All Forum Posts by: Erin K.

So we bought a duplex with a mobile home on the back side of the lot. The property was an REO and had been vacant for several years. The electric company required us to get new entrance electric and weather heads for the house before they will turn it on. I asked our electrician to check on the mobile home electric while he was there doing those repairs, and see if it needed anything. In looking at it, he determined that the electric to the mobile home is on. Anyone run into this before? I thought that for electric, there is a minimum monthly charge even if there is no usage. Wondering where the bill would be going all these years. I guess maybe if I'm wrong, and there is no bill generated if no usage, then maybe the account is in the name of the prior owner and no bill has been sent all this time so they didn't realize it's still in their names.

Thoughts???

*.

We are looking at a multi-family property that has been owned by the current owners for about 30 years, so they are facing large capital gains on the sale.  Any suggestions for a way to structure the sale with owner financing in a way that minimizes their tax hit (and might be attractive to us as buyers at the same time)?  

and insurance about $1k a year - just noticed typo in original post.  

The current electric is only 60 amp with fuse box and our insurance co will only insure fuse box system that is at least 100 amp.  Thus the repairs to put in breaker boxes and upgrade entrance electric, etc.  

Any others care to chime in with thoughts as to value? We have this property under contract and need to decide by Monday whether to move forward. I had been watching this property for a while and the price suddenly dropped by $40k and we made offer that was accepted. We are in inspection period and based on electrical systems needing $4k in work, need to decide whether to pursue or not.  Thanks!

As far as the low rents, I think that is more a factor of the area we live in generally. I have nice duplexes that I rent for only $350 for a 1BR unit, $375 for a 2BR.  Cost of living is very low around here. In addition, I don't think the current owner has been very aggressive about keeping rent as high as it could be.  

Thanks for your thoughts! 

4 unit apartment building - current rents are $480 (2BR), $435, $425, and $365 (all 1BRs).  Landlord pays for trash ($840/yr) and water/sewer, which is $125/month.  Property taxes are $1,400/yr.  Insurance will be about $k/yr.  We had some inspections done and the electric is shot and I have a quote for $4k in necessary repairs. Plumbing is in okay shape, but definitely will be some issues to deal with in the future.  I don't think there is a lot in the way of immediately necessary repairs to the apartments themselves.   

The $365/mo tenant has been there for a long time, and, while he always pays his rent on time they say, he is a major hoarder, and mentally unstable. Has pictures of women's underwear ads taped all over the apartment, and the place is a filthy, packed mess.  When we were doing the electric inspection, he thought we were going to be asking to look in his apartment again, so he stood at the top of the steps and started screaming, "I'M TIRED OF THIS F-ING SH!#!!!"  Would want to get rid of him asap if we buy it.  He's on month-to-month lease at this point.  Could also then increase rent amount for new tenant.  

Not sure what I'm leaving out that would be helpful, but looking for thoughts as to value. 

Thanks! 

This is an interesting thread to me. I am a property manager as well as a bankruptcy attorney (it's one of several practice areas for me) and I will sometimes give *preference* to someone just out of bankruptcy. They've just wiped the slate clean so their income is available to pay rent - no credit card bills or $1k+ utility bills out there competing for their money so they can pay rent! Additionally, someone just out of bankruptcy can't file another Chapter 7 for 8 years. So they are, in some ways, a much better risk than someone who has NOT filed but has other debt out there but could file BK any day. So anyway, you guys keep avoiding them as tenants and it keeps my pool of potential tenants bigger. LOL

Yes

Generally "as is" means just that. You get what you see, and you better inspect because the seller is not obligated to tell you the problems. The inspection period is usually just an "out" for you if you decide there are problems you aren't willing to assume. In other words, when a seller specifies "as is" the understanding is almost always that they aren't willing to adjust price for problems. And it also almost always means that there are issues that will need addressed. Good luck!