All Forum Posts by: Ryan Cleary

Thank you for everyone’s reply.  By no means do I want to ruin this tenants livelihood.  She has been honest this entire time but I supposed delaying the inevitable of me finding out.

From her words, she was scared and wanted to find a safe place to live and had to take what the landlord was demanding.  She also mentioned that he charged her $500 since it was taking him so long to fill out paperwork since he has never done it.

My main question is what to do with this seller.  This is textbook fraud, I would prefer not to hire a lawyer but by no means can he get away with this

I purchased a duplex.  The seller provided a phony lease for $1,071.

I come to find out that the tenant was section 8, the real lease that section 8 has is for $867.

We have now found out that the seller had a promissory note and the tenant was paying the difference every month without section 8 knowing.

What are my options here?  This seller has been a nightmare and it has been one nasty surprise after the next piecing together all the sketchy things the previous landlord has done.

I have yet to purchase a single-family home as an investment property. I remember hearing a while ago that there were loans available at 85% LTV. Does that still exist today?

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Beautiful 2 family that will cash-flow when we leave after year one !

I am currently acquiring my 10th long term rental unit.  I have done live-in flips but right now my whole portfolio consists of long distance rentals.

I consider myself very handy and love doing all the work myself but I live in New York and it is not conducive to the investing that I want to do.  So I do Live-in flips here and long term rentals out of state.

With my flips I walk through every inch of the property, make sure to kick the crap out of it to make sure I know what I’m getting.  I do this three times.  First when seeing it for the first time, second with the inspector and the last time the day before closing.

Now, I have purchased several out of state properties and thought I had a great system in place… until last week.  I had one crucial (possibly fatal) flaw.  Not asking the agent to do a video walk-through the day before closing.

How stupid!  I just got severely burned on my last acquisition from the seller being very sneaky.  Basically, after the inspection he threw a random tenant in the property paying $400 below market rent (it’s a side-by-side duplex, one side paying $1,200 and he decides to put someone else in for $800?)

The tenant never paid rent again and he noticed them destroying the property.  Not only does he not disclose any of this but he happily tells me right after closing.

So anyway, shame on me.  Now I know for the rest of my purchases and the great thing about this business is that I won’t even remember this eviction 6 months from now.

Cheers! 

Just closed on a long distance deal.  I “was” buying duplex with one unit occupied and one unit vacant.  I ended up buying a duplex with both units occupied and the new tenant not paying any rent.

So in short, contract was extended to 60 close because I was selling another property to pay for this one.  The contract, inspection and appraisal were all performed with one unit vacant.

I still can’t understand the thought process but the seller decided that he didn’t want to wait the remainder of the contract without receiving any income on that side, so he threw a tenant in there who never paid any rent.  So the seller started the eviction process with the eviction date as the date of contract close.  Nothing ever was followed through.  Nothing was ever disclosed, not even to the listing agent.

So now we receive the keys and find someone living there.  We immediately post a 3 day notice/ cash for keys but how do I proceed with the seller?  

Hey Joel!
I highly suggest you do some more research on how to analyze a rental property before you go any further with this transaction.  Luckily you are in the right place.  I would hop on a calculator and spend a few hours trying to find figures specific to this deal.  If this were me, I would analyze the numbers as if I was renting it out tomorrow rather than a year from now because the numbers "should" be much more manageable a year from now.  In short, if you can make the numbers work today, they should work better next year.  Good Luck!

So, this may be an unpopular opinion on a real estate investing forum, however, I am in contract to purchase a beautiful home as a primary residence. I will live there to fulfill the residency requirements and then utilize the property as a STR in an area very friendly to investors with great regulations already in place.

The property is zoned as a duplex but has been opened up for years as a single-family and frankly will never make sense as a duplex.  There is only one kitchen, and converting back will be expensive with an awkward layout plus a terrible parking situation that could develop.

Also, financing in the area would be 15% down with a 2 family loan or 5% down with a single-family loan.  

The only way for this deal to work out is if we are somehow able to get a single-family appraisal.  I reached out to the building department and unfortunately their contact wont be in until Wednesday.  I know this situation is highly dependent on the town but if anyone has any insight it would be greatly appreciated!

In the area where I would like to purchase next there is a conventional loan limit of $647,000.

Sellers won’t budge at $759,000.

The property is properly priced.

This would be a primary residence that I can also operate as a str. It also meets and exceeds all of our check boxes.

I can only put 5% down comfortably.

With 5% down and a loan limit of 647,000, I have a discrepancy of $75,000.

How can I make up for this $75,000?

More then likely seller financing will be laughed at

Let’s start with the math.

Purchase price: $760,000

Conventional loan limit for area: 647,000

I was looking to put down 5% of purchase price: 38,000

This leaves me with a discrepancy of $75,000.

This will be a house hack with incredible upside potential and appreciation.

I know I can ask the seller if they would hold a note on that $75,000 but I would say that most sellers on the mls are probably not open to that. What could be some other options?

This property fits and exceeds all my check boxes and I know it’s worth going through the trouble.

Thanks!