All Forum Posts by: Joshua Walker

Just a quick update, I was able to get addresses of the properties and found them to all be in very bad conditions.  Like almost condemnable, yet they are still rented.  Most of the units are renting for $350 a month and after reviewing the financials the property owner is very upside down on all of them.  I don't think he realized before sitting down and looking at everything how bad of position he is in.  He would need to sell the properties for much more that the originally thought 500K, but with the condition they are in they won't appraise anywhere close to where he needs to be price wise.

I ran the numbers several different ways and just can't make it work.  So I guess its back to beating bushes!

Thanks Jed,

You are absolutely right, initially I was overwhelmed by this opportunity and honestly a little freaked out.  But after I slept on it a couple of nights I've calmed down a little.  I'm hoping to get a breakdown of the asking prices for each property and what each unit is currently renting for soon so I can run the numbers.  I also still don't know the condition of the properties.  I'm expecting them to need some repairs since the property self managed and seems to have been having health problems for a while.  I talked to my realtor again today and there has been no mention from the property owner of a all or nothing type deal, but he does need to unload all of his properties.  

Once I get all the information and find out the property conditions I'll be able to make an educated decision as to what is a good deal for both of us.  Thanks for the advice!!!

Thanks for the replies.  A little update, The property owner hasn't nailed down a total price but is thinking somewhere between $500K and $550.  I have yet to talk to the property owner or get exact addresses, so I still don't know the condition f the properties.  The realtor was able to find out that all the units are individually metered for utilities and all utilities are paid by the tenants.  She is trying to get an appointment set up to go look at the properties. 

The only operating expense the owner has is tax and insurance. The owner self manages the properties.  At this price I have enough cash for the down payment, but it would leave me pretty close to broke.  Once I know the condition of the properties and what each unit rents for I'll make a decision whether or not I want to bring in a partner.  I'm hope they are in decent shape and I can sell one unit to get my down payment back to have cash for reserves in case the other properties need some work. I will definitely hire a property management company to manage these properties.  Anyone know of a good property manager in the Lafayette, LA area?

Hey Everyone, 

I need some help/guidance. I recently called a realtor about a duplex that I saw on MLS a while back but is no longer listed. I was pretty sure it did not sell, so I figured I would see if the owner was still interested in selling. The realtor let me know that the property owner had recently excepted an offer the week prior, but the property owner told the realtor of anther property owner that was having some health problems and was looking to sell some properties. Initially it was thought that this owner had two duplexes. The realtor just called me and let me know that she was able to get in contact with the second property owner and turns out he is on dialysis and wants to sell a total of 20 doors of properties. All of which are multi-family. The realtor is working on getting the operating cost of these properties and an asking price so I can analyze the numbers. 19 of the 20 doors are currently rented.

My problems is and why I need help is I'm a newbie.  This would be my first property, so I don't know what information I need or how to manage this many units.  Much less, how I would finance this deal.  Any suggestions from any of you experts.   

@Brenden Mitchum Thanks Brenden! I would be buying this home with cash and I’m expecting to have it ready to rent in about 3 months. I’ll refinance after rehab to get my cash back out of it. I made an offer already then found out it was going to foreclosure. That’s when the realtor called me to let me know they are considering a short sale. She file an extension giving them until Tuesday to respond. I don’t know anything about short sales so it makes me nervous. The biggest problem is my cash is tied up and I can’t make offers on other properties. At lease using my cash!

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*This link comes directly from our calculators, based on information input by the member who posted.

Hey everyone.  I made an offer on this property yesterday and just received a call from my realtor letting me know that she is filing for an extension for the seller to respond to the offer.  She explained that the property is going to foreclosure and the bank is considering a short sell.  If the offer is accepted this will be my first property.  For all you investors that deal with foreclosures, is a short sale a good thing? I have no experience in this and want to make sure I'm not messing up.  Are short sales a good thing for buyers?   

@Michael Noto Thanks Michael! The timing of when to put an offer in and when to get the inspection done did become a concern leading up to making the offer. What I wasn’t clear on is whether or not the home inspection is used as a tool to aid in making the initial offer or if it the inspection is a tool to give you more knowledge about the house after you make the initial offer. I spoke to my realtor and she explained the process to me. What I’m still not clear on is will I be able to lower my offer if the inspection indicates major problems that I missed. I ended up putting an offer in last night so we’ll see what happens.

Thank you all for your input!

Hey everyone! I'm brand new to real estate investing.  I've spent the last six months or so reading everything I can get my hands on to try to educate myself as much as possible.  I am ready me make an offer on my first property.  As I'm sure most of you can relate, I am excited and nervous at the same time.  I would like to get opinions for any of you experts on home inspections.  Should I always get a home inspection on any property I'm serious about?

BRRRR calculator

I'm not sure if this is correct but it's the only way I could figure out how to link it.