All Forum Posts by: Cody Barrett

Thanks for taking a look..

Pre approved for 100k. 25% down

Property: 2/1 duplex upper lower, built in 1920. Has 1 tenant upstairs for 6 years, very clean tenant paying below market rent at 550/month. Lease is month to month.. Beautiful property really, needs some updating but no repairs. Electrical, plumbing, roof, windows were updated in 2006.

Asking: $98,000.  On the market since 11/2014 w/ an asking price of 124k. Came off the market for a month or 2 and now its back on.  

Seller: 75 years old, trying to make his portfolio smaller and easier to manage. Motivated to sell. He has some experience on me lol (1st time negotiating)

MY 1st Offer: $77,500 BUT he countered after an hour or so to 95,000.  I am going to sit on it for the night and counter tomorrow morning.  

I would love to get this property for 87,500 because even with the low amount of rent the upper is paying, it will pay for the mortgage/insurance and I can update the lower unit in the mean time.  Plus I will have more cash reserves which is a plus.  SO, any recommendations on a nice counter to get that seller closer to that 87-90k mark?  

Thanks so much!

Cody B 

That makes sense.  Thank you for the advice! 

Hello!

I have read a few posts about having your tenant have their own appliances to increase the chances of a solid long lasting tenant.  More focus would be put into making the rooms look very nice, clean, welcoming, warm etc... How do you investors feel about that? Or do you have higher returns for including appliances?

Thanks everyone,

Cody B

Interesting.  I would be curious to know if he is.  I will ask! Awesome idea.  As far as him getting out of the game totally, not 100% sure.  He said to his Agent that he is the type that will die with his boots on but definitely wants less to manage.  I get the slight impression he wants this property gone seeing he kept the lower unit unrented.  Like I said it looks really good and the work needed is updating rather than repairs.  Ill obviously have an inspector confirm this once an offer gets accepted.  But from what my repair guy said nothing major at all besides modern updating to kitchen/bath.  Lower unit does need appliances because there are none so I can maybe use that as a negotiating factor?  

Thanks again for the idea!

Cody B

@Jeremy Pace

The owner kept the lower unit unrented since he put it on the market to keep it clean and more attractable etc since he wanted to sell. If I were the current owner I would get 1400-1550 per month total between the 2 units.  Rent in the area averages 750.  Especially after I update the kitchen and bathrooms. They are fine but just need to be brought into the 21st century hah.  

Hello all!

Checking out a 2 unit duplex. 2/1 upper and lower.  The lower is not rented but the top is with rent at 550 because the owner felt bad but the unit looks great, maybe a bit of updating.  My Father has built homes and he said it is a solid structure and is very sound. Siding is newer, gutters looks good, newer roof(2006), windows are very solid. Built in 1920.  Area average is 750 on rentometer and my brother gets 700 for his units a few blocks away.  I like the price at just a tad under 100k.  Market seems to be 105k.  Blue collar neighborhood.  

About the Seller: 75 yrs old, owns a few units. Selling to downsize and slow down.  He was a janitor is whole life. Did a good job keeping up with this property. He listed it a year ago at 130.  Took it off the market for the last 2 months and just put it back up a week ago at just a tad under 100k.  

Any tips on negotiating in general?  I have a 25% downpayment but would love to really max this out if he is in a hurry to sell, which looks like it to me.  Closing cost is at 3k if that helps add to the mix.  Maybe needs 5-10k of updating max.  No appliances in the lower unit as well! (also inheriting a tenant) very very clean one too but getting away with killer rent rate at 550 lol.... 

Thanks so much,

Cody B 

Hey community!

Any RE investors in Racine/kenosha WI who have been investing in the area for a while?  I am curious to see how investing here has paid off in the long run.  How has the market here reacted with the national market over the cycle periods?  Have returns been steady through the recession?  Grew up here and would love to start making a footprint.  Lots of lower income area with prices trying to climb with the market but the economy doesn't seem to be allowing people to purchase so aggressively.  Newbie here so thanks for the insight and thought! 

Cody B 

Really neat! Welcome and dig in! I have learned so much with the little time I have spent already. Good luck in 2016!

Cody B

First time buyer here looking to start REI. Buy and hold strategy. Found a nice 2 unit multi family with both units occupied bringing in 1550/month. Asking price is 135k.. When I go for financing I will have to do an owner occupied loan because I won't get financing for an investment property because I am young and only have credit card history (all positive).. One credit union will work with me on a 20yr fixed at 4%. Too many points for a 30yr fixed they expressed. Maybe a big bank will be different? Anyway, main question here is, will the Lender require me to kick out one of the renters if I made the purchase? I assume it is illegal for me to not live in it for at least 1 year if I tell the bank that is my intention. I could be wrong. I would love to not kick anyone out and keep the rent rolling in because I live for free currently (student with awesome parents but I work part time w/ a bank) Currently have 20k to play with.

Thank you so much for your time and reading this!

Cody B 

Ahh that would be very helpful.  So were you an investor before becoming an Agent?