All Forum Posts by: Nichole Wall

Anyone want to help me on this?? PLEASE??!

Ok BP friends...I've spent quite some time analyzing this deal. I still have some due diligence to do like go out and take a contractor on the property to see if it needs any fixing up. First question to that...should I be doing that before or after I lock up the deal?? 

Ok, let me get into the analysis of it...this is a 6 Unit Multifamily Building. There are 5- 1 bedrooms and 1 studio apartment. The rents are as followed: $680,$500, $650, $675, $675, $650. Which totals $3,830/month rental and $45,960/year

EXPENSES a year

taxes:             4,189

garbage:            182

sewer/h2o      1,200

electric/heat 10,000

ins                  1,002

mgmt             4,596

=                  21,169 a year

Gross income:        45,960

                           -   21,169

                           =  24,790 a year

He's asking 119,000 for the place however he's really motivated to sell. He said, "You'd be surprised what I would take for it." He said he's willing to consider any and all offers. Which I'm guessing I have some negotiating power here. It needs a roof and siding and the chimney fixed on the outside (~$12,000). I haven't been inside to check it out yet. That's next. He says it's sound though. He's not willing to do a seller financing on it. I think he just wants the cash to buy some other investments near him. He also said he knows a lender that will figure it repair costs in which his money will sit into escrow until the repairs are done on the place. Repairs will be fixed with his money right after closing. I just have to get an estimate from a contractor and his money stays in escrow until it's fixed. 

The reason why he's selling is he had a trusted property management company taking care of this place but the owner died in the summer and now 3 of the 6 units are vacant and he knew them personally so he knew his place was being taken care of. Now it's not up to his standards and he's in NYC and said he could sell this place and get two in the city and oversee them himself.  

There is a mentally unstable lady in one of them which he said she can go if I wanted. She's been there 10 years and someone pays her rent for her He also said her apartment is atrocious. (Yay). She does have her own entrance so she doesn't bother anyone. So that would leave it down to 2 rented and 5 vacant when purchased if I wanted her gone. 

All of the units are on one electric and one heating. I don't think I can or would switch the heating over. However, I'm wondering if I can for the electric. 

I have a couple options for financing here:

I could get a loan and have a partner put a down payment.

I could offer cash in which we figured we have (with the partner) $37,000 (which is really low I know, but hey you never know!)

or I could do the lender that does the fixing of the property but I haven't figured out how to run the numbers on that one yet.

All I know is I will be offering lower, I'm just not sure yet. 

Ideas on this place? Anything I'm missing? Please let me know! Thanks! 

After talking it over with my husband, we decided that this piece of property isn't worth what we could do to it and there's some hidden headaches. He says it's not big enough for leasing and that we would need at least 100 acres to keep hunters happy to want to lease on it so with that said, this idea is scrapped however, I just came across another investment last night on a 6 unit multifamily building that I'm now looking into. :) Thanks for all the feedback everyone, it is greatly appreciated! ~Nichole 

How's the mentoring going now that you're a month in? I was looking into his mentoring as well but wasn't sure. 

Thanks for all the great feedback everyone! I will let you know what I decide and how it goes. Thank you! 

 I will let you know how it goes Lareen! I will be blogging about here shortly. :) 

 I'll have to look into that! I know it's been sitting vacant for over 10 years so I know there's gotta be some pretty good wildlife roaming around there. 

 Yes, this is a great idea! I know my husband would be utilizing it! :) I don't know anything about this but now I think I will look into this idea as I think it would be great for leasing. 

 Interesting read, thank you.

 Thank you Leslie! I will need it! :)