All Forum Posts by: Seth Brown

I had the same problem with with Auto owners.. paid for the policy and they sent an inspector out and told me to get it tested. Luckily my prior policy hadn't canceled so I just told them to cancel the Auto Owners policy.

I work for a commercial property carrier and asbestos liability is excluded in pretty much all policies. I think the concern with it is that if a couple pieces get wind damage or broken then you basically have to reside the house because they can't match it. It's annoying but my siding is probably 40 years old and doesn't look old at all.

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Thanks Josh! As far as the extra room it is just empty right now. I have a friend that I have been trying to talk into moving in. Also, I thought about putting it on AirBNB but I also kind of like coming home without a roommate so I'm not sure what I'll do. This spring I'd like to buy another duplex and move to that one in the same way since I'm not married and moving is pretty easy for me.

I like the advice on the negotiating. If I thought of that when he told me to give him a price I would have started at 60k and then asked him why he thought it was worth $70k and like you said made him sell me why it was worth that. I was a little on the anxious side too, wanting to just get going. I have picked up a couple books this year and read about negotiation and it has helped open up that there is no specific way to do it. I also practice by negotiating with people on FB marketplace.

Thanks again Josh!

Originally posted by @Josh Hill:

Nice work Seth!!!

I love the house hack! I'm curious about one thing, do you intend to rent out that one extra room? Also, I'm going to urge that you look a bit harder into what lessons you may have learned. If the deal sounds solid and if he took your first offer, I would say that's bad negotiating on his part.

I think throwing out an offer first is a good way to negotiate. It allows you to set their expectations without coming off as rude. For example, if someone tells me they want 150k for their house, and I say, highest I can go is 120K, that seems like I am directly telling them that their evaluation is wrong, which makes them emotional and you'll rarely win in that scenario. By telling them my 120k first, it makes them try to bring me up, but what it really does is allow them to save face.

Good Luck

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Investment Info:

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

Purchase price: $69,000
Cash invested: $10,350

Upstairs is a 1br/1ba apartment - Market rent $550 - current rent $500
Downstairs is a large 2br/1ba apartment - Market rent $750 - Current rent $0 ( I live there, was rented when I bought it for $595)
Large detached garage that could be rented as storage - market rent $85 - current rent $0 (being used by me)

What made you interested in investing in this type of deal?

I have a tenant paying me monthly and still have an extra bedroom I could rent for about $300. It's given me the ability to continue to save money, pay off some student loans plus lower income tax. Also the house is appreciating since it's in a desirable neighborhood.

How did you find this deal and how did you negotiate it?

I negotiated very badly since it was my first time buying a house. He asked me what i'd buy it for and i told him 69k and he said sounds good. I found it on a Facebook buy and sell page.

How did you finance this deal?

Conventional OO loan

How did you add value to the deal?

It was under rented by about 200 dollars a month total.

What was the outcome?

The outcome was roughly what i'd planned. The only unexpected thing was I re piped the downstairs water from PVC to pex.. it had a couple leaks and I figured it'd be easier to get it done with me living there vs when it's rented. That only cost $1500.

Lessons learned? Challenges?

Negotiate better.

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I am trying to find a small multi family building to house hack as i mentioned in a previous post. I have been checking zillow ect for a few months and the only ones i've found have found have been on market for +200 days. I did find a 4 plex but the condition wouldn't qualify for an FHA loan and it needed maybe more work than I have the cash for. I realize now they are listed that long for a reason. I have drove by a few places that have been listed for rent on zillow for a long time in the same area. What would be the best way to ask the owner if they'd be interested in selling? Is this a good use of time or am i wasting their time? My thoughts are, they missing rental income and maybe the thought of selling has crossed their mind.

I am pre approved and have the cash for a down payment. Rather than being reactive imI thought maybe being proactive would be a better game plan.

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Originally posted by @Anthony Wick:

You said no leases in place. Does that mean there are no tenants? Technically, "no lease" is the same as a month-to-month lease. You could get estoppel agreements from tenants and seller showing the rent amount per month.

Seek out your local REIA and make contacts for lenders. You will be able to find a lender that will loan you the money. Many times I have found it's not about getting the money, it's about getting the money at the best terms.

Anthony, I will look into a local association! No leases because she rents all 4 units only through AirBNB.

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Originally posted by @Joseph Back:

@Seth Brown Judging by your bio, 700+ credit, 2 years of full time income history, you should have no problem qualifying for a FHA loan. As long as you are living in one of the units they should only require 3.5% down. Would be interested to hear why the banks have said they are denying you the loan.

@Joseph Back The few I originally called were very uninterested or flat out said they couldn't do it. I did meet with a lender and CEO of a small local bank the other day and they seemed to want to make it work. They said they'd be keeping it in house and are currently just waiting on the sellers tax returns to verify rental income. She currently only rents through Air BNB says she makes more than if she rented them out full time. So that'll be interesting.

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@Matt Hurley I have called 3 or 4 but got some solid “no’s” so i wanted to make sure i wasn’t wasting time. I will get a little busier now. Thank you and appreciate the response!

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I currently rent from my parents and graduated from college 2 years ago. I have a full time job and +700 credit. My parents are wanting to sell the house so I need to move. I was looking to buy a duplex and rent the other side but am having trouble finding one. I did find a 4 plex in an area that is growing quickly but the list price is more than i originally planned on spending. Only renting 3 units it’ll still cash flow. I was hoping to use future rental income to qualify but there are no current leases. I can i count future rent with a factor or am i dreaming. Trying to be creative but not sure how to finance.

also my first property and post on here so open to any opinions about residential real estate.

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All Forum Posts by: Seth Brown

Seth Brown has started 3 posts and replied 8 times.

Post: Insurance for Property with Asbestos

Post: Duplex, 05 Fort wayne

Post: Duplex, 05 Fort wayne

Post: Off Market offer and house hack

Post: buying a 4 plex and living in one unit

Post: buying a 4 plex and living in one unit

Post: buying a 4 plex and living in one unit

Post: buying a 4 plex and living in one unit