All Forum Posts by: Rick L.

Thanks for your response. I'll know more on Monday after the contractors walk through the building.

I've been considering using cheap non-licensed labor labor for demo of rehab projects. I could potentially get workers to tear stuff out at $8/hr vs $30/hr.

However, I've been wondering whether a general liability insurance policy would cover an injury related to one of these workers on the property.

I'm interested in a foreclosed four family apartment building owned by Fannie Mae. From the pictures, it appears to be in pretty bad shape and will probably require a total gut rehab. Although, I am walking through it with my team of contractor on Monday (two general contractors, electrician, roofer).

Fannie Mae is asking 50k for the property. How do they determine the asking price of the property in this condition? I know everything is negotiable, but is Fannie Mae really open to negotiations? How do I get leverage and negotiate on price with the Feds?

I don't want to let this property slip away and want to offer a competive price.

Oops! I will make the necessary corrections and upload the edited document soon. Thanks for notifying me!

I've been searching the market in here in STL for 2-4 four family deals that pass the 50% rule with 20% down payment. I haven't come across any yet.

I have been able to run some numbers where all expenses would be paid with half of the gross monthly income, but the property wouldn't cashflow $100/door. The $100/door has been my "white unicorn" lol.

I suppose I could always increase my down payment, but I think that's trying too hard to justify the property purchase. Am I just looking in all the wrong areas. I've been looking in A, B, and C type neighborhoods. Or is the current market getting out of control?

It's really frustrating!

Wow! Awesome. Thank you so much!

Mary B. what's a BPO?

In addition to everyting you stated, ask for a copy of the last 3-5 years of schedule E. It's a tax form that list's all the profit and expenses for the property

Mark, for later reading.

I have a LLC registered in IA, but I do business and it is registered as a foreign corporation in MO. From my limited knowledge and experience, the cons would be that you have to maintain the LLC in both states. Meaning, you have to keep current corporate minutes, etc for each state. Which isn't a big deal, just more hassle and small fees every year depending on your state's specific rules.