All Forum Posts by: Darius Lipsey

Morning BP!!! I posted this another part of the forum, but I thought it’d be more appropriate here. Today I’m closing on my first duplex! Right now both units are vacant. The plan is to renovate unit one and get it rented. Once the first unit is rented, live in the second unit and renovate that one. The duplex is 1500 with an 2/1 upstairs and 1/1 downstairs unit that has an unfinished basement, separate meters for all utilities, built in the 1920s and is structurally solid as far as our inspections could tell us. So to my question. What would experienced investors recommend aa good value adds for the cost to #1 maximize rental income and #2 increase properties value in the eyes of an appraiser? Want to keep the property for long term, but maybe refinance and pull it some cash for another deal. Thoughts?

Morning BP!!! Today I’m closing on my first duplex! Right now both units are vacant. The plan is to renovate unit one and get it rented. Once the first unit is rented, live in the second unit and renovate that one. The duplex is 1500 with an 2/1 upstairs and 1/1 downstairs unit that has an unfinished basement, separate meters for all utilities, built in the 1920s and is structurally solid as far as our inspections could tell us. So to my question. What would experienced investors recommend are se good value adds for the cost to 1 maximize rental income and 2 increase properties value in the eyes of an appraiser? Would want to keep the property for long term, but maybe refinance and pull it some cash in a few years.

@Cheryl Butler I talked myself into being overly emotional. I was really starting to feel bad about the idea of putting someone out of a space that they’ve made feel like their home. I know legally there isn’t anything wrong with it, but from a personal standpoint this is a level of confrontation I’ve been hesitant to deal.

Alex K. I plan to occupy one of the units for a few years at least and owner occupancy is also a requirement for FHA/VA loans. Ideally other good tenants would qualify and sign a long term lease.

@Jacob Rhein @Thomas S.@Peter Sinclair @Ray Lai @Jack P. @Cara Lonsdale @Colleen F. @Justin Carpenter @Phil G.

I make the call on which tenant leaves. I think at this point I may choose to live in the unit that needs the most work first unless there is a huge difference in quality of tenant. I'm so grateful for BP. Other investors here have been a huge help in putting my emotions at ease. Thanks

I'm using an FHA loan to purchase a small multifamily as a primary residence. I have found a property that is currently 100% leased to month to month tenants. I am buying a property as my primary residence and know that I have to occupy the residence within 60 days of purchase. Is it unethical to buy a property and legally kick otherwise decent tenants out to occupy the residence?

Hey BP,

I have a duplex under contract which is being sold by an elderly woman who Is living in the larger of two units. She wants to stay where she is for undertermined of time after closing until her new living arrangement is set and has agreed to sign a lease at closing. Should I be requiring a security’s deposit from the seller and soon-to-be tenant as well?

Hey BP, What are some questions you’d ask a property management companies references to vet them out and see if they are a good fit? What questions would you ask interviewing the property management company. The duplex I’m closing on is currently being managed by a local property management company. I originally intended to manage the property myself because property managers really don’t have great reputations around here, but I am open to it and do have it figured in my number. What do you think?

Hey BP, I’m in the inspection period of my first deal. A duplex with intent to owner occupy. I’ve already gotten the whole home inspection which revealed some things I was expecting (roof with only a few good years left, old furnace and water heater) and a few things I definitely was NOT expecting (outdated electric on 60 AMP service). Not sure how to handle moving forward with this deal. I had most of the things that needed to be fixed in my numbers, but even the roof is older than I had planned for. I really want to ask for the roof repair and the electrical to be updated and brought up to code. What’s a good way to ask without putting the seller on too much of a defensive? Or should I just lower my offer to compensate? Curious as to how some other investors would handle this situation.

@Christine Kankowski I was going to have specialist look at the plumbing, roof, HVAC, and electrical regardless of what the home inspector regardless. This is my first purchase and I'd just like to have the piece of mind. 

For example if the home inspector says to have at the roof looked at with everything else being fine as is. I would want to have a pro look at the roof, but still the electrical, plumbing, and HVAC. Have you had buyers do that before? Or have you been the listing agent in a similar scenario?