All Forum Posts by: Ben Beaudoin

@LeAnn Riley thank you very much for the helpful response! I am getting some good learning lessons on this deal so its not all bad. The tenant was in the building when I purchased it but had not yet made a rent payment to the previous owner and it was only ever a verbal lease. I had tried to help them apply for rental assistance but they are hardly responsive and make excuses for why they cant do it.  To add to the mess the tenants unit was flagged in the county rental inspection as a fire hazard with the boxes and crap they have all over the place. In a normal rental environment I have many grounds for eviction but I have been told with covid I still cannon evict until the moratorium is over.

I purchased a duplex a few months ago with existing tenants, the lower unit tenant was not on a lease and is currently several months behind on rent, not related to covid. Water backed up in that unit this week and the plumbing company is saying the main line galvanized pipe is collapsed and 48' of it needs to be replaced, the concrete will need to be broken up and re-poured, the repair estimate they provided was for $15,000. So now that tenant will have no plumbing or much of a livable area for at-least a couple weeks until all repairs are made. If there is no lease in place, they are behind several months in rent and the unit is unlivable, I am still told from my property manager that we cannon remove the tenant due to the moratorium and that the unlivable unit falls back on us for liability, does anyone know if this is true?

Thanks Myron! Did you encounter any challenges you were not expecting with the older home flip?

Im looking at BRRRing a 1875 built single family home, structure seems to be built very solid, mostly interior cosmetic repairs needed. Does the old age limit the ARV for when I go to Refinance? Having trouble finding accurate comps that fit the bill for the age, size and updates that would be applied.

Thanks Armin Nazarinia! The upper unit is 2 bed 1 bath and the lower unit is 1 bed 1 bath, upon purchase the rents were $775 and $575 with landlord paying all utilities. Both tenants understood their rents were well under rent in the area so we worked out new leases with rent increases to $1050 and $800 (still under average rents in the area)  as well as they pay their own electric. We are fixing some minor maintenance items and replacing the washer and drier but the main value add was raising rents to market value.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Saint Paul.

Purchase price: $165,000
Cash invested: $45,000

Class C Property with lower than market rents, in good shape for age of place, tenants and previous owner took good care

What made you interested in investing in this type of deal?

Knew the area some and that this neighborhood was one of the better ones in the area

How did you find this deal and how did you negotiate it?

Realtor

How did you finance this deal?

Conventional Financing

How did you add value to the deal?

Increased Rents, new washer and drier, tenants pay electric

What was the outcome?

Property cashflows $100+ per door

Lessons learned? Challenges?

Conventional financing can be a tedious process for the first time on an investment property

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Saint Paul.

Purchase price: $165,000
Cash invested: $45,000

What made you interested in investing in this type of deal?

Class C Property with lower than market rents, in good shape for older place

How did you find this deal and how did you negotiate it?

Realtor

How did you finance this deal?

Conventional Financing

How did you add value to the deal?

Increased Rents, new washer and drier, tenants pay electric

What was the outcome?

Property cashflows $100+ per door

Lessons learned? Challenges?

Conventional financing can be a tedious process for the first time on an investment property

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Saint Paul.

Purchase price: $165,000
Cash invested: $45,000

What made you interested in investing in this type of deal?

Class C Property with lower than market rents, in good shape for older place

How did you find this deal and how did you negotiate it?

Realtor

How did you finance this deal?

Conventional Financing

How did you add value to the deal?

Increased Rents, new washer and drier, tenants pay electric

What was the outcome?

Property cashflows $100+ per door

Lessons learned? Challenges?

Conventional financing can be a tedious process for the first time on an investment property