All Forum Posts by: Uwe S.

Welcome Michael to our BP world.

Like Jon Klaus said an all bills paid propertie is not really good as investment but if you can check the last 3-5 years rent roll, P&L's and tax statements you should have an reasonably accurate general view of this propertie.
So you can decide yes or no maybe with our help.

You should visit with an (H)ouse (I)nspector this propertie to check the condition. HI want up to $1k for this visit I guess but its worth to spend. So izs possible to negotiate an lower price if he find something.

-Uwe

Time to breach this madness of profiteering.

-Uwe

Page,
I see $995k asking and only $81k gross rents, if I deduct 35% expenses like Bill W said so I calculate $53k NOI. Thats an CAP rate of 5.3%. In this case its only possible to buy cash in my mind or with heavy down starting 50%+.
I looking always for min 10% CAP to secure financing and propertie maintenance for long time hold.
With not much money in my pockets I would stay away from this propertie.

-Uwe

Victor. A thought struck me - maybe absurd.

If you don't receive the funds from Section 8 directly maybe your PM siphon off money from you?
How much monthly rent received you until 09/2012 for the house? How much bedrooms and baths you have? With Section 8 tenant you will get higher rents per month normal.
If you not aware of section 8 tenant in your house the PM sent you only the smaller rent and you have no clue about that.

Like I said maybe absurd thought.

-Uwe

Long time ago here at BP was an calendar where you was able to put your meetings on it. Never seen since 2 years or so.

It would be a great help to place a new one here on BP, so any members can see what scheduled in future Joshua Dorkin.

-Uwe

Bryan A. is from Charlotte NC, long term holder I know and do also some rehabs. Maybe he have more insight in Section 8 in Charlotte and can give you some tips.

As PM you must inform the owner with any variance of tenants! You have an contract with him check this contract on breaches. In your case the PM take some liberties without control from your side I guess.

-Uwe

Sent you the new PM some actual photos of the propertie?
Like Joel said Section 8 is strict obedience of law so your propertie shold not be a mess but maybe the inspection of your propertie was only in September 2012.

-Uwe

Jordan,
for long time hold you must calculate with min 50% expenses from your rental income soyou will net each month $650 total or $7,8k anual, with an expected CAP rate of 10% for investment properties the real purchase price should not be more than $78k.

If you looking for more income so you must use these 50% rule! With actual asking price you gain only 7.5% - interest for financing decent but not much.

-Uwe

Jennifer,
in Wexford you will find what you looking for
#1 in Wexford
#2 in Wexford

Good luck.

-Uwe

Brian,
Like Carl Schmitt said, you should go with the 50% rule for long term holding so your asking price is good for the 10% CAP rate I prefer.
Rehabed 2007 tells me actual not much maintenance needed but in 5 - 10 years this will raise constantly.

I would go with a 20 year commercial financing here you need at least 25% down payment but you pay then $946 per month at 6.5% monthly. Cash flow in this case is too small for me so I would say 40% down is better but this depends on your pockets and/or goals.

-Uwe