All Forum Posts by: Luciano A.

@Ricki Lacefield

  If I was in a position of being able to buy a property with just 3.5% down I would run with it. And by doing a 4plex you have three units that will be paying for most of the expenses. 

I would highly recommend especially if this will get you into the RE game. Just remember you have to live in one of the units for at least one year.

Another piece of advice........ Don't tell prospective tenants that you are the owner. Just tell them you are the onsite property manager. This way when you have to charge for the late fee they won't be mad at you for doing your job. lol

Best of luck

@Greg DeFeyter

I would say you are going to be pleasantly surprised how this approach will make you a successful landlord. Given you have lived in the property you already know all the issues with the house. So first fix those items. Don't overstress yourself about using LLC to rent it out and all that. As @John Mocker pointed out you should notify your insurance agent so that they can put a landlord policy versus homeowner policy on your insurance. Have the agent quote you with at least $300k in liability then ask for an umbrella policy if $1m. This will give you all the protection you currently need unless you own millions of dollars of assets. 

You don't need to contact your mortgage just have them change the mailing address so your statements isn't mailed to the house. 

Don't furnish your property. A tenant will come with their own furniture thus you don't have to worry if your nice table is all banged up. 

I normally include a fridge but check Zillow and see what others in your area include in their rentals. A tenant doesn't always have the money to put down for security deposit, first months rent, and bring their own appliances. That's just my crazy thinking. 

Use MySmartMove.com to run credit and background checks. 

Use Zillow to list without having to pay a real estate to get the word out that your property is for rent.

Hope this helps.

Best of luck

Luciano  

@Aidan Mollahan

  The seller should have signed a disclosure statement stating the condition of the property. Review that and see if it mentioned if they knew about the roof leak. Sometimes things happen. For example, I sold a duplex and a month later one of the pipes in the ceiling started to leak. It was a pinhole leak on one of the copper lines. Never leaked when I owned it. 

Be careful because remember some of these contractors who come out to give free estimates aren't doing it out of the goodness of their heart. Might be best to call a few other roofers especially ones with the truck that has their company name and is not a mom-and-pop business. Once a few people have come out and given you their professional advice you can determine how to proceed. 

Have the roofer look at the area where you noticed the leak and have them pull up the shingle to see if a nail is causing the leak. Sometimes a roofer can shot a nail too low in the shingle thus causing water to enter the structure overtime.  

Once you have had a few professionals look at the roof you can then take that back to your buyer's agent and see if they can help. 

Sorry to hear this is happening to you but hopefully will not be a costly repair. 

Best of luck

Luciano 

@Aaron Sheagley

@Brian Spears

I agree with Brian. We started using Agreeable Grey on the last few builds and it has been great choice. It fits both tan/grey buyers. White trim and it looks great.

Best of luck on your flip

@Tim Wieneke

How many of these situations have you been in? Regardless if this guy is an attorney or not anyone making a claim would need to have survey. He came into the forum wondering what he should do. First thing first is survey. Why waste money with lawyers if he doesn’t know what he is dealing with. What if that is part of the neighbor’s land. I just think people get scared and jump the gun when they hear attorney.

You suggested he hire an attorney to answer his questions. But what questions does he really have. Without survey it’s a guessing game.

I’ve dealt with this three times and each time a demand was made it was because someone had a new survey done.

Running to speak to an attorney cost money they don’t give free advice even at their 30 min consultation. My point in my last post was why worry until a survey is done. Once he has all the facts he can decide how to proceed.

@Alan Robson

I’m laughing at some who think bc this guy is an attorney that you are screwed.

Unlike others I don’t get scared someone is an attorney. He might specialize in divorce or taxation. An attorney specializes in a specific area of the law thus they don’t know everything so don’t let him bully you.

I’d sit back until the survey is completed and then plot my next move. Too early to waste money on legal advice.

Best of luck

@William Eric Schaefer

You should check with city permit department to insure you wont be required to submit drawings for work to be done. Once you open walls and start doing rehab you will be required to bring it up to code. Not sure if your area but being this is a commercial property Fire Marshall will have a say. I'm dealing with city on a multi family and parking requirements and setbacks of structure all have to be addressed just to get approved . If seller gutted he should have had permits so you can check status of those permits. Sometimes rehab on commercial becomes a lot more complicated than a standard SFR.

But price sounds great just don’t get over your head as 8 units can become a monster liability during rehab. Thanks for your service and best of luck

@Matt Nico

Go to your local community bank and ask to speak to a commercial banker. As a few mentioned you can get properties into an LLC and getting a commercial loan will remove these from your personal credit. Working with commercial lender the properties and dscr will be more important.

Only drawback with commercial is the amortization is 20yrs with balloon in 5yrs.

You will find a way just don’t give up

Best of luck

@Ashley Abramson

Have this partner order an appraisal so that your parents and him can get real value. With that maybe your parents can take to their bank to see if their bank would give them the loan to buy out partners interest or offer to other friends who might be interested. I’d however wouldn’t give this partner full 50%. Instead offer 35-40% given what it would cost later when you have to really sale and pay realtor fees and closing costs. Best of luck

@William Nelson

One thing you didn’t take under consideration in your calculations is depreciation thus reducing the taxes but I agree taking money out tax free and reducing cashflow is still a win.