All Forum Posts by: Scott Wolf

@Tony Rinaldi, the underwriting looks OK.

I'd do 10% for a PM and do 10% for vacancy, as if you do get a vacancy, I'm not sure how quick you'll be able to fill it.

Also, for repairs, based on the listing pictures, and remoteness of the property, I think you're going to be into these rentals more than $5k.  

Good luck!

@Trevor Starr, what @Greg Scott said is right.  Although you used some vague terms.  Making 5k, what does that mean?  Because 5K a month gross is much more achievable than netting 5k per month.  Another thing to consider, is  based on when you're closing, you may not get the full 180 days.  You should try to make sure your sale closes in January to get the full 180 days to close.  The IRS is a pain with these 1031's sometimes.  My firm's 1031 arm can explain fully if you'd like.

@Judy Paley have you contacted a commercial mortgage broker? If not, I'm sure I could make some intros for you.  What's the price point and where are you targeting?

@Tom Edwards are you close to the property?  Having a PM on a two family may wipe out a good portion of the cash flow. Something to consider.  I fired my PM on my property, and gave a tenant a $100 per month break on the rent.  It saved me $100+ per month in management fees, and has already saved me $3,000 on repairs, as I believe the old PM was taking advantage of me.

@Bill Said, 1031Vest is a great firm backed by First American Financial (a fortune 500 company)

@Carl C. according to this release by the NYS AG, that is not true: https://ag.ny.gov/sites/defaul...

"If you live in an apartment that is not rent stabilized or controlled, there is still
no limit on how much your landlord can increase your rent. However, your
landlord must give you advanced written notice before they can raise your
rent 5% or more."

Although, any increase is usually in writing, so I'm not shocked that the State has made this one more confusing as always.

@Isaac El, if you can afford it(the carrying cost & perhaps extra cost the seller may ask for), you can also ask the seller to deliver it vacant.

@Isaac El, I'm not sure if it passed, but I believe there was a law trying to cap market increases in the NYS Senate.  I'd consult with an attorney.  I can recommend one if you'd like.

 Whoever the end buyer is should be requesting the title report, and dealing with any issues with it.  The contract should state that title insurance is needed.  What state is this, and who engages title?

@TamaraFaye Smith, that's ridiculous. When a house is inherited, there are procedures in place for these things.  This sounds very sketchy.  If you were supposed to close last week, why haven't you seen the title report?  Are you the buyer or the wholesaler?

@Account Closed a little more backstory would be helpful.  Who's lease are you trying to negotiate? Where did you get the idea of going to court for a lease?  And if you have a signed contract as a buyer, the seller doing a 1031 doesn't give you leverage.