All Forum Posts by: Michael Henry

@Jessica Hughes

$200/mo before expenses is cutting it to close in my opinion. Any minor issue you and you will have a negative cash flow for several months.

This was a townhouse / condo in south Florida. It was significantly under valued At the time.  

@Trevor Scheiderer

My first property purchased in 2015 selling price was $155k. Appraisal came in at $131k

Instead of dropping the deal owner agreed to owner finance $25k ... 30yrs amortization With a 5yr ballon.

Payments approx $150/mo

I put down 5% on a conventional loan for the remainder. Only $6,500

Fast forward to 2019 property is worth $200k , rents for $1775/mo. I can refinance to pay owner or sell in 2020. I’ll be selling the property to invest in other deals.

@Victor S.

There was a laundry list of very minor items that were marked during the inspection but nothing that was immediately concerning. I’m proceeding with the translation despite the seller not fixing anything , awaiting the appraisal.

After a second opinion the itemized break down is:

Stair landing welding / brick repair $950 

Laundry room door repair / change $500

Remove vegitation from building / stairs $150

Repair / repaint ceiling bathroom @ kitchen $1200 

The deal - $152,500 quadplex , fully occupied $1,775/mo rent. All utilities paid by tenant 

This is a great idea after downpayment and closing close my cash will be minimal  so I may try this method if all else fails. 

I put an offer in with the expectation the roof would be done prior to closing. This was stated in the original listing. 

$3k doesn’t necessarily make it a bad deal the tenants have not had a rent increase for 3yrs so there is plenty of meat on the bone, I would just prefer not to go into a property having to make major repairs. 

Would like some advise here I’m under contract for a quadraplex, during the inspection period I had a property inspector find a few issues, damage to the ceiling from a prior leak , safety issue with the stability of a staircase , and mold in the laundry area. These were the major issues in my opinion. A contractor quoted $3500 to fix these issues which may be a bit high , but the seller came back and said he would contribute $500 to repairs. Is this something I should just deal with and fix myself or back out?

Backing out would cost me $900 for the appraisal I already paid for plus $525 for the inspection.

On a side note the roof was replaced at a cost of $6500 2 days ago at the sellers expense.

@Habbak Burs the first duplex I bought my first offer was 40% less than asking price. When it was all said and done we closed 25% less than asking.

There have been times for rehab properties I’ve offered 75% less and been flat out rejected.

@Lindsay Favazza. I have one property I self manage, and one which I use a property manager and I will tell you the PM is worth every penny. They take 10% of the rent but I don’t have to worry about collecting rent , scheduling repairs, or any of the day to day nonsense. They also did not charge a “tenant placement fee” some PM charge one months rent.

The property I self manage the tenant will txt me when there are maintenance issues which I can’t do anything about being 9 hours away I have to rely on her to get quotes, these repairs cost me ($450 and $1400 respectively) I’m sure a PM could’ve gotten this work done cheaper. I personally rather not deal with the tenants, but everyone is different.