All Forum Posts by: Robert Rixer

Put yourself in the sellers shoes. Say you burn 2 months and then decide to pull the plug last minute for any reason, that seller has now lost 2 months of marketing time where a willing/able buyer could have come along. There needs to be an incentive for the buyer to not do this. That's why EM exists. Fully refundable EM serves no purpose.

All about cash flow at that age. Do whatever you can to build income and save up for a down payment. You can do a whole lot more with even 10k and a decent paying job than you can with $0.

Typically you'll have an existing email list of potential buyers. Assuming you don't have one as you're asking this question, you could market it through your social media, paid ads, or turn up to local real estate events and spread the word the old fashioned way

Difficult to pin this down as it can vary wildly even between local submarkets. Especially with low rents and tougher tenants. I've seen 100% variations in mgmt percentages.

I would say the best way is to learn more about the tenant base, the rental income and your expected annual profit and then determine what you'd be willing to make to take on the work/headache of the job.

Doesn't seem particularly attractive on the surface. If you were stealing it then fine but $4,700 on 400k + 90k immediate CapEx sounds like a lot of work for a tough upside.

Very confused. You say it's zoned as a quad but you're looking to re-zone it as a quad? It's listed as a duplex with 2 units currently rented and you're looking to occupy the remaining units?

You can offer whatever you want. If there's a 12-month lease in place, it may not be possible for the owner to perform on that but you won't know unless you ask. From a seller's perspective they may be reluctant, in case the deal falls through and then they're stuck with no tenants. So you should be prepared to put up higher, non-refundable EM. Good luck

I always say good financing doesn't turn a bad deal into a good deal. The financing terms look great but if the true value is $3M, you're $600k in the hole from day 1. Not saying it's the case here, but usually when I see great seller financing terms, it means the buyer is overpaying on purchase price.

As others said, it's local municipality specific - no one can give you a decisive answer here. 

Typically however, municipalities aren't trying to get owners to tear down buildings unless it's safety related. If they put a property into foreclosure, it's more likely to sit as an eye sore and not collect tax revenue.

Playing devil's advocate - give some additional thought to the condo conversion. Property taxes will go up versus keeping as apartments, you'll have to establish an HOA with reserves and you'll be at the mercy of the other condo owner. If they are not great people, they could make life a nightmare.