All Forum Posts by: Derone Patterson
Derone Patterson has started 28 posts and replied 65 times.
Originally posted by @Account Closed:
Derone,
The appraiser should have full access to the property in order to do the appraisal properly.
Otherwise, assumptions have to be made as to the features not directly observed.
If the seller refuses to allow the appraiser full access, that is a flag, which you should use to renegotiate your purchase price.
good luck,
kevin
Thanks, I will talk to my agent about doing that.
I'm buying a duplex as an owner occupier. I'm waiting for the appraisal which I payed for and the appraiser is unable to get in the second unit holding up the process. Has anyone ever experienced appraisals taking too long. How long does it take normally on a duplex? And what is the appraiser really doing? Thanks for reading
Originally posted by @Jeff Copeland:
I agree with @Adrian Smude, your post isn't clear. Are you saying you're buying a duplex with two long term tenants, and planning to kick one of them out so you can owner occupy? If that's the case, you really need to wait until the end of their lease term. The change in ownership most likely does not affect the terms of their lease, and you may need to familiarize yourself with PA's landlord-tenant laws: https://www.thelpa.com/PA_landlord_tenant_act.pdf
Ok thanks, I do plan on kicking one out. I just was saying, is it a good idea to inherit tenants?
Originally posted by @Adrian Smude:
are you saying the basement can be a third unit? If so move there.
To be a law abiding citizen you have to move in and typically live there for one year, check the terms in the paperwork you sign at closing. Personally if both tenants seem to be equally easy to work with, pay on time, and long term then I would move into the lower rent unit. Are they on a lease? How much time is left on their lease?
They are on a month to month lease and the basement is livable but has no meter. I do know that one of the tenant has to leave in the next 45 days. I do plan on renovating the basement in about 6 months after I move in though. But for right now because I will be the home owner, inheriting tenants scares me a little bit.
Greetings everyone, as a first time home buyer I am I the process of buying a duplex. Soon to be moving in soon. My question is, there are two long term tenants living there. Its a nice area. I know my mortgage will be covered by the two bed room unit up stairs. Downstairs has one bed room and basement has a separate entrance that has a full bath but no kitchen. Both tenants said they rather stay, but I have to occupy one unit. Is it a good idea to keep one tenant there? Thanks for reading.
Post: Multi-family housing
- Investor
- Philadelphia, PA
- Posts 65
- Votes 5
Originally posted by @Amber Koontz:
That is great advice. I'm currently factoring that into the equation. On the surface we just see extra income, but you must think about vacancy and possibly taking on all expenses. I'm still undecided on duplex or triplex for my first investment. I figure running the numbers will help me make that decision. Good Luck!
Yeah Thanks, I'm hoping my agent can help me make the right decision. And your right about the numbers, if the numbers are good, it shouldn't matter.
Post: Multi-family housing
- Investor
- Philadelphia, PA
- Posts 65
- Votes 5
Originally posted by @Michael R.:
If you had 3 or 4 units and all three were vacant 100% of your rent would be gone too. Either way, whatever you buy you should be able to afford on your own.
It takes the same amount of work to close on a duplex as it does a tri or a quad....know what I mean?
If you don't know what you want you should step back and make that choice. First question, what is your real estate strategy (i.e. what do you invest in?) and what do you want from REI (i.e. cash flow?)
good info thanks!
Post: Multi-family housing
- Investor
- Philadelphia, PA
- Posts 65
- Votes 5
Originally posted by @Ames Foley:
I agree with Michael R. You should plan for the worst (100% vacant) and work to make the best. Start with what you can afford. Build up savings for your next property. Move into the next level and rent your first. May take a bit longer but less risky
Thanks for the advice.
Post: Multi-family housing
- Investor
- Philadelphia, PA
- Posts 65
- Votes 5
Hi, I need some advice on what to buy as a owner occupier. (First time home buyer). I'm in the process of house hunting with my realtor. I'm not sure what to buy. I'm stuck in between a duplex, triplex or quad. I'm unsure with a duplex because if I have vacancy, 100% of my rent is gone. I was thinking a triplex though. "Thanks for reading this"
Originally posted by @Mehran K.:
Grats on digging into a good situation by looking for a 2/3 unit property to be an owner occupant. I agree with the current owner that you can't find a better tenant! You can try to move into the place and let the current tenant know that you won't raise the rent immediately. But you can let her know you'll increase by 10% (to $495) within 12 months and keep it at that. Not sure exactly what her income is and whether or not she can afford the 10% increase. Just an idea!
This is all assuming the rest of the numbers makes sense. I currently have a tenant in a duplex that pays $525 a month and market rent is $650 easily. He pays every month and has been there for years. I eventually will increase the rent a bit, but I prefer to have that unit occupied while I work on some other ones.
Thanks, that's a good idea.