All Forum Posts by: Pete Jimenez

Hello, BP! I'm doing my due diligence right now and lI'm lining up all my inspections for my first 4 plex that I am purchasing. The 4plex was built in 1950 so I'm worried about what is underground and behind the walls. So far, I have the following.....

-Standard home inspection being completed.

-Pest control inspection 

-Sewer inspection 

Should I get an electrical inspection as well? Or is that covered by the standard home inspection? 

Again, this 4 plex was built in 1950 so I want to do every major inspection to potentially save me thousands down the road. 

Any other recommended inspection will be a big help! Thanks in advance for your replies. 

I will also be getting a full inspection done! 

Should I get an electrical inspection done outside of the regular home inspection since this is an older home? 

Thank you for the reply. I just got done looking at the units. The roof is in good condition and there is evaporative air units installed that seem in good condition. The inside if the units are dated but that is not a big concern. Upon inspection, the property manager stated 3 of the 4 Tennant's are section 8 renters. 

Should I be concerned about section 8? I was able to speak to 3 if the 4 Tennant's and only 1 of the Tennant's was a concern. The others seems fine. All units are 1 bed 1 bath. The one tennant of concern is month to month and will be evicted as this is an FHA owner occupied 4 plex. I will be taking that unit.

The property manager stated section 8 doesn't have high vacancies and that rents are direct deposited. 

I spoke to the renters and none of them had any major concerns or complaints. Should I take that as good sign? 

Thank you! Yes, I will be having a standard inspection done. I will also have a plumber come and do an inspection with with a snake. I want to make sure there are no major issues since the 4 plex was built in 1950.

Hello, BP! I had an offer accepted on my first Multifamily 4 plex. I will be doing a walk through if the property today. What are some things to look for?

I'll be checking roof condition, AC, Plumbing. I will also have in inspection done to confirm the condition of every thing. If the Tennant's are home I will be nosey and speak to them about their experience and if there are any pending issues that need to be fixed. 

what list of things should I be asking for from the current landlord? 

-Rent roll

-copies of owner responsible utilities for past 6 months

-lease agreements 

I will be inheriting all Tennant's. 

If the property has a property manager, is it ok to reach out to them and speak to them as well about the property?

Any other recommendations will be a great help. Thanks! 

Hello, BP! I have a question regarding being on title of a multifamily. My mom is purchasing a 4 plex under her name and she will be putting me on title only. She is getting an FHA loan and living in one of the units as her primary residence.

Again, I will be on the title of the 4 plex but will not be on the mortgage. 

Question: Can we refinance the loan in one or two years and take her off the loan? Assuming I qualify, would I have to give a downpayment to take full ownership of the home? Would it be a traditional sale? Or could we just refinance into a conventional loan only in my name and take her off title. Again, I understand I'd need to qualify for a conventional loan. Just not sure if I'd have to give a down payment like a traditional sale or if its different because I am on title. Thank you!

Hello, I have a question regarding being on title of a multifamily.

My mom is purchasing a 4 plex under her name and she will be putting me on title only. She is getting an FHA loan and living in one of the units as her primary residence. After 1 year, is it possible to refinance the house into my name only and take her off the loan?

Or do I have to purchase the house from her the traditional way and give a down payment and pay closing cost and all other fees involved. 

Again, I will be on title only for now and not on the mortgage. But 1 or 2 years down the road I would like to refinance the house into my name on a conventional loan and take my mom off completely. I'm not sure if I would have to give a down payment in doing so. 

Any help would be great as I have heard different answers. Thank you for your replies! 

Thank you, Nick! Appreciate the info. 

Thanks for the reply Nick & Whitney! Of the $900 rent I would put away 20% for expenses & vacancies. 900x.20= $180 per month. So all said and done I'd be positive $69 per month. This will be a self managed property. Since it's my first deal, not sure if this all makes sense. 

Hello, All! Does anyone have experience BRRRing a condo? This is my situation below....

Condo:

Purchase Price: $40,000 (cash)

Rehab: $12,000 (cash)

All in: $52,00

ARV: $65,00 (assuming appraised value based off comps).

Cashout Refinance: $65,00x .75= $48,750.

30 year loan @ 4.1%= $301 (includes taxes/insurance)

HOA: $350

Total mortgage with HOA $651

Rent $900

Cashflow: $249

I'm ok leaving some money in the deal as long as I get most of my money out. 

Am I missing something here? Would there be any issues refinancing with the bank because it's a condo?