cash on cash return

Your expense calculations should include possible vacancies and repairs. What are the "freshening up" costs. Also should have 6 months of operational expenses in the bank. Monthly rent at $650, what are the terms on the existing leases?

Michael Mangham
MD Home Acquisitions LLC

Perhaps he knows something he doesn't want to be known. It is strange that your agent wouldn't want you to know something since hopefully he is there to protect you. Of course, perhaps he was just trying to protect his commission.

it was freezing and windy and she wanted to get out of there and told postal guy where selles agent office was.i was so mad because he said "I probably shouldnt be saying this"then she cut him off.I hate not having all the info.I hate not knowing everything.all tenants are inn various stages of 1 year lease.Sellers agent lives in the top floor 1br.Downstairs 3br tennant pays in 3 month increments by visa.alternate upstairs 1br occupant collects rent and helps with maint.seller is known slumlord all about cash returns.siding is faded and parking lot needs to be graded.other residences in the area are big bucks this is a premium location.dirt floor basement brick foundation.original 100 year old super wide shutters were cool.rents are 575x2+800.

They are hiding something important that YOU should know.

I overlooked the###'s after reading about the agent stopping the conversation.

RED FLAGS!!! Disclosure!!! Save MY Commission= $$$$

Sounds awful funny to me, but, happens too often.

Covering their but, and NO ethics/morals. Bet they'd tell their Mother,brother sister, aunt or uncle....maybe even a friend...depending on how much they needed/wanted the money.

I've had RE Agents/Realtors/Brokers tell me, "I don't WANT to KNOW whats WRONG with it"...when I was listing the property for sale with them.

And YOU should know why they don't want to know!

WATCH OUT PEOPLE! Be careful and DON'T trust ANYONE!!

information is power and i just called and left my agent a message.the postal guy said "hopefully you guys buy this i got a little info for you"that was it she cut him off.she doesnt want me to do the deal anyway.she knows i only have one bullet in my gun and a misfire means im outta buisness.I wont sleep tonight.I have found another 3 unit about half the price reduced to 96k bout 15 miles from this one hoping to get broker notes tonight.

Some caution flags go up based on your discussion. Sounds like selling agent is trying to avoid disclosing some info so I would dig further. Your slum lord description usually leads to finding deferred maintenance that might be present that you will have to deal with, i.e. roof, systems, etc. Can you check on any past building code violations to get an idea? If I am correct, the building is old and with new EPA laws effective next month on lead paint removal etc., do you have any issues? Are your costs based on true costs over the last two years for the building and considering potential increases, i.e. oil. Did I hear you say one tenant charges rent every three months? What is your vacancy factor in your analysis? Do you have roomm to increase rent based on market if expenses run higher than anticiapted. Just a few questions to ask yourself, there is something off here.

What is your strategy going to be? Lease/purchase, assignment of contract, fix/ flip, buy and hold. Decide what you want to do and read every post on this site related to your strategy. Go to Real Estate investment club meetings. No one can do this for you, read, study, read, study and read, study some more. Get Deans books if you don't have them already. Read, study, read, study then get out in the real world and apply what you have learned and be prepared to learn some more, make mistakes and learn some more, read, study, read, go to Real Estate Investment club meetings. Meet and network with people ACTUALLY making money in this business, read, study, take action and repeat! Don't take advise from people that have not done a deal, they only provide theory and half the time they are full of it!

Good luck and go get em!!
Michael Mangham
MD Home Acquisitions LLC