All Forum Posts by: Zac Boelkow

Listing states: maintenance has been deferred for long time, needs a roof, and A/C. I would like to buy as my primary residence. Also I would require financing. My thought is to work with listing agent and see if I can get concessions (not sure if that works on short sales). Also I would like to replace roof and AC prior to closing. Not sure if that is allowed or not. My goal is to do the repairs and pay as I go, move in, then sell my primary that I currently live in and pay off the new place. Any advice and suggestions would be helpful and appreciated!

I bought a duplex with a section 8 tenant in it last year. The tenant is top notch. The housing authority that handles the finance/tenant are also a joy to deal with. They are very eager to help and willing to spend time with you and work with you so you get good tenants. Ultimately you control the tenant that gets put in to your property. Do your homework upfront and don't rush in to a bad tenant. Most people are great, section 8 or otherwise, so when I hear about the "nightmares" from other property owners/investors I always wonder what they are not doing to prevent themselves from being in a nightmare situation. I have only been in "C" hoods and have had my fair share of success and nightmares and both were 100% my fault...

I am figuring costs around the $150/sqft range. Properties that need repairs are going for $80-$200/sqft. The math does make sense on new. When running the numbers on existing properties I cant even hit the 1% rule... The higher number of units the more the math makes sense on building. Obviously its not as good as getting a property at 50-60 grand and renting it out for $1500/month. Those deals are not presenting themselves as much any more. Thats why I am thinking how I can skin the cat another way.

I am brainstorming ideas to acquire multi's. I am finding in todays market that most of the units for sale are over priced and require too much repairs for them to make sense. So I started looking in to building opposed to buying existing run down properties. I am doing the math on 2, 3, & 4  units. Any advice, tips, & suggestions are appreciated. I have found a couple locations zoned for multi-family in pretty good locations. Also if you are a builder feel free to message me. I'd love to put something together

For me, personally, I am aiming to buy three properties that are well leveraged. I enjoy the thought of scaling my investments. As I scale I want the leverage to be proportionate for my portfolio. 

So I recently ran numbers on a property that I thought had potential. I called a family member who manages rentals in my area (Pasco & Pinellas County). I asked what she charges. I assumed 10%. She told me yes, her company does charge 10%. However, they also take one months rent the first year and if the tenant stays for year 2-3-4-etc then they take one half of a months rent. I asked if this is typical and she said yes. Which makes management fee's cost closer to 15% + rather than 10%. Is this typical? Or is the company she works for over charging? 

Thanks Clayton! All very relevant points!! You are 100% correct on everything you mentioned. As of now the numbers are a guesstimate. We have scheduled with the realtor to inspect it. Then I can get the concrete numbers. I have called a family member, who is a property manager/agent in the area for 30 plus years, and she agree's the rent is grossly under priced. She has a similar duplex two streets over rented at $875/month. I assume I will lose the 22 year tenant for obvious reasons. I also figure on getting this duplex renovated should cost me 2-3 months time. Conservatively, with renovations, this area will bring $750/month easily.

At first glance this appears to be a terrible investment. However, I think it can be rented for closer to 700-800/month. This property is in a great location. Literally down the street from Clearwater Beach. Ofcourse we need to fix it up a bit. My math tells me it its a buy at $95,000 with a monthly rental income of $1500/month...

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@Heath Ryans No not purchase agreements. More like a letter of interest or intent. Hi my name is... I am interested in buying your property... Please call me @... Etc...