All Forum Posts by: Sherwin Vargas

Heard back from the husband after 2 weeks thanks for your input really helped with everything. I will itemize and write the check with both parties names and record condition of the house. I will accept them leaving not paying whatever because i dont want her to decide to stay in the house pay and then i have to wait until end of lease for them to leave in turn making me wait to sell.  

I have some tenants who are leaving each other. I told them they could break the lease with no penalty ( i really wanted them gone to sell). SO I been in contact with the wife and told her everything and she agreed to breaking the lease with no penalty as long as house was in order. 

I sent a little statement to which she agreed too and we are planning on her leaving the 15th. The husband has already moved out the house and the wife informed me he is not planning on paying rent in february since he already moved out and she is the one there with her 2 kids. 

My question is I have not heard anything from the husband. both of their names is on the lease. If the 15th she is gone am I ok to change locks and return their security deposit to her no problem if they did not pay on the first since she is on the lease also. 

I have tried calling and texting to no answer. She said he got a new number and sent me that one to which he has not answered either.  I just want to make sure I am not liable for anything if I give her 1/2 the security deposit back on the 15th when she is gone.

Thanks for anyhelp

Let me know what you guys were do, Our gut is saying to pull out but looking for opinions 

we would have to pay everything and all past due per condition of bank because they are ready to foreclose on current owner which is a friend of ours. 

multifamily sale from bank - 132,500 cost

To aquisition home need to pay 12500 in past due payments and growing 

past due bills on home, 
Taxes are up to date

Water + sewer $5019.98

Currently receiving $150 daily fines from city today is day 6 - $900

Needs about 4-5000 to get rid of the fines and fix problems the home has. 

total acquisition and get home in ok condition : $19319.98

Total cost of home $140k about 

Comparables as is at about 160k 165k 

Should be move forward or should be back out. We could stand to make 20k possible things always sneak up. 

Current gross rents 2450 

we would be cash flowing about $1000 a month maybe more. 

Would you move in on the house and acquire it or back out of the deal? my big issue is putting in 20k to possibly in the future make 20k but not certain is risky. 

down payment I was thinking of asking five thousand in order to make the contract holding the home for them for 6 months. He has been fixing his credit when he moved in and has the income to afford the house. He decided on five thousand below market value nothing written but with a handshake which is my im getting this contract done asap to not waste my time or his. 

Thank you for your help 

Own a single family, after looking at comparable rentals and talking to agents that work in the city we decided to rent at $1750 a month.  A month later 2 bedrooms went from 650-750 a month to 1100 a month( my house is a 7 bed 3 bath with garage and yard space. not having much experience was probably the cause and listening to friends and family/the rental agent since i wanted to charge 2000 a month. tenants lease is almost up, great family really trying to get their finances together to buy the house within the foreseeable future. 

Should I raise their rent to market prices? probably 2200-2500 a month or leave the same since they want to buy the property within a year or two and really take good care of the property? 
Should I also draft up a contract with a nonrefundable deposit giving them a time frame to purchase the property? we are ready to sell since their lease is up but are willing to wait for them to be ready to purchase

Just looking for your opinions and thoughts  

not sure but have two cousins who do roofing for the city of boston, they do side gigs on weekends so once you get pricing from companies let me know I could have them contact you.

Thank you great advice I told him to walk away from the beginning but he wants he full explanation why so I am working on that. Will def advise the him to talk to the bank try to go lower. 

Thanks! 

Thank you that actually did help and I know I made a mess of it, it was late and a long night of trying to run numbers.

baseline 1 - dont touch it stay away and just lose the 100k is friend owes him. 

Baseline 2 - take control he would break even if lucky. most likely lose a couple of thousand. still lose the 100k 

second senario - invest 20-25k(14k for past due mortgage payments) bring up to acceptable standards. make around 15k. after investing 20-25k cash. or hold on and collect rent about 2550/month around $1000 after expenses. 

I told him I do not think its worth it. he is doing it to try to get some money out of it from his friend but the work, traveling, and monetary investment necessary just to possibly make 15k in a few months doesn't seem worth it what do you think? 

This may make no sense but I will try my best

my father is in the process of taking over a home of a friend who has missed a ton of payments and let the house go to ****. the reason my father is taking over the home is because he owes him a ton of money and gave him the equity to attempt to pay off the debt. we want to see if the house is worth fixing at all for my dad to try to take some equity out of it or if the headache is even worth it.

The guy owes me father > 80K

HOUSE. due to bank 130k he is allowing him to take over payments. current owner hasn't made payments in over 8 months its in pre foreclosure but bank is willing to do a short sale to my father. we will have to pay 12k in cash for the missed payments and would end up owing 120.

house is in providence ri near broad st. the house needs almost anything you can think of.

we have been in contact with all the tenants we have sent an exterminator to begin the process of dealing with cockroaches, bed bugs, ants, and terminates.

we have electrical issues a lot of the plugs in the house and light sockets do not work. upon having an electrician visit the house he stated that somebody had the electrical updated in the basement but it was not connected to the knob and tube in the house. they began the process of updating the electrical but for an easy way out t hey only did it so it would pass inspection. he said he would have to get into the wall to see exactly the extent of the electrical repair needed.

plumbing is also an issue and within the next year will need all 3 new boilers. the yard has a small parking lot next door but no fence or boundary showing where the property ends. the roof has a couple of years left in it.

yard has to be fixed cleaned and asphalt or cement.

all basement windows need to be changed and fixed.

the interiers are all very dated and would need to be updated as tenants move.

Last, the porch is completely slanted on all floors around a 25 degree angle slope downward. which would all have to be fixed.

my father and I are trying to figure out if its worth it for him to pay the due payments and take over the house for 130 and fix it up. to try to take as much money out of it as possible. or is it worth it to just let the house pass.

my father just does not want to invest a ton of money into this house minimum 12k for missed payments plus fixing everything it needs and then have a huge headache and a ton of work to make a few thousand and a few years. he says if its a lot of investment needed he would rather just let it go and not have to invest 30k to hopefully take out 15 k in a few years.

I just want some additional opinions if he should go for it or back off of it. what you other investors think. the fact that it is fully occupied to makes us feel like the process would be a lot more difficult and time consuming. we also live an hour and a half away and have fulltime job plus 5 other properties.

Let me know if we should move forward with it or back away.

Hey Pawtucket area investor here. I think there are still some gems in Pawtucket but its disappearing quickly. 

got a multifamily under contract in october 2016 for 170. not the best deal but we really loved the place. comparables now are in the 200-210 range. 

Also was looking to sell our single family last year in september got an appraisal at 170k today comparabbles are selling 190-200k. I personally love pawtucket and thought it was a great place to buy. I would keep an eye on the market see what its doing but if the numbers make sense then do it. 

I would definately keep an open mind and compare houses and prices. If pawtucket keeps moving up not going to be worth it for us amateur investors.