All Forum Posts by: Alex Olson

I am looking to make my first rental home purchase, and I just got the inspection back for this 2 bed/1 bath home that I have under contract. The home is about 70 years old so I was expecting a rough report, but the major concerns noted by the inspector relate to the foundation and crawl space. I am hoping to get some advice here as to whether I negotiate with the seller to get these items addressed/remediated or if I run. Here is the verbiage of the 2 major items from the report:

"Support columns were found to be deficient as follows: The support column(s) was/were out of plumb. Leaning columns are
weakened and vulnerable to further leaning. The support column(s) was/were not properly installed and secured. Settled
footings had caused gaps at the floor joists. Repair or improvement is recommended. Full evaluation of this condition is
beyond the scope of this inspection. Consult a general contractor or professional engineer for a complete evaluation of this
condition. Repairs should be performed as deemed necessary."

"Indications of active water entry in crawlspace. standing water observed. Sump pump appears pit has no means of retaining soil and silt. Pump is surrounded by silt. Could not find sump pump outlet. Water leakage was observed around the main drain stack drain plug at crawl space."

"The growth of mold was suspected crawl space. Mold is often the result of continual or regular moisture on building
materials. Identification of mold and risk assessment is beyond the scope of this visual inspection. It is recommended that the
home be evaluated by an Industrial Hygienist or other mold specialist to determine the necessary procedure for proper clean
up."

Thanks!

@Taylor L. Thanks for the tip.

@James Wong - How has your experience with CJRE been since your last post? 

@Snehann Kapnadak- did you ultimately go with CJ? I am currently looking for Kansas City PMs

Any insights would be welcomed! 

We own a rented NYC co-op and are going to have the opportunity to pay off the mortgage in a few months. Does anyone have a lead on a lender for either a cash-out refi or HELOAN or HELOC? NCB (the original mortageholder) has told us they won't do a deal for an investment unit, period. We are are looking for $100K on an apartment valued at $400K, with a longterm, market-rate tenant in place. With no other lender in first position, it seems surreal that there's no way to tap the equity of the apartment just becasue we are not residing in it. Thank you for all of your advice and experience,

Hello, Biggerpockets community of investors, Im working on my first deal with a turnkey company. The agent gave me some recommendations of preferred lenders even though I told her I'm already working with one.  She said they would prefer if I'd work their preferred lenders. I didnt think much of it, and moved on. I figured yeah, you have your choice but I can choose my lender too right? I've had my lender send the required preapproval letter, and thenthe turnkey agent told me to work with her lender instead. I told her Ive already started the process, dont want to start over and delay getting the property. She told me she will hold the property for me if I agreed to work with her lender. Is this a common practice, or even ethical? Should I run? Not sure what to do now? I appreciate your advise, as Im so new to all this. 

Investment Info:

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

Purchase price: $85,000
Cash invested: $60,000

Crazy cat lady duplex. This is going to be our most ambitious real estate project yet. This is a 1960's all brick duplex. It was originally build as a mother in law property with two identical 1200sqrft 2 Bedroom/1 Bath units. It was most recently occupied by the original owner who had cats. The place reeks of cat urine. She has moved to an assisted living facility and we purchased it from the family.

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

With 1200sqrft to work with there is more potential in the property than just a 2BR/1BA. It has a half-assed carport conversion adding an unofficial 3rd bedroom. Our plan is to totally gut the house removing all the dated wood paneling, kitchen cabinets and bathrooms. We will rebuild as a 4 bedroom/ 2Bath with laundry. This will make the property family friendly in keeping with the residential neighborhood.

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

Found on Zillow search. Due to the poor condition of the property it would not qualify for bank financing. We thought we would be to only cash bidder so we came in super aggressive on price. We lost out on the deal initially. During inspection period the other buyer discovered a gas leak and backed out. We came back with a slightly hire price and got it under contract. Seller fixed the gas leak for $195.

How did you finance this deal?

All cash from cask-out refi on another property.

How did you add value to the deal?

We plan on doing a total gut of the interior converting the carport into another bedroom, bath/laundry and living room. The old living room becomes a 4th bedroom.

Since this is a bigger project than we have done before we plan on hiring a contractor to do the major work; demo, framing, electrical, plumbing, and sheet rock. My wife and I will do the finish work with new kitchen cabinets, new bath, flooring and paint. We have budgeted $60,000 and 6 months for the project.

What was the outcome?

After reno is complete and we have the property fully rented we plan on doing a cash-out refinance and go find another deal. BTW the cash for this property comes from a cash-out refinance of a 4-plex we purchased with 1031 exchange funds in September of 2019. The same capital has been cycled through two properties in a year. Gota love the BRRRR Strategy!

All-in cost $145,000
ARV estimate $225,000
Rents $2200-2400

Lessons learned? Challenges?

Perseverance. Even if you don't get the deal on the first round of negotiations don't give up.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Angela Kennedy was our agent. This is the second property we've purchased with her help.

Thats great information! @Dave Foster Thank you... I've given it more thought and will more than likely complete my sales before making my purchase but it's good to know that option is available... I am a little unsure about having to do 3 separate exchanges though when purchasing a single property. I will look for posts regarding this to boost my knowledge. Thanks again for the info...

Hello All,

My parents are currently working through their first 1031 exchange and have run into a brick wall of 4-plex or less. My question: are there any lenders that will write a mortgage for a 6 unit rental property in Colorado on a 30 year fixed rate? We have been told that anything more than 4 units requires a commercial loan and commercial loans are usually only written with an ARM. Is that true?

Thanks for all your help, kind people of BB

Hi all, I have been looking to invest in the Orlando market and its surrounding areas for awhile (open to other areas). I am looking for cashflow investments now, not really for appreciation. Which areas should I be looking for in Orlando or its surrounding areas?

How is Florida/Orlandos RE market right now? How are PM's in the area?

Thank you,
Greg

Hello everyone. I am an out state buy and hold real estate investor from Orange County, CA. Couldn't get the numbers to work in my backyard so I went to Las Vegas, NV. About 2 years later I find myself in the same situation so I decided to look elsewhere. Today, I am in KCMO!!!!

It is back to basics and it's team building time again.

Right now I am seeking a Realtor to represent me on some properties I am interested in and/or some pocket listings. BTW, I must add that I am transitioning from SFR into multifamily; starting with smaller multifamily (1 - 4 doors) first to get my feet wet. And I am not fazed by "ugly" properties; the uglier the better. The "bones" and the numbers are what matter most to me.

I hope I can connect with someone in this forum to get the ball rolling.

Cheers,

Eric