All Forum Posts by: Amy Skaar

Thanks everyone. This is exactly the kind of questions and feedback I was looking for. I figured something was off in my math since it was still on the market - @Jean Bolger, I got my understanding of the 50% rule from another thread where the author talked about doubling the mortgage payment to determine total expenses. Your definition makes a bit more sense to me.

Analyzing some deals on paper with help definitely speeds up the learning curve, so I appreciate the comments.

Thanks.

Hi all,

I'm looking for some help stepping through analyzing a deal. I'm open to any and all feedback - I'm new to this so please go easy. :) What I'd like to know is if I'm too ambitious to start with, and whether or not this is a good deal. I am also looking at some pointers on how I might finance this or if I should start smaller.

My financial situation

I have a stable job with a good income. I own my own home, it's worth 410k, I owe 374k. I have a rental unit, worth $160k, I owe 65k on a 10year mortgage with 9 years to go. I have $110/mo positive cash flow on it. I just went through a separation so I don't have much in cash savings, but I do have excellent credit (740+). I have 50k in 401k's I could borrow against if I had to, and over 30k available in credit cards (don't really want to go that route though). I have about 2k/mo from my job that I could invest.

The prospective property

9-unit 2-bed, 1-bath, brick apartment building, with current rents at $6100/mo. $6700/year in taxes. Out of state owner. Asking price is $595,000 - it's been on the market for 4 months and was listed earlier this year at $699k and removed. Street parking. It's in a gentrified part of town, in the best school district in town, and walking distance to neighborhood cafe's, grocery stores etc. Great curb appeal. It was built in 1926, new boiler, new windows. Looks to be original hardwood floors in good shape. Hard to say what it needs as I have not been through it.

Running through the numbers, I'm looking at $100/mo per unit following the 50% rule, but I'm wanting another set of eyes to make sure I'm doing it right. I think there is room to boost the rents to at least $6700/mo ($750 per unit) if it's in good shape.

Here's how I did my #'s

595k asking (assuming the worst)

10% down

$2850 mortgage. Doubled is 5700, which leaves the $100/mo per unit. This is obviously better with a higher % down, as I'm also not likely to get regular financing with this low of a down anyway.

My questions are

1) Am I missing something in the #'s?

2) I don't have 20% or even 10% down in cash. There may be an opportunity for seller financing here, I'd need to investigate. If it is worth pursuing, what are some ideas on how to finance?

Thanks all for taking a look and offering what advice you have.

Best,

Amy

Hi all,

I just found the site and joined today. I'm a relative beginner to real estate investing, and I live in Spokane, WA. I have 1 rental property with a $150/mo positive cash flow and I'm looking to learn more and add to my portfolio.

Right now my focus is on education. I want to learn more and create a business plan, and hopefully network with others.

My long-term goals are to build my business enough to at least have enough per month from my properties to pay for my son's college tuition (he's 6 now). And then after that, to fund my retirement.

My full-time job is as a Practice Manager in Project and & Portfolio Management. I've got some background in negotiating and marketing as I've also owned businesses in years past.

I'm looking forward to meeting folks and learning as much as I can. I am also more than happy to share what little I know - and I will continue to share as I learn.

Best,

Amy

Hi Nichole,

I'm in Spokane - not too far away, and I'm also a newcomer. Good luck in your ventures!