All Forum Posts by: Megan Phillips

I am closing on my first investment property this month (I think I can technically count this towards @Brandon Turner's 90-day year end goal AND my goals for 2018), a duplex that will be fully rented. I am paying 20% down so I am planning on potentially refinancing or using some sort of LOC to use as down payment on more properties in the next 1-2 years to grow my portfolio and supplement my W-2 income. I think I would like to focus on really honing in on landlording skills, building a team (my lender and RE Agent have been VERY patient and helpful with my questions, as well as people from BP), and just learning as much as I can from this property to help in future endeavors. Happy 2018!

@Matt K.

Thanks for your feedback. I am mostly looking for verification of rental income and taxes. I think it's in my best interest to check that what the listing says is rental income and taxes, is indeed the actual income and taxes.

Maybe I don't need all of the documents I initially stated, but I also think a seller should provide more information about things listed on the disclosure, such as the size of the septic they had installed, or what exactly they considered "pest" damage, when it occured, how/if it was resolved etc. I don't feel that's asking too much, I would consider it normal due diligence.

@Christine Kankowski

Thanks for the feedback. Septic inspection/pumping is a requirement in the contract before closing. As for upgrades to property, the only thing written on the disclosure was the septic in 2014. 

Maybe what I'm asking for is overkill and won't all be provided, but with how poor the disclosure details are, I want to make sure at least the rents, taxes, etc are actually what they say.

When doing the first walk through, one of the tenants mentioned that he was doing a lot of the work for the owner in exchange for reduced rent, I'm not sure there are actual records of what's been done (it hasn't been anything major like floors or roof, but has replaced a few windows).

We'll see how inspection goes tomorrow.

@Tom S.

For rebates to switch to gas, is that solely for switching from fuel to gas or includes electric to gas also? I would assume Efficiency VT would be the place to get more info. about all of that?

@Shane Brown

I looked at that 130k duplex last week and had an offer accepted on it. Inspection is tomorrow, we'll see how that goes. 

I don't remember if you stated if you're planning to solely buy for investment or owner occupy? Have you been in the property on South Main Street for 215k, I had gone back and forth on it for a while before this duplex came up. I wasn't sure if I actually liked it, or liked it because there isn't a lot available. 

If you haven't looked, I would. I know they would sell for under 200k because they countered me at 199k a couple months back. I offered 180k. It's triplex, two units are decent can get by with some paint, maybe carpet. One is pretty bad, but I was thinking about living in the worst one and renting the other two, and working on it through the first year that FHA requires for occupancy. They have to be wanting to sell it pretty badly by now.

@Eva Morel

I was originally looking in Chittenden County, but the prices don't allow for cash flow, and that is what I'm going for at the moment. I just went under contract Tuesday for a property in St. Albans. Plan is for sole investment property, not owner occupying. Inspection is tomorrow. Not in great shape, but average or very slightly above average condition for the area (a lot of apartments I checked out were not well maintained) to my untrained eye, but the price was well below other market prices for the area -- so we'll see if the inspection turns up any glaring faults. Hopefully not.

Not a lot of inventory anywhere around here at the moment, so anyone looking to buy are all looking at the same properties.

Hi All,

Under contract for a property, as part of due diligence, what are recommended documents/information that I should review before closing.

Inspection is happening tomorrow, and I have visited the property.

I have asked to be provided:

- 2+ years of income tax returns showing rental income, and also showing expenses claimed for the property

- 2+ years of property tax reports, for proof that value on listing is accurate for property

- Copies of current leases to tenants

- Proof that tenants pay for ground maintenance and snow removal (this is listed MLS sheet) as well as heat and electricity

- Bank statements further showing proof of tenant rents

- Something to be added to the contract about all provided information being true/not fraudulent

Is there anything else I should make sure to see?

Also another question:

When reviewing the disclosure report, I'm wondering if there is a way to make the seller provide a better detailed disclosure. At least 80% of the answers are "I don't know" -- even to some that should be known (there was a septic installed in 2014 and when it asked about size, etc, all of the answers were "I don't know" -- it was installed when you owned the property!). Or in one area it stated damage had been done by "pests" but no explanation was written. It is getting inspected tomorrow, so I'm hoping that anything the didn't disclose is found by the inspector. 

Any information would be helpful!

Megan

I would include in the lease that general shoveling/salting of walkways, steps, or doorways is responsibility of tenant but I would maybe provide all units with snow shovels. With any decent snowfall be sure that any exterior air vents are not buried.

Here, 48hr notice is required for showings/walk throughs, that should be easy enough to agree on. As for the rest, I would have an open conversation with the seller and let them know your concerns and see what they say.

If you have another house to relocate to, even with the hassle, I would probably just move and remove the stress of wondering who/when someone is going to be coming to my apt, especially with a new baby. Not to mention what happens when it goes under contract with a new owner.

@Eva Morel

Welcome to BP! There are lots of helpful people in VT that are patient and helpful with questions @Samantha Hiscock @Amy Paradis  and @Blair Knowles  have been super helpful for me! I also listen to the BP podcasts at least weekly sometimes several of them weekly, and have on more than one occasion found myself lost in the forum conversations, so much food for thought. It sounds like you have a decent head start with the background of working with your Dad. Good luck!

@Shane Brown

Too bad about the Enosburg property - it seems nice, but I pretty much came to the same conclusion for the time being... just too rural. I looked at the duplex at 266 Lake Street also, It's 215k, FSBO, not as flexible as I'd like on price, so I'm not going give another offer for now after my initial verbal offer was below what they wanted. I know they are doing an open house on Sunday the 10th, if it's still on the market after that, I'll probably offer again.

A friend of mine is considering it not necessarily for sole investing, but living there and just using the upstairs as a mortgage supplement. It's the nicest property I've seen in St. Albans by far. I'm checking out the duplex you're talking about tomorrow... I'm hoping it's not a complete dump, haha.