All Forum Posts by: Chris Troutner

@Dan Maciejewski, I'm looking at a commercial property in St. Pete Beach where they are suggesting they are grandfathered in, but wondering if that goes away once the property is sold to a new owner. Would you know anything about that?  Thanks for the info too. Very helpful.

Hi! I have a potential Subject To deal in Florida. I have never done a subject, just regular off-market purchases. I have researched them and I have contract templates, but wanted some advice please. The seller basically owes what the house is worth. They have two mortgages one small construction loan and a main mortgage that is an Interest-Only ARM that resets in about 4 years. Payments on both loans in total (including insurance and taxes) about $530. Property could rent easily for $1100 to $1200, or maybe a little more, so there is a nice spread. I would keep as a buy and hold. The house may need some work to make it rent-ready (haven't seen it yet), but likely not much money to make ready as it is occupied now by a tenant that is moving out. My concern is the I/O ARM. What are potential pitfalls?

Thanks @Stephanie P.. All issues resolved. Appreciate the info!

Thanks Tom. It was a brief conversation with the attorney. He may have assumed i was purchasing the property in my name rather than the corporation.  

Not an issue for me, but could be penalties for my private investor (holding a mortgage and no lender license). So terms of private lending, it may scare some lenders off. The area in FL where I invest it is fairly common to have a promissory note and provide a mortgage as another layer of security for the lender.  @Tom Gimer you are right - MD is very restrictive.  Easier to do business in FL.

I have a private lender lined up for a flip in Hagerstown, MD.  Was going to do a Promissory Note secured by a mortgage. Since all of my investing has been outside the state of MD, I wanted to have a local attorney review the Note. He is telling me MD has some restrictions on private lenders, i.e. once a mortgage is introduced the lender has to be licensed. Is this true? Not that I doubt the attorney, I just can't believe MD is so restrictive.

Thanks @Ross Denman I too have properties in Indy and have been looking at both SFR and MF in Lafayette. They also have Subaru and Wabash National, but yes, Purdue Univ would be the biggest employer.

@Luiny Tavares. I checked my numbers and I entered the wrong property tax. It still shows 22% CoC. Here is the sample. Let me know if you can access it. https://www.biggerpockets.com/calculators/shared/501909/a44db2b9-1b06-49ec-b227-ed2adc72d473

My rental properties are in Port Richey and New Port Richey and I market to those areas as well as Pinellas County.  Sinkholes are more prevalent in Pasco County.  You have to be more careful in off-market deals because the seller may not disclose a sinkhole. I had an instance where I found a permit for an investigation and none for remediation. It turns out the owner used the insurance money to pay off the mortgage rather than repair the sinkhole.

@Luiny Tavares when I run your numbers I'm getting 28%+ CoC return. It may be you have an annual number plugged into a monthly number. I estimated $65/month in insurance and $67/month in property taxes, the rest of the numbers are based on what you posted. I'd take that deal all day. Always make sure you get an inspection and check sinkhole records just to be safe. Good Luck.

Hi @Eric S.  The contract fell through so I haven't used one for a BPO yet. I do use @Brandon M. for all my transactions in New Port Richey and Port Richey - he just doesn't do BPOs.  But he has been great to work with.

Thanks Ally - does Janina do BPOs?

Chris