All Forum Posts by: Peter Nikic

Quote from @Mohammed Rahman:

Hey @Peter Nikic - I read your title and before clicking I scoffed because I assumed the seller was trying to change the price after contract has been signed. Doesn't seem like anything has been signed yet. My perspective is that the seller isn't wrong for increasing price to keep up with inflation, but it seems that they're trying to play ball with you during the negotiation process. 

I would respond and mention those exact things that you've written in your post but also include any supporting evidence you can find as it pertains to the property. I would take a look and see if you can spot any room for negotiation during the due diligence phase (maybe remodeling, cleaning, difficult tenant on rent roll, etc.) 

Thanks Mohammed. I will try to renegotiate that as much as I can but they've mostly had a "take it or leave it" attitude since the beginning so I we'll see. And while it may not be a "great" deal, I think that it will be a great property to own in the long run. 

Wondering if anyone ran across something like this and how best to tackle it? I had an agreement to purchase a multi family property last year but wasn't able to for certain reasons. Now I'm ready, but seller has added 8% to purchase price due to CPI (Consumer Price Index?).

I'm already dealing with the substantially higher interest rates on the mortgage this year as opposed to last year. How do I justify an additional 8% to the price? How do I handle or respond? 

With high inflation, higher mortgage rates, the encertainty of a recession or as I've heard many say that we're in a "real estate bubble", what does one do?

Any thoughts or experience with this?

Where's the property? At just under $300k per unit, $2000 per month seems low but tenants are paying their own expenses. Your variable expenses are way too high for 4 units, reduce them by at least 50% and this will have a positive cash flow. Plus don't forget you're paying over $1000 per month in principal. I'd also put more money down on mortgage and try to get a lower rate.

I think this should be a viable deal, good luck. 

I'm doing it, I can't recommend any books, but I would recommend having the experience and knowledge of handling rentals locally. If you have this experience, then it's just adopting to out of state - calculate how you can manage remotely or have someone on ground to manage for you. 

I live in NY and own one bldg in TN, working on #2 & #3, hopefull soon. 

Quote from @Simon Santiago:

Hey BP members of Nashville. I am aspire to buy apartments and multi family units. But I feel so lost on which direction I need to go, is there anyone that does mentorship, or needs an intern to follow around and pick their brain?

 I may be in area next week, maybe we can meet up to chat? 

go west young man, go west. Greeley, good place to start.

Quote from @William Rodriguez:

Hi,

I'm an RE investor in the Orlando area, currently own 2 single family and a condo and now looking to purchase my 1st multifamily. I've had a hard time finding deals by looking at the new listings on the market from my realtor daily report.  Do you have recommendations on productive resources and/or strategies to find multifamily deals in the Orlando/Surrounding areas.

My max purchase price is 450K.

Probably best place to look is on MLS for this. Find a realtor who may also have investment knowledge/experience.

I'm not familiar with this market in Orlando, but I'd say look for the unusual things like: larger lots, basements, seperate garage or sheds, close to public transportation. Some of the unusual things are less appealing for single home buyers, but they could be an advantage for someone who wants a 2 family. Sometimes a single family can easily become a 2 family or live/rent like one. 

Since I'm not familiar with the construction of Orlando, it's hard for me to tell you more spcifically what to look for. But look for the things hat stand out. The things that make a single family buyer less interested but a neighborhood they's like to live in. 

Good luck.

Quote from @Hellary De Los Santos Matos:

Looking for a multifamily home in the tri state area (New York, New Jersey, Connecticut) to fix and rent out. Any good deals?

 You can definitely find some in westchester, not easily, but they exist. 

NJ & CT too, I'm just less familiar with these areas. 

Quote from @Sabrina Sargent:

My husband and I will be living in on the the 3 units temporarily. Our current rent monthly is $2,400 so paying $722 out of pocket for living there till we get more property's saves us $1,678 monthly ($20,136 annually). The property will have at least a $360 cash flow once we move out. Is this something that makes since to do?

View report

*This link comes directly from our calculators, based on information input by the member who posted.

 Makes great sense, it's one of the best ways of getting started. 

The only questions you'll have is why you didn't do this earlier.

It can work, but it can be very tricky for a while untill repairs are done and units are rented. How will you qualify for financing if units are not rented? You can use one unit, so apply as owner/user with one rental - probably your best strategy. 

Otherwise, you may encounter expenses and vacancy (lack of income) for periods of time, be prepared to absorb the losses. If you can get $900-$1000 per month per unit once all is done, it'll be a good investment. Good luck.