All Forum Posts by: Russ Draper

80k does sound high, but not that unreasonably high to me.  Labor around Boston is far more than out in Lowell or Worcester or other places farther away.  My experience is that renovations always cost more than you would expect!

My experience is that electrical and plumbing always cost more than you expect. Is this for all three units or just one?

Around here, a oven/stove is the item that defines a 2nd kitchen.  A plug-in hot-plate does not count, nor does a microwave.

Why is out of state or distance investing so scary?  Instead of vetting plumbers, electricians, cleaners, handymen and more, you just vet a single property management company (and another one as backup).  The PM will make or break things, but if you stay on top of things and are diligent you can find a good remote property and a good PM.

Honestly, you need to jump in at some point.  My guess is you are holding yourself back, fear of failure or similar.

Once you find what you think is a good deal, run it by BP if you like, but don't be afraid to commit!

If the owner doesn't owe a mortgage/note on this property, then its your job to find out how much they will really accept to get this sold.  That 1 unit probably doesn't pay the taxes let alone anything else!  I am sure they really want to sell, your offer should be much lower IMO as your return figures above are quite low!

My opinion of park owners is they are the gatekeepers, they can screw up a sale so be sure to get on their good side ahead of time!  I would pass on a deal if the park owner wasn't amenable to it.  Some park owners have the feeling that they "own" all the trailers in their park, and will screw things up so that the owner basically has to sell to them or move the unit!

Good luck!

Ok so obvious questions, why aren't those vacant units rented now if they are pretty much ready to go?  Have you checked out other units for rent to compare?  Are you being realistic on your rental numbers?  Are there any obvious red flags with maintenance on the building that could be costly to fix (structural, asbestos, etc)?

Too vague, please google a bit and come back with a more specific question!  Here's some answers anyway:

Cash

Family "angel" funds

Owner finance

Working really really hard and saving money

Lottery winnings

Oh, that is not likely they will extend then.  Typically short sales take so long and the seller is the lender so they are used to being in control.  They will figure if you can't close after it taking so long then you won't be able to.

Check this link for some good info:

https://www.thebalance.com/will-banks-issue-an-extension-on-a-short-sale-1799210