All Forum Posts by: Jim Burns

I invest only in lower income areas (not straight up warzones). Yes there is a learning curve and yes the lifestyle of your tenants may shock you at first. These are people too though.

Just like middle income folks there are good and bad. Properly screened ive had no problems so far. In fact in some ways I like it better since all the properties I've purchased have some kind of deffered maintenance that a middle class renter would not put up with, the lower income people are happy to have a nice clean place to live though and arent as picky. this gives me some extra breathing room and income flowing in while I complete the work.

please do not buy this place, this is an awful deal

those expenses are unfathomable

make the 20 minute drive up to buffalo and invest in the west side

just got a 4 unit here under contract at 73k with $2465/ mo rents seperate utilities... I pay only water and garbage.

on top of that I get a fancy old victorian house that is likely to appriciate heavily in the years to come

yes a similar deal may be hard to find (my other 4 unit on the west side generates $2000/mo on 100k total investment) but i promise you the numbers will be a hell of a lot better than you can find in hamburg.

also, the best part is taxes are under 3k/yr on both

be careful with anything abrasive or pressure washing. Brick only has a thin veneer of strength on the outside, and once its gone its gone

im looking to take advantage of conventional financing if possible. Also the property is very close to an expensive private college and I think a few large 2 bed 2 bath units (combined 1 bd 1 ba) will make a killing as they would be the only ones of that type in the neighborhood.

Also im looking to owner occupy as well so I would like to have access to lower rates available for a 1-4 unit property.

As an aside, I know rule #1 is not to get emotionally attached to a deal. this house is perfect though as it has a large parking area and 3 car garage in the heart of a dense turn of the century area, quite hard to find in the city here.

Is it possible to convert a>4 unit apartment house into a 4 unit? Its not much bigger. Would I be able to do it during the purchase and possibly obtain traditional financing? is this only something that can be done after purchasing with a commercial loan? Also has anyone had success using a 203(k) to convert in this fashion? Thanks for the responses, -jim