First Property - HELP

9 Replies

Hello members! 

A friend and I are looking to get into the multi family unit for our first purchase, neither one of us have experience but over the past few years we have done a lot of research on pricing, and what is the best return for the amount of money we have on hand. 

List Price: 135,000

3 family, 11 beds, 3 baths

Tax: ~5500

Location: Schenectady, NY

Condition : 8/10

The clientele is more low income and it is in a crime raided city but seems to have consistent turnover. 

What we want to know for knowledge is what we should look at as we will be first time home owners, we will not be living there, but the 3 units are currently occupied, we do not have the rent roll for the property yet but will be receiving it soon. Thank you in advance for any help or mentoring that is given to this post. 

Anytime man… We are all different. You will find 1000 different investing styles and it is crucial for you to come up with what you are comfortable with

Look into who pays what utilities. If you pay utilities you have to factor that in for sure makes a big difference. Also I would suggest using an estoppel, it will help in the future if say for instance the tenant claims the last owner required a double deposit because of his bad credit. You can get one for free from this site just go to the files section. Also factor for lawn or snow removal since its a triplex I doubt you will be able to put that on tenants. Hope this helps.

David Espinosa

Originally posted by @David Espinosa :

Look into who pays what utilities. If you pay utilities you have to factor that in for sure makes a big difference. Also I would suggest using an estoppel, it will help in the future if say for instance the tenant claims the last owner required a double deposit because of his bad credit. You can get one for free from this site just go to the files section. Also factor for lawn or snow removal since its a triplex I doubt you will be able to put that on tenants. Hope this helps.

David Espinosa

Thank you for the help! The tenants do pay the utilities, and there is not much grass, but there is a driveway and I would have to worry about that instead of the tenants doing so. 

Hi Darshan,

Have you asked for the below?

  1. the Seller for their tax returns to verify that the cash flow claimed is accurate
  2. current year's tax bill via the local assessor's office
  3. security deposits & ensure that you get the correct security cash deposits at closing
  4. physical inspection of every unit

Are you going to do the property management or will you outsource?

Best,

Originally posted by @Nicolas Lam :

Hi Darshan,

Have you asked for the below?

  1. the Seller for their tax returns to verify that the cash flow claimed is accurate
  2. current year's tax bill via the local assessor's office
  3. security deposits & ensure that you get the correct security cash deposits at closing
  4. physical inspection of every unit

Are you going to do the property management or will you outsource?

Best,

 Thank you for all tips I will take this into consideration, I will not be outsourcing the management. 

Hi Darshen,

Even if you don't plan on outsourcing the day-to-day property management, I would still find the going rate IF you were to outsource the property management and bake those fees into your calculations - so that you have the future flexibility.

Best,