All Forum Posts by: Nicole Clemens

@Joe Villeneuve

Gotcha.  Thank you!  Your advice is very much appreciated :)

Thank you Joe and everyone else.  

That is a good idea.  I did respond to his request already asking him for some type of compensation to keep the loan in my name.  I will already be getting to write off half of the mortgage on my taxes, but I still think that I would need more than that for such a huge risk.  I honestly dont even think its something that I should do unless there is some type of legal paperwork that could protect me in case of a loss.  

Hi guys, 

Thank you so much in advance for anyone who takes the time to read and respond!

In 2009, without knowing anything at all about real estate, I bought my first investment property with a partner (a good friend) - an old gutted hardware store that we turned into a quadplex.  We discussed that this would be a long term investment and I assumed I'd be in it for the long haul but recently had a conversation with my partner telling me that he wants to be the sole owner because there isn't enough room for both of us - which is correct.  

Here are the details: 

We paid 90k for the building and are all in for a little over 300k. Market value is currently around 280k. Around 55k each out of pocket (terrible - i know) We've had a good amount of vacancies over the 6 years so there has never been much cash flow. We have a high interest ARM that is in both of our names personally and due in 2018. This year is one of the only years that we've had the place fully rented and it will finally start to cash flow. We pay out around 2300 and rents rec'd are 3400.

My partner wants to buy me out paying me back ONLY the 55k that I put into it.  

In 6 years I have contributed the following:  

-Lived in the property for the first year to get owner occupied loan (which we didnt get anyway)

- Loan is in both names personally (credit tied up)

-55k out of pocket

- Time spent dealing with contractors for the 9 month rehab, etc., tenants, lawyers, zoning, license and inspections, etc.  

My question is, is it an okay decision to walk away from a 6 year investment with only the money put in?  Is it fair of my partner to offer that (I'm assuming yes, since there's not much room for him to compensate me).  Should I get out now and put that 55k to work elsewhere and clear up my credit?  As I type this, the answer is becoming more clear to me lol but I just wanted to double check so that I dont get yelled at AFTER the fact when it's too late.  

Oh and lastly, the one issue with him buying me out (and this is a pretty big issue) is that the current balloon loan (due 2018) is in both of our names......he is unable to refinance at the time so he asked that I keep it in my name until the refinance in 2018.  I know this is a terrible idea 1- for liability purposes 2- it kind of defeats the purpose of getting out bc while it frees up cash, it prevents me from being able to take out additional loans in my name - but maybe there is an option that I havent thought of?  

Any advice or suggestions would be GREATLY appreciated!  

I am in the same boat.  

My tenants are good tenants.  They take care very good care of the house, treat it like their own and told me that they made it their home and would like to stay for at least 3 more years, if possible.  Buttttt.....they are always late.  From 1 week to 3 weeks late.  But they pay.  And they pay their late fee.  Their lease is up at the end of the year and I told them that we'll do month to month until the summer and then we'll renew if they've improved on their payments.  I personally would have late paying tenants who are decent people, taking care of the house over the next tenant who could be potentially horrific....and I'd rather not deal with the turnover.  Just my opinion :)

West Philly wholesale deal.  4 bedroom, 2 bathroom end row with central air.  Rear driveway.  

Asking price:  80k

Repairs:  15-20k

The 

Do you know what the asking price is?   

Troy, 

This looks great!!!  I'm so happy to see that things are going well and you are almost wrapped up.   

P.S.  I am downtown at L&I twice a week and have some connections down there if you ever get into a jam.  I'm pretty friendly with a handful of the inspectors too.  

Hi guys, 

I purchased an SFR using private money and am now in the process of doing a cash out refi. My goal is to be able to purchase more rentals but without having to use private money (since it's not always available). Can someone please tell me if the right thing to do is to pull out as much money as I can from this property so that I have some cash on hand for my next deal? I'm a single parent with a house of my own to pay for and I definitely need to stay on the somewhat safe side.

The details of the property are as follows:

Purchase price including closing costs: 76k

Rent: $1050

Taxes: $150/mo

Insurance: $90

Repairs- minimal

Appraised value: $150k

After repairs were made, interest on the loan was made, and I pay my private lender off, I have zero of my own money into this deal.

Any advice or direction would be helpful :) I have two flips under my belt and also own a quadplex with a partner. I've read a million and one posts on BP. I'm definitely not being lazy. I just hesitate. Often. .....and question my ability to make the right decisions and am very worried that I'll make that one wrong decision that will change the game for me.

Thanks in advance! 

 Nicole

I agree.  I want to see real numbers and step by step from start to finish.  I think that the more we (especially beginners) see real numbers and a breakdown of where those numbers came from, the better we will become at analyzing deals.  

Congrats!  @Nicholas Kurowski

@Max T. Where did you buy your duplex at?