All Forum Posts by: Michael Lauther

Nick K. your return on the $31,000 purchase price and 7720 NOI is around 24% not unusual for this type of property. Your loan may be difficult to come by and the issues to consider are vacancy and quality of rehab done. Poor repairs can cost you plenty and a new roof would eat up all your NOI. Bad tenants are worse than no tenants. Based on the rent that you are expecting would in my opinion require close scrutiny of applicants. The current owner may not be as concerned about quality of tenant or at least not as concerned as you should be. I can buy property like this in Dayton for under $20K that require $11k in rehab cost. I would be curious as to why another investor would sell at this price. You are correct that he us not likely to make much of a profit. How long has he owned the property, how much vacancy has he experienced. Maybe he is just tired of managing a low income property and if you are up to the task you could do well. I would caution you to make sure you can handle the note if things went bad. It is not likely that a property would sell quickly in this market.

My experience in New York is that the lender will not accept payments on a property in foreclosure . Properties here on Long Island have been sitting without any payments with the lender paying taxes and insurance for in excess of 3 years. when the owner offers to resume payments the money is returned. How does this square with the problems discussed here. The owner of the property should be able to rent the dwelling. And the bank does not yet own the property. Perhaps you could get an idea of what is possible if the current owner offers to resume payments. Will the bank accept them?

Mark Reynolds Thanks for the input a park could be a good idea if I do not fix the property. I own several properties on that street and it would be a good fit. Vacant land is not worth much there .

K. Marie Poe the insurance companies in Ohio are regulated by code section 3929.86 (c) which specifies when a loss equals or exceeds sixty percent of the aggregate limit of liability on all fire policies covering a structure the company shall transfer two thousand dollars for each fifteen thousand dollars of the claim to the municipality in which the structure is located. If I do not repair the property or clear the land, the city keeps the money and will demolish the property. Hope this clears up your questions.

@mark tried to respond on I phone will wait till I get back to my computer . Thanks for the interest the property is at 408 Sheridan ave Dayton Ohio 45403 I am on talks with a local contractor who wants to repair and take 50% of the rental profit plus a 10% management fee and 50% of the profit upon sale . It would be a good deal for me if I was convinced he could perform his end. Would be interested in your opinion regarding options

Dawn A. I am a retired financial planner and have also sold insurance . you will find that the vast majority of "financial Planners" make their living selling investments and insurance and relatively few do fee based planning for a living. Most of your needs from what I can tell have to do with technical answers regarding the tax status and flexibility of your current qualified (tax favored) retirement plans. If you are still actively at work with the company who has your 401k you are not able to roll it over to a self directed plan and I would be limited to the investments made available by the administrator. I have many friends and acquaintances who are fee based planners and frankly even those professionals have a vested interest in selling product. You need to be able to understand how each investment fits into your personal financial goals and you will find that very few planners are well versed in real estate as investments and will most likely steer you away from real estate into more traditional products. Good luck with your goals , it sounds like you have made an excellent start with your current real estate activity.

Chuck Redman good to know chuck, be well and good night.

Chuck Redman no I am investing in Dayton Oh, never new there was a Dayton Texas.

K. Marie Poe i checked my notes and we had discussed this question of what to do with a fire loss with Ed O in my post from May of last year. He also had a loss and was helpful to me at the time. I can see a real opportunity with this kind of distressed sale being on the other end. I am too far away to effectively handle the rehab and a good contractor with knowledge of how to handle this kind of loss could make a profit on the situation whereas I will be lucky to break even. So once again Brittney Taylor I am not saying to walk away but understand the opportunity and risk.

Ibrahim S and K. Marie Poe, To answer how the city obtained info on the fire and attached the money, the city pulled the water meter and the insurance company paid the city directly. I applied for a building permit but have not repaired the property. Yes the water from the Fire departments putting out the fire caused mold partly a function of my delay in ripping out the damaged dry wall and plaster. Also smoke damage even in parts of the structure that were not burned because smoke got behind the walls and to fix this the sheet rock and plaster needs to be removed down to the studs. There are some area upstairs that can be salvaged but the entire first floor must be taken apart. I believe I have two years to claim the funds which will be returned when I get the new Certificate of occupancy. There was another BP member who experienced the same situation I would have to check my notes from when I posted about the fire to update his experience.

My advice therefore regarding this post is that while there is opportunity in acquiring property damaged by fire, look carefully and make sure you understand what this type of rehab requires.