All Forum Posts by: Jon Thompson

I did two septics on house flips last year in Western NY (Erie county). Both 3 bedroom houses, both right around $10,000. Depends on dirt and water table. I had to do a lift pump system on the one so it was a little more

Is this a conventional sale using financing? In NY where I live the county requires well and septic to pass inspection when the property changes hands, unless it's like a foreclosure or similar where buyer assumes responsibility. Septic tank (s) should be pretty huge for that many units. 3 bedroom house here requires 1,500 gallon tank. 

I'm not a lender but I've done what you're asking in Western NY through Key Bank back in 2016. Rate was only about 1% higher than if it were my primary residence. 

Sounds about right on your first one. It's easy to underestimate the time needed to get it done! Stick with it until it's 100% finished, you'll be glad you did

Thank you Mark

my interest was more in the cash payment up front. Guess I need to go look at my lease, but I believe it was mostly about payment on the 1st, etc, etc. I'm assuming there is a different lease I can print for full payment in advance?

Hello BP. I had potential tenants come through this week that are building a house nearby and requested a shorter term on their lease. At first I declined as I don't feel like screening and going through the whole process more often than necessary. I was also hoping to get someone that may stay more than a year.

Anyways, the tenant said they like the house (it is one of the only single family rentals in town) and asked if I would discount the years rent if they paid up front. I said to let me think overnight on it.

I ended up offering a ten month lease, rather than discounting my monthly rents. I will get my regular 1450/month plus 1450 security up front. The reason I did this is that my rental is in a town with the top rated schools in the county, and I would like my move in date to be earlier in the year in case I get a family aiming for this school district next year. Saved my new tenants 2900 bucks as well (the two additional months rent I took off) which is a lot better than the 50 bucks per month I was originally thinking of discounting on a twelve month lease. Plus, keeps my move in date mid-summer next year, so no trudging through snow, etc. May get lucky and have them leave early as well.

My question is, I only have standard, one year leases in my possession. I need something for them to sign that is legally binding and covers my butt! Any clue where I could get that?

great start! Seems like a great one to begin with, good cash flow with opportunity to up rents.

I will consider multi unit as well, but for now I will likely stay with a single family that needs work in the same area.  I find that single family homes that need work have less people looking at them as investors (compared to multi), and when they are cash only deals that tends to eliminate a lot of buyers.  Also, if I look at duplexes here in WNY where taxes are already high, they tend to just about double the taxes as well if you compare a single family home and duplex of same size in the same neighborhood.  So if I go multi-unit I would like 3-4 unit (as would nearly every investor around since you barely see them listed, and they go quick if they come up!).

Thanks guys!  Pretty excited about progress for sure.  I just signed my final commitment letter for the loan, and closing date is 12/29, so I'll have a good chunk of change in the account to start 2016!