All Forum Posts by: Anthony Cosgrove

Well, I picked up this tip in the podcast. I was driving around about an hour outside of Omaha, NE and saw a very nice 4Plex with a for rent sign in one window.  I thought, what the heck and called... I introduced myself and asked if they would ever consider selling. I was expecting to be told no but....they are interested. The owner gave me tons of information in our first conversation and said we could get together sometime soon to look over details or see the property. Here are the details

Units are 2 stories side by side brick construction

units a,b &c are 2 bed 1.5 bath

unit d is a massive 3 bed 1.5 bath with attached 2 car garage

unit a & d have been recently remodeled and updated

rents:

unit a $650 (newer tenant)

unit b $450 (25 yr tenant)

unit c $450 (25yr tenant)

Unit d currently vacant but usually rents for $1025 or $950(tenant did snow removal)

newer roof

3 newer ac/furnace

Tenants pay gas and electric 

Water is about $200 per quarter

Lawn is $25 a week

Taxes about $2500

On the assessor site it was recently appraised for a little over 150k and another 4plex in this city sold for about 170k and was on the assessor site at 176k

So if I make an offer, what should it be?  I have never made an offer like this before and don't want to offend them.  The place looks very well taken care of.  They are not interested in seller financing, but I don't think I would need that.  They are getting older which is why they might consider selling.  I would not consider them in a hurry or "motivated".  Any opinions of what you would offer or do next would be appreciated!!!

Welcome to Omaha @Mike Pichik! Great city to live and invest in!

Thanks @Matthew Swisshelm! Still kicking things around.  We had some hail damage on the rental from that storm that came through a few weeks ago, need to see how that pans out.

Currently kicking around the same debate in my head. Thanks for all the replies!

Thanks for the advice guys!

Thanks @Steve Vaughan and @Justin Fox.  Omaha is a very stable market.  Right now is a sellers market and houses are selling very fast.  Good deals will continue to be hard to find as I really want to get a good fourplex.

Thanks for the input Justin!  I agree with you.  The 15k I would get out of the deal would go toward new properties and this one would just sit for 15yrs as I don't need the cash flow and the property has its own fund of 5K for expenses.  However roof, HVAC, water heater expenses could be coming soon in next few years.  It is a great rental in a fantastic neighborhood, but I just don't think its a good deal... 

Hello BP!

I am considering refinancing my SFH that I have been renting for the last 3 years. Below I have listed the current numbers and the refi numbers based on a concervative value of 105k. My problem is that I am wondering if I would be better off selling as I have a lot of my own money tied up in this house since we bought it in 2005 at the height of the market. I think I could do much better with the 40-50k I would get if I sold. Based on my research for the neighborhood I think it would sell for 110-115k. So what are your thoughts?? Should I sell or refi?

Current Numbers:

Purchased for 95k in 2005

Note Balance $59,830.20

Rate 5.75% 30 yr fixed

Monthly Payment P/I $675.35

Rent $1000.00

Cash Out Refinance Numbers

Cash Out $13,885.73 + about $1500 from our escrow account

Debt to be paid off $60,000.00

Est Prepaid Items/Reserves $2160.27

Est Closing Costs $3289.00

Loan $78,750 15 yr fixed

Rate 4.5%

Monthly Payment P/I $831.09

Rent $ 1000.00

Rough Numbers If I Sold

Sell Price 110k

Loan Payoff 60K

Commissions/Closing costs 8k

Cash to buy a better deal 42K

So based on all this, what are your thoughts BP?!  Thanks!!!

Thanks for responding guys
@Joel Owens I am not sure the exact percent it is rising... Living in a quad is not what we are looking to do, but we do want to own one ASAP!
@Al Williamson I am fairly certain in the next year I will be able to sell it and get my equity out...I just don't know if we should sell it or keep it in our portfolio to be. The furnace, AC, water heater are all old.

If I want to be on the path toward mid sized apartments, is selling and getting a quad the best path or keeping and trying to raise other capital for the quad?

Hello all!
I need some advice about moving forward as an investor and what to do with my 1st property.

A little background: We bought this 3 br 1 bath house in a great neighborhood before the crash for 95k. A year ago we bought an awesome foreclosure and decided to enter the world of REI. We moved into the new house and have rented our 1st home for a year now....and I LOVE IT! I really want to get into Multi-Family properties. So my question begins with what to do with this house.

I owe 64k on it. It rents for $900 and the PTI is $600. I have saved up a very nice safety net for repairs which is at about 7.5k

My RE agent buddy did a comp for me last week as I was thinking about refinancing and getting some equity out for a new investment and it came in at around 90-100k.

However with a cash out refi I can only go up to 75% of ARV..so after all is said and done the payment would drop to around 510 on a new 30 yr and all the cost of business would eat up most of my cash out leaving me with a little under 5k......ugggh I feel like that 30k of equity is just trapped and don't know what to do.

I still need one more year of landlord experience to move on to bigger abd better things, so selling this year seems out of the question.

Do I just leave well enough alone for the moment? It is currently on a 30yr at 5.75%. The cost of the refi would take at least 20 months to get back.

Should I keep it long term and refi to a 15yr to try and get it payed off asap??

Again my goal is to move into small multi family and apartment sooner than later.

Thanks in advance!!! -Tony