All Forum Posts by: Joe Sadusky

@Lissette Deleon contacting tax delinquent properties is definitely a good strategy when looking for off-market deals. 

I also suggest using the public record to try and determine how much the property owner owes on the property and if there is room for you to buy at a discount. Vetting your leads by doing some homework can help save you from an awkward conversation with a property owner who owes way A LOT on a property that you were hoping to buy at a discount. 

In order to know if something truly is a good deal, you have to know your market.  What are comparable properties selling for?  How much is the property worth when it is at its highest and best renovated use?

It can get a bit trickier when and if you are only looking at multi family properties. In my market, especially in the high rent areas, a multi family property can be worth more then the true "market value" because of the upside of rental income.  Simply put, the property is very desirable because it has great cash flow.   On the other hand, there is niche and limited market for selling multi family units.  The main buyers for these types of properties are other landlords/investors.  This means that if someone does decide to put one of their units on the market, it very well could sit there for a while. 

I would target properties that look a bit run down, and the property is not upkept. This could be a sign of a "tired and defeated landlord" that may be willing to sell and unload the property at a discount just to get rid of the burden. 

When we market off-market deals, we advertise as buying for CASH (so for you this could be your private money or your HELOC). We also will make comments like: tired of being a landlord?, no fees, no repairs, and fast closing.

My seller lead sheet checklist for when I receive calls back is as follows: 

Name, phone #, email,  preferred method of communication, address, description of property (beds, baths, sq), overall condition, amount owed, reason for sale, how soon are you looking to sell, etc. 

Since you are specifically looking at multiple units, I would also ask about rental history- are the units fully rented, rents collected, etc. 

Hope this helps!

Good Luck and feel free to reach out to me with any questions 

Hey @Andrea Cocolin , 

Have you started looking at any duplexes yet? 

I would suggest making sure that you have a unit that has a nice sized yard that you could section off with a fence and have access from your unit. 

I don't see why it would be a problem. Its your property and you would get to screen and choose tenants that would be a good match.  Be upfront with prospects as they view the unit that you do have two dogs and that there will be times when they will be in the yard. 

I had a similar situation with my first rental. I had twin house, bought and rented out the other side of the twin to tenants.  We told them that we have a dog and that they may hear her from time to time.  We did however allow them to also have dogs since we had separate yards. 

Do you have any rentals yet?  I would be glad to help you crunch the numbers and see what properties would work out best for you. I manage my own rentals and also some rentals owned by a family business. Have template lease agreements and tenant screening info that I can show you. 

Me and my wife are licensed real estate agent in PA and NJ so could show you some places if interested.   

Always happy to give advice and help where I can. 

Good luck!

@Joe Sadusky

Correction - I would file for eviction

@Tu Anh Nguyen

sorry to hear about your situation.

If everything you’re saying is accurate, and your lease is a standard residential lease agreement, I believe your tenant is violating your agreement. They cannot demand actions to be done by nonpayment. I personally would warn this tenant that they are going to be evicted if they do not pay rent on time as per the agreement. And violating the lease would mean they would loose their security deposit. It sounds like you’re doing what you can to rectify his concerns.. but if he is not cooperating- then what else can you do ? I would not file for eviction and set a precedent.

Before discussing the possibility of eviction,review your lease agreement. Also make sure that you document everything. Each time you try to

schedule work, and the tenant does not allow the worker to enter. With proper notice, you are allowed to enter to premise. I would give him notice, and show up with your set of keys to let the work be complete.

@Bryan Malone welcome to BP!

I agree with @Kiera Underwood . If down payment money is an issue, house hacking is definitely an option! In my market in NJ, as an owner occupant (living in one of the units), you can get away with even less then 5% down on an FHA loan. Keep in mind that there are minimum requirements that you may need to physically occupy the unit (6 months to 1 yr) but if you chose a property below market value, you have the option of doing a cash out refi and pulling money out of the property for your next investment.

