All Forum Posts by: Katrina P.

Thanks, Rita!

How do you know the vacancies will be filled right away? I don't really know.  But based on my experience with SFRs in the area, they will be filled within 2 weeks.  Again, I don't know how different it will be with multifamily, nor with 1 bdrms...all mine are 2 and 3 bdrms.  So, I guess we'll see.  But I suspect it will be quick.  It's a very strong rental market, in general.  There are FAR more renters than homeowners.

Is this in a neighborhood where there is a very high percentage of renters? Yes!

Any ideas of how long it takes to fill vacancies in nearby multifamily properties?  Nope!  But, guess that's what I'm going to find out.  This is a good question.  I'll call some of the property managers on my list to ask them about this.

Thanks for your response, Zach!

What about any deferred maintenance? - the 6-unit has deferred maintenance, but it's the one that's occupied.  Will need some chimney work, and a few other things...mainly outside cosmetics.

How much work does the property currently need? See above

What is the area like? My areas are all C+ neighborhoods...not great, but what most are used to.

Why are there so many vacancies if pretty much brand new inside and out? He's actually just finishing up on repairs..they're not even done yet.  Per the contract, they have to be done before transfer of ownership, with the stamp of approval from the city code compliance office.  That's why they're vacant.

What is the sellers motivation for selling the property without even trying to lease it up first? See above. But basically, he inherited the properties from his deceased father last year, and discovered REI is not his thing.

Hi All,

I do not know why I experience such great anxiety every single time it's time to "pull the trigger."  So, I just wanted to run this deal by you guys, I guess for some encouragement to actually pull it, and some input, of course.  So here are the numbers.

2 multifamiles (package deal)

1st:

6 1 bedrooms

4/6 currently rented at $560/mo

other 2 will be rent ready upon transfer of ownership

Owner pays all utilities, estimated at $500/mo

Taxes $300/mo

2nd:

3 1bdrms, 1 2bd

Everything inside and outside, pretty much brand new

Vacant

Rents should yield $500-550 per month for each unit

Tenants pay gas/electric

Owner pays water/sewage

Terms:

Total package price $110k

Down payment:  $20k

Seller Finance:  $90k

Interest:  6%

Term:  6 years

I am also thinking of whether to use cash for the 20% or finance that too? If I finance it, payments would be roughly $400/mo. So any thoughts? As always, I have a bit of anxiety about it...I currently own 5 SFR, and had anxiety with each of those purchases, and also for my primary. I guess it's even more anxiety with this one because it's my first multifamily purchase, and I'm doing two at one time...huge step from 5 doors to 15. And btw, I have one other 30 year loan on one of my properties...20 years left, and one other loan with 4 years left. The others are free and clear.

Thanks, in advance, for any input/encouragement!

Katrina

@MarkRusso GREAT idea! Thanks for the tip! I'm all over it :).

@GingerC. They are not the "do-it-yourself" types, so I won't tell them to vacuum. Then, I'm out of state, so that won't work. Then there's my handyman that does all my repairs for me, who says he knows nothing about repairing refridgerators. So, I guess I'll be purchasing a newly used one :).

Thank you guys so much for your replies! I will be replacing it asap! They are new, good (so far) tenants, so I will definitely keep them happy :). Thanks again!

Hi there, fellow REIs!

I have a tenant who is complaining about her refrigerator. She says the unit is cooling properly, buy makes a LOUD, short, humming/buzzing sound every time it comes back on to cool. Of course, the biggest concern for me is that it cools her food - which it does. However, she keeps saying that she's concerned that it won't come back on at some point. I bought the unit used, & after doing some investigating, I've learned that it was purchased in 1985. So I guess it's far surpassed its life expectancy; but of course, I don't want any premature expenses. Please give me some advice on how to handle this one. Should I just replace it, try and fix it, or tell her she'll just have to deal with the noise?

Thanks, in advanced, for all responses!

Katrina

*BUMP*
Does anyone have any input on this? I really need some help here...

Ben Reese Thank you, Ben. I've checked on the taxes and they're up to date. Also, the properties are all city-certified as rentals, so no violations there. Thanks for your response.

Anyone else have any input on this??

@Dawn A. yea, the properties are in Michigan, so cashflow is better there than a lot of places. But I'm mainly looking to see how to make this deal happen with the other three having mortgages...should I try sub2? What are my options? I've never done a deal like this with mortgaged properties. All the ones i've purchased have been from the bank.