All Forum Posts by: Tom Liu

Planning to replace a basement utility sink. Opinions on lowest maintanence solution? Thinking about mustee plastic tub. What type of water supply hoses, faucets does everyone get?

Appreciate all opinions so far. It's an estate sale. The family motivated to sell quick. I obviously don't know what the other bids are but I bid about 3% higher than listing price. My agents thought is why go through all the legal issues of a contract, deposit, etc. If we can't work out a reasonable deal. My goal is around half of repair costs but I just worry without a contract then they could just go to another seller. 

I was the highest bidder on a property. Modest 3 br 1 bath. I over bid a little and was pretty happy  I was able to get an inspection before the contract was in my hand. Overall, inspection estimates about $15000 in repairs. Not the worst I've seen for sure but didn't realize during initial viewing. Some roof leaks, electric pole issues, deck needs to be removed aND rebuilt, an additional steel beam to be placed in the basement crawl for additional support and the electrical panel needing to be grounded...among other issues that are minor to me. My agent said don't sign the contract and he will try to negotiate. I'm thinking from a leverage perspective I should sign and negotiate then. That way the seller can't jump to the other offers. They are motivated sellers and i can close quick. Not sure what to make of the situation. Opinions?

So..I am a big boy now. Got my own first rental. Doing well, cash flowing nicely. My mom is asking me for help now. She has a duplex and for the past 11 years it has been renting for $1050. Rents in her area is now $2000 a month give or take. She wants me to help her raise the rent on the long term tenants. The place is pretty much worn out at this point. I would say market value would be $1700 in its worn condition. 

The tenants are renting month by month at this point. Have raised their kids there. Have been model tenants...likely due to low rent. Never missed a payment. Only issue is they do have like about 5 or 6 people in the rental even though it was suppose b 4 originally. Previously, we were counting on the rent and we were hedging our bets and trying not to lose the tenant. But my family is now all established and think it's time to raise the rent. How would you all approach this? Any input would be helpful.

Just saw a duplex that I am planning on placing a bid on.

$77,000 purchase price.

Early 1900s

Property tax - $7000

1st unit - 3br/1b although I think I can value add into a 4br by converting a play room into a bedroom. Still leaves a pretty big bedroom.

2nd unit 3 br/1b

Separate meters

Probably have to replace both furnaces and water heaters but other work appears cosmetic with exception of upstairs kitchen.

Has 3 garages, decent enough shape but will likely change doors down the road.

Small stairs/deck that is old. Not emergent but will change down the road.

Realtor expects $1300 to 1500 for downstairs unit. 

Only issue is its owner occupied ONLY as per zoning requirements. 

I already have one home in another area (about 2 hours away) but I do work in this area which is how I developed interest in real estate. Initially did not want to have a property to live in this area but I think this is blessing in disguise. I can use the top unit for myself and rent out bottom and still fit 2% rule at least with purchase price. With replacing heaters and furnaces and minor fixing up, I my total purchase costs could be $95k to $100k. But it would still be in the 1.5% rule range. I say blessing in disguise because I spend about $8 to 10k in hotels around this area.

The questions I have for everyone is, 

1) Does anyone see a disadvantage in buying an owner occupied property only? 

My train of thought is, I'm thinking that I'm going to use this investment property now as my primary residence and my current home as my second home since it is about 100 miles away from this property. I'm inadvertently house hacking with this approach but it does save me hotel costs which alone would likely cover my property tax and utilities for my unit along with giving me tax deductions.

2) I created a LLC for investment properties but now that it would become my primary residence, does that matter?

I'm thinking that I will still put in a LLC for asset protection. My goal was to place all of my future properties into this LLC.

Any input would be appreciated. Thanks.

Hey all,

I'm a new investor looking for that first property. Really just going through MLS at this point with an agent. Took that first step by starting to view properties yesterday. Went through 7 properties in about 2 hours.

For all you more seasoned investors. How do you organize yourself when viewing multiple offers? Do you just take a notepad and just write down whatever you see is wrong with a property so you have notes to review? Or do you just use the 2% rule, etc. Just looking for the most efficient way because I felt overwhelmed towards the end keeping track of all the details. 

I'm planning to start a LLC for my first real estate purchase. Located in NYC but planning to invest upstate (likely orange county). Would it be advantageous to form it with a upstate P.O. Box address? Advantageous in the sense that public notifications cost would be lower than in the NYC 5 borough region? I heard that PN costs can run about $1000 or so in NYC. Not sure if it would be the same upstate.