You can also do a live in flip as an owner occupant (same low down payment concept). 

Do you currently own a house ? or renting? 

The live in flips and house hacking can get challenging if you and your wife are already comfortable in a nice house (especially if you have kids).  But, if you two are willing to sacrifice having your "dream home" until after you acquire some rentals...you could really project yourself ahead! 

Good Luck! 

@Tiffany Smith do you have any other large debts that are affecting your DTI?

I've been in a similar situation as you. 

What is use of the other property in your name? Is it an income producing rental?  And is there a loan on the property? Or are you saying that it is fully paid for by someone else (aka tenant) or your father? 

Is the lender counting income from your current 2-unit rental towards your total income (I believe they can use 75% of collected rents as income).  This should help your ratio if they are not already figuring it in.

@Jeffrey Douglas "Set For Life" by Scott Trench 

Hey @Sam Spina there are multiple forums and a step by step guide posted here on Bigger Pockets.  

Search wholesaling. 

Best of Luck! 

Hey @Henry Davis , This is a very tricky question and should be a decision that only you can make. 

I can say that I have seen both sides of this particular scenario.   

I went to college, got my Bachelors degree and left with over $100k in student loan debt, and got an average paying job that required a degree. 

After working at my full time job for about a year, I was not going to be approved for a mortgage because I did not have my professional job for a substantial amount of time  (underwriting usually wants to see 2+ yrs) and my debt to income ratios were all out of whack.  

Now I was fortunate enough to get into real estate by finding an off-market, way below market value house in close proximity to my job. I bought the property with cash however. It was $30k and I borrowed this money from family (I understand not everyone has this luxury or option). I also got a high interest personal loan (with the intent on paying it back quickly after doing a refi) for $25k for the necessary repairs for the property. 

My intentions were to refi the property (since I knew there was plenty of equity in it) and then turn around and pay back the $30k in private money I had borrowed from Family and also the $25k high interest personal loan. 

After I worked at my full time job for 2 years, I was able to do get approved for a refinance.  The refi allowed me to pay off the $55k I had invested into this property, pay off some of my student loan debt, and have cash left over for my next investment. 

In summary, I used real estate leverage to my advantage since my student loan debt was crippling. 

Depending on financial situations, it can be very tough getting approved for financing when you carry such large student loan debts.   BUT the double edged sword in my scenario was that I also would have not gotten my salary if I did not go to college. Without my decent salary, I also would have not gotten approved for the refi amount (or equivalent home purchase amount). 

You need to do some soul searching and determine which direction is best for your future.  I do not regret going to college and all of the things that I learned and the job that I got because of my education.  I am now a professional licensed engineer and I am also able to do real estate and investing on the side to supplement my income. 

I also have friends that were able to have decent paying trade jobs without the need to go to college.  Its all circumstantial. 

Good Luck with whatever choices you make, but I think that no matter which way you go- there eventually be a way for you to get involved in real estate one way or another in your future :) 

@Alejandro Sanchez I would suggest checking out some HUD homes.

I agree with @John Collins that foreclosure bank owned deals have a good chance of becoming a bidding war (if the property truly has potential to be a good flip).  I have lost plenty of good deals on foreclosures because I was being strong armed by investors with access to more capital.  On the other end, there are foreclosed properties that sit on the market if they are priced too high. As the days on market increase and there are some price reductions, that would be a good opportunity to try and submit some lower offers to see if the banks will bite. 

The thing that I like about HUD homes is that good deals can be made for the right properties especially while the home is under the "owner occupant only" bidding period. You will have a chance to secure the property without being over bid by cash investors. In NJ, HUD also offers a program of a low $100 down payment for FHA loans (I believe this is only offered in some states).

I bought a HUD home myself, well under market value. The house was in decent shape, but I got a renovation loan to upgrade the house. If I were to list my house now, I would make some good money.

Make sure you run your numbers and comps in the area. 

Good Luck!