El Paso , TX · Member since 2016 · 94 posts · 25 votes
Hello everybody!
Thank you for taking the time out to look and respond to my post I really appreciate it. I'm a brand new investor and I'm currently deployed I going to buy my first investment property when I get back in the states spring 2017. My question is what expenses should I be aware of when I buy my multi family home in the Colorado Springs area? I know the weather can be extreme in both directions with the snow and heat but what else should I know? Any advice would help. Also where can I go to calculate these expenses? Thank you all have a great day!
Hi Brittany. Thanks for posting. Aside from relatively fixed costs like property management, taxes, insurance, utilities and HOA fees, controlling maintenance costs can be a bit like herding cats. For the most part, it's a not if but when exercise, where it's important to know projected costs for big ticket items then setting aside each month for that proverbial rainy day.
Hi Brittany. Thanks for posting. Aside from relatively fixed costs like property management, taxes, insurance, utilities and HOA fees, controlling maintenance costs can be a bit like herding cats. For the most part, it's a not if but when exercise, where it's important to know projected costs for big ticket items then setting aside each month for that proverbial rainy day.
Hi Brittany, you have to worry about closing costs which vary based on the taxes and insurance on the property. If the multi-family unit is more than 4 you can not use an FHA loan and VA I believe is the same. I will have to verify. It is also important to look at the age of the Furnace, Roof and Water Heater since they will all be expensive to replace. Currently, there are very few repairs the sellers are willing to do in this market if something is old or even broken but each case is different. One benefit of buying is that the Realtor you choose to help you is usually paid by the Seller.
Thank you for your service and we will be praying for you until you return safely.
Brittany:
Have you considered to start by buying a 4-plex utilizing a Veterans Affairs (VA) no money down home loan???
Many veterans do not know of this.
Expenses vary depending on the property.
I invest in fix and flips and own a 4-plex purchased and refinanced a couple of times through VA Home Loans in Colorado Springs.
I try to spread the word and help as many veterans as I can.
Respectfully submitted, Ernest Adams
@Brittany King a little late to the party here. Aside from expenses mentioned above at closing, multi-unit properties can have a large number of ongoing monthly costs that you would not ordinarily think about.
Utilities. If they are not individually metered, the landlord is on the hook for those. Think water, sewer, gas, electric, cable, telephone, and trash. The more of these that are paid by the tenants the better. Of course they fall back to the landlord if the unit is vacant.
Property taxes and annual fees - Some areas have annual assessments for things like storm water drainage in addition to property taxes. They are typically not a lot but they also add up.
Hi Brittany. Thanks for posting. Aside from relatively fixed costs like property management, taxes, insurance, utilities and HOA fees, controlling maintenance costs can be a bit like herding cats. For the most part, it's a not if but when exercise, where it's important to know projected costs for big ticket items then setting aside each month for that proverbial rainy day.
Hi Brittany, you have to worry about closing costs which vary based on the taxes and insurance on the property. If the multi-family unit is more than 4 you can not use an FHA loan and VA I believe is the same. I will have to verify. It is also important to look at the age of the Furnace, Roof and Water Heater since they will all be expensive to replace. Currently, there are very few repairs the sellers are willing to do in this market if something is old or even broken but each case is different. One benefit of buying is that the Realtor you choose to help you is usually paid by the Seller.
Thank you for your service and we will be praying for you until you return safely.
Hello Kevin thanks for the advice. How old is to old for a furnace, roof and water heater? 10 years, 15 etc? Are there certain brands I should stay away from?
Brittany:
Have you considered to start by buying a 4-plex utilizing a Veterans Affairs (VA) no money down home loan???
Many veterans do not know of this.
Expenses vary depending on the property.
I invest in fix and flips and own a 4-plex purchased and refinanced a couple of times through VA Home Loans in Colorado Springs.
I try to spread the word and help as many veterans as I can.
Respectfully submitted, Ernest Adams
Hello Ernest,
Thank you for taking the time out to reply. That is exactly what I want to do. I'm searching the market for 4-plexes to get an idea of expanses and cash flow. If you don't mind me asking how much do expanses cost you per month?
@Brittany King a little late to the party here. Aside from expenses mentioned above at closing, multi-unit properties can have a large number of ongoing monthly costs that you would not ordinarily think about.
Utilities. If they are not individually metered, the landlord is on the hook for those. Think water, sewer, gas, electric, cable, telephone, and trash. The more of these that are paid by the tenants the better. Of course they fall back to the landlord if the unit is vacant.
Property taxes and annual fees - Some areas have annual assessments for things like storm water drainage in addition to property taxes. They are typically not a lot but they also add up.
Thank you Bill for replying. Where do I go to find out if my area will have annual assessments?