor.  May also be able to use some deck wash which usually high in bleach content to help kill smells.  Did the Kilz paint in parents personal house and kept smell locked away well.

Thanks Matt. Basic numbers are purchased for 108k, put in about 35k rehab cost, did a appraisal after rehad and appraised for 225k, so got a HELOC on property to have access to 80k of cash for other projects. Rented property out after a couple of weeks on market to a nice family for $1450 a month. Mortgage payment is under $700 a month with taxes and insurance. Self managing, beign rehabed house been zero issues. So far been a great first start. Looking for 3rd property now.

https://www.hud.gov/topics/homes_for_sale is a good place to start. Get a realtor who understands HUD process as can be a little quirky.

I think your closing cost are way too low, probably be aroud $6k, and are repairs accurate?  if so seems like an ok deal to me.