All Forum Posts by: Paul Steward

I would recommend to just find a cheap replacement until their lease expires.  Also, if you supplied a move in/out checklist you can charge for the damages at the time of move out.  Home Depot here in Michigan has cheap electric ranges for roughly $350, they are not glass top but work just the same.  Home Depot even installs and hauls out the old one.

I would offer a free first month rent with a 13 month lease.  Yes you're losing income on the "free month" but you're also getting the full year of income.  I would also write it in such a way that if the terms of the lease contract are violated/terminated that they will be repaying the concession of the free month.  Some times people need to be made to feel like they're getting something free or a good deal.  You could offer to move in with just your security deposit as well.

For early lease termination, I call it a lease contract buy-out, I need a  30 day notice plus two months rent value and I let them go.  You should remember life happens and you wouldn't want to be stuck in  a full lease if something major happens that requires you to be elsewhere.  I explicitly state my "lease contract buy-out" in all my lease agreements so that they are aware a 30 day notice to vacate is necessary.  The 30 day gives you time to market the property with hopes of renting it before your current tenant leaves.  

@Alexander Felice @Michael Plante I’m actually in talks with the seller now to make the purchase.  I’m not an investor, I’m a realtor. I was coming to get information form savvy people not to be down talked to. I appreciate your thoughts but if you actually read the thread you would’ve seen that instead of jumpin to conclusions.

They’re not afraid of well and septic.  They have land 2 miles away.  I’ve done every deal with them from the start. We have a great relationship. 

200k price

4k monthly in rents

2500 in taxes

(40-75k max in repairs)

@Irina Belkofer

1. 200k

2. 48k

3. Depends on who you ask.  The septic fields have been replaced within the last 5 years with proof.  There are 3 wells on the property. 

The land contract deal was ideal and actually there idea.  

@Austin Fruechting

There were a few typos in there. There take home after paying there LC payment (at 5.7% interest  amortized over 30 years ).

The repairs are dependent on the person.  I don't think half the repairs were necessary to gain control of 6 properties (4 being condos that you can actually sell and create your Condo Association)

I'm actually communicating with the seller now to buy the property with the same terms.  It's just difficult because i'm a realtor and the contract I have with him includes at 3% commission and I don't think he's ok with that.

@Austin Fruechting I know this because I’m a realtor in the area.  When the rents on the 6  units bring in 4K and it has low taxes, no water or sewer bill because it’s on a well(3 total) and 2 brand new self cleaning septic fields.  Fully occupied with long term tenants. Yes they need repairs but the seller was offering seller financing ( land contract) with only 15 k down and 1500 a month payment with a 5 year ballon.  You’re not making 2500 after payments. 

They’re more concerned about repairs to add value (for refinancing purposes) 

I get it you want to be able to refinance but wouldn’t you rather gain 6 income or producing units? 

I think that’s  a good deal.  

I had a deal that went south for one of my clients.  I personally thought the deal was a home run but my clients had another view.  Numbers not aligning was the deciding factor for them.  I'm not a pushy realtor and never will be.  The deal just seemed so great from my end and totally shocked me when they backed out.  

Can someone please explain why numbers are so important. 

Cashflow was great as the properties were.  Yes they needed repairs but they didn't need them right away.

4 townhouse style condos with a duplex on the same property for sale in St. Clair County MI.

The townhouse condo's have an association without bylaws so you can essentially create your own.  Both properties sit on over 3 acres of land with multiple wells (saves you from a water bill)  2 septic tanks that have been replaced with "self cleaning" over the years.  

These properties do need some repair but the price tag is the seller's bottom line.  

Willing to do land contract.