All Forum Posts by: Yong Yoo

Hi @Phil C. - I purchased one property and just recently rented it out. I wasn't able to focus on the next property due to my job, but I do plan on buying one more this year.

One thing I did notice was that even if I hire a property manager, I still have to be hands on at least in the early stages from renovations to first few months after tennant gets in.

Thanks for checking in!

Hi @Rafael Floresta , below is the link where I continued this thread. I did not go through with this property due to the high repair costs(which I underestimated when I submitted the initial bid). Let me know if you have any questions.

https://www.biggerpockets.com/forums/311/topics/99416-possible-negotiation-help-with-a-mfh-please

So after a few talks back and forth, I decided not to go through with this property.

I asked for a lower amount($7K for repairs + reducing reimbursement to seller on taxes) but they will put the property back on the market. Given the first unit tenant is going to be vacant and needs about $5K in repairs plus second unit also needs $5K in repairs on top of the other big ticket repairs, it was way too much initial capital needed.

Next property I decide to pursue, I will do more due diligence before putting my bid in.

Thanks everyone for your advice/help!

Thanks @John Schmiesing and @Bill Ham !

I thought it was too early in my real estate investing career so I didn't even think about creating a team, but I am quickly realizing through everyone's advice here that building a dependable team early on is one of the best assets to have.

Thanks everyone! I will keep you all posted if I hear anything from the seller.

@Bill Ham Thanks for the advice! I didn't even think about not paying for an inspection, but this is a great idea(proves I am still a newbie...lol). I will keep that in mind for future potential properties.

@Colleen F. Yea... I figured I am a bit late, but I still asked for either 15K in credit to be paid directly to the contractor or fix the property. I probably should have taken more time for due diligence and learned more before heading into a deal that "looked" great. If they accept then great, if not, then I will start over and learn from what happened. Also, read more... a lot more :)

So after getting an estimate, the necessary repairs come out to $17K. The other repairs from the inspection will easily be over a few thousand. Also, unit 1 and 2 need to be significantly repaired (contractors rough estimate of $4-5K+ per unit).

Initially, I thought it was a great deal(and it was) until all these repairs started popping up. I am going to ask for $15K in repair credit and see what happens.

At worst, I lose the inspection fee and a few minor fees for other things.

Lesson learned:

1. Never forget the inspection contingency.

2. Always hire an inspector or a detailed contractor to inspect the property.

3. Try to avoid a quick settlement unless I know what I am doing...

Getting a conventional loan. I am already closing early(30 days) and inspection contingency deadline is tomorrow. Are there any other possible options to trade off?

Hey @Brandon!

Thanks for the reply. Yes, there is an inspection contingency and I have until tomorrow to reply. I will run some numbers and see if the sellers are willing to pay/give credit for some of the repairs.

Will keep you posted.

Thanks!

Yong

Hey BP,

I recently wrote a post about a potential MFH deal where it was listed at 139K and we went into contract at 115K. I already knew I needed at least 5K in repairs for one of the units for carpets/walls/paint. However, after the inspection was completed, there will need to be about 15K(contractor's quick estimate) of repairs that should be done either asap or in the near future.

The offer stated to buy the property "As is" so I am not sure if there is room for negotiatiation. Any advice? Is there a way for me to ask the seller to pay for some or all of the repairs? Or maybe ask for credit to fix the property? (I would rather want to pay less up front than try to lower the purchase amount, but any advice would be awesome)

Thanks,

Yong

Thanks Simon and Erik! Sorry I have been away for a few days and couldn't reply. I will check out the HUD information tomorrow. The property is located in 30 minutes outside of Philadelphia. The area isn't all that great, but definitely safer than a few other places I have been looking.