All Forum Posts by: Adam McCarty

@Gino Barbaro  the monthly rents now are between 400-500 per unit  there are 4 2 bed units, 12 1 bed and 1 studio.  These rents are low for the area which is why the increase after repairs.  I dont think the utilities are passed on in this area but in one of the buildings i can put in separate electric meters and the other two buildings already have this done.  The price per unit is actually13250 which is low in this area.

I am looking at this deal that includes 2 six plexes and 1 five plex.  It will be one closing and they all share a parking lot.  These are old houses that have been converted into apartments.  My biggest question marks are maitaince and capex.  I have figure them high thinking worst case.  My biggest concern here is that they are boiler heated house.  I havent had any experience with these and dont know what the cost might be.  the two 6 units share a boiler that looked 10-20 years old and the 5 unit has a brand new tank less system.  Also i will be self managing but have put in management for analysis.  Any feed back would be great.

List Price: 250000

Purchase Price:  225000

Repair cost:  35000

Income: before update 7590 after update 9350

Utilities:  1925/1925

Insurance:  225/225

Taxes:  632/632

Snow/lawn Care:  100/100

Garbage: 100/100

Management:  607/748 at 8%

Repairs/maintenance:  1138/1402 at 15%

Capex: 759/935 at 10%

Vacancy: 759/935 at 10%

P&I:  1105/1105

Thank you for any feed back

Adam

@Brent Coombs  not all the utilities are mine but gas and water is. The roofs are fine now but will need to be replaced on all three probably in the first ten years. Rental certificates are in place for the next two or three years. The kitchen and baths are ok for now but would need updating in the future of the neighbor hood improves like I think it will. It is in what I would call a c neighborhood that has an association that is trying to do things to make it more of a b to b+ neighborhood which will take time. The 20% vacancy seems very high I was kind of thinking 10-15 which still means that there is anywhere from 1-3 empty units at all times which seems like a lot to me. Anymore input you have would be great. 

I should also add that one of the buildings has a brand new tankless heat system in it and the other two buildings share a boiler that didnt look terrible old but probably 20 years maybe.  

So I am a trying to figure out good percentage rates for maintenance, cap expenses, and vacancy rates on this deal and just looking for advice.  These buildings have boiler systems which i have no experience with.  They are converted single family homes that seem like they are in ok shape for their age which is 120+ years old.  It seems like a good deal but it all depends on what these expenses will be.  Any advice is welcome.  

Thanks

welcome to the site @Jason Lint  I am investing in the Des Moines area as well and in the construction industry as well. I would love to meet up and talk sometime. Let me know if you would be interested. 

if you are interested in meeting up with other local investors we are having a meet up on the 23rd. Pm me for details. 

welcome to the site. I would look at house hacking if you are looking to get into buy and holds. This is buying a duplex or larger and living in one of the units and renting out the rest. This way you can basically live for free while building equity. If you are interested in meeting up with other investors in the Des Moines area we are having a meet up on the 23rd. Pm me for details. 

I think just about every big name guru has had a weekend seminar in the Des Moines area in the last three months. I have seen about ten come in that time period. It just seems crazy that they can all make money here. I went to one of their feeder nights and there was only about 10 people there. Just wondering if anybody else has noticed a big increase in these seminars recently?

Welcome to the site. I am also in the Des Moines area just getting started in investing in real estate. I would love to meet up with you some time.  Pm me if you are interested in meeting.