All Forum Posts by: Rick Doshier

Can I get a little advise here,

There is currently a deal in my home town that is apartments. There is 3 buildings with 4 units ea. So a total of 12 units. Here is the deal it is listed with a realtor, of course the asking price is way of its league in my town.

The asking price is $320,000... The local county appraisal for all 3 buildings is right at $195,000, this may be a little low, but I wouldn't think much.

The units are currently renting for $350.00 a month 2 bedroom 1 bath (all of them) and water is paid on all units. The owner of the property is in CA, so I haven't contacted him yet.

I kinda wanted to get some ideas from you guys/gals on what a good offer would be. Of course it needs to be low. I know about 2 or 3 years ago they were sold for $120k. I was thinking of offering about $150k.

I will also have to do some research on why they were sold 2 times in the last 4 years.

Any ideas would be great.

I think I can get the rents up on the units to around $450.00 a month

I sure wish there was a way to report all the damages left behind from tenants this way. I bet they would pay up then....

Thanks John,

Yes I can fill those out. I get enough of them, when doing insurance adjusting.

Thanks

RD

Is this something that your CPA will take care of for you?

Thanks

RD

Thanks all for your replies. I really appreciate it.

Thanks

RD

Another question that I have on this deal, is this,

If I start making repairs, and I mean replacing roofs, siding, painting, carpet, and alot of smaller things.

Is all this going to be an improvement to the building, I mean I know it is, but is there anyway that I can make this as a repair and not and not an improvement?

The roofs cannot be repaired they will have to be replaced, I guess what I am saying is that the roofs have to be replaced in order to keep living in them, so that would be a repair.

I am trying to figure out the best possible way to make these as repairs and not improvements, so I can write these items off at the end of the year.

One other question that I do have is, do you guys think I should for a corporation with this business, I mean in order to protect me, or an LLC? Im not sure how alot of that works, but it seems to me that alot of people to form corporations when they are in this business.

Thanks all

RD

Thanks for the responses, I will take a day and go shop around and see what I can find and who will give me the best deal.

Thanks again
RD

REI,

Yes, my parents set the loan up for a 15 year note. They have already owned them for 11 years. That's why there is only 4 years left on the note. Instead of refinancing the houses, I was just going to take over the note for the next 4 years.

Im sure that make sense.

I was kind of thinking that refinancing the entire package and setting payments over a longer period. That would get me some money up front to do alot of repairs.

Thanks

RD

reflex,

That's right there is only 4 years left on the note. I was wanting to at first wait until it was paid for, and then star making repairs, but there is just no more time to wait.

After the 4 years it wouldn't be bad at all.

RD

I hope this is the right place to post this.

I am trying to find roofing material that I ca buy online and have delivered, cheap.

Does anyone know where I can look to find it in bulks, or some where that has alot of overstock.

Thanks

RD