All Forum Posts by: Zebiniso Nancy Rashidova

Thank you very much for your comprehensive, and detailed reply, Mohammed. You mentioned great points, especially in the case of a sale of the property, which brings me to another point I was thinking of. Can I offer him a purchase option in 5-7 years? Would I include that in this negotiation, or keep it for future discussions? 

Hi BP Community,

My husband and I are rookie investors, and we've been trying to buy our first investment/owner-occupied multi-family for several years. We are pre-approved for a decent purchase price, but, unfortunately, we keep getting outbid whenever we make offers. We're now partially giving up on the idea of purchasing a property in NYC and have decided to continue renting for the time being.

Last month, the downstairs tenant in our current duplex passed away, and now we have an opportunity to rent—or master lease—the first-floor 2-bedroom unit for five years. My landlord and I have agreed that we would pay an additional $1,900 per month for that unit, including two garages, starting in May.

However, the entire property needs at least $10,000 in renovations, including about $3,000 just to paint and make the first-floor apartment rentable. We hope to sublet that unit for $2,500–$2,700 per month once the renovations are complete.

Would it be reasonable to ask the landlord for a 2–3 month rent break and bring the rent on the first floor down to $1,800 in exchange to complete the renovations? Other renovations include changing the wood floor and waterproofing the over garage deck and fix the leaks on the roof. Note: my husband is a contractor.

Also, how would you recommend structuring a master lease? Is there a service we can use to create and submit one to the landlord so he doesn’t have to handle the paperwork?

Your expert advice is sincerely appreciated!

Nancy.

Thank you very much, Adam and David. 
your responses make a lot of sense to me. I like the idea of borrowing money from 401K and making a note for my friends, and need to find out more about it. 

David, I’ll call you later today. 

Also, to be honest, although numbers are promising, I'm a bit scared to bid without inspection lol.

Hey, David,

Id love to chat more about this "pre-commitment" option, it sounds appealing. 

Hi BP Community,

This is my first post here :).

My husband and I are rookie investors, and we are trying to buy our first investment property since last April. Unfortunately, we keep getting outbid by cash offers without inspection. Ideally, we wanted to get a turnkey property, but since it is not working out, we are considering deals that require some rehabbing. We also consider offering cash by borrowing some funds with the interest from our friends. Our loan advisor is discouraging us from this idea saying that to do cash out refinance we will have to wait at least 6 months, pay extra for closing, and pay much higher interest for investment property in the summer as the interest rates are inevitably going to rise. 

What are some alternatives you have tired in this highly competitive market that put you above others with conventional loan?

How would you structure cash out deal on a two, three family investment property with a possible refinancing down the line?

Your expert advice is sincerely appreciated.

Nancy.