All Forum Posts by: Andrew Michael

@Elizabeth Colegrove  Great input!  Thanks so much.  I will surely get those documents.  

So the garage is not currently rented out but the owner suggested that also could be used for income.  PS I forgot to mention this, he said it has its own meter on the garage.  Anyway each resident has an assigned street parking spot but perhaps I could rent the garage as a storage unit of sorts.  

Lastly, I will not be living there as I just purchased my first home last year as my primary residence.    If only i knew then what I know now :)   Thanks for your help!

@Aaron Montague  Thanks so much.  What if I have overestimated the total value?  Also do you see any glaring hidden fees that I have over looked?  I would still need to to my own title search and inspection correct?  I would have to look into those fees.  Lastly the building looks decent but can you think of any other cosmetics or high cost fix items I may have missed?  Again thanks so much.  I feel like I am on the right track at least.  Our numbers were semi close to each other.  

OK here it goes.  I found a 3Unit apartment building with a detached two bay garage.  

https://www.google.com/maps/@39.643275,-77.715504,...

Asking Price is 122,900. 

Rent comes to a total of 1745 (520, 550, 675) Currently full and owner says tenants are good/ always on time with payment

Annual Taxes 2000

Repair (5000?)  I just put 5000 to be conservative but owner states he just put in new hot water heaters, roof is in good condition, the pics of the yard look like it is really well maintained, etc  The detached garage looks old but has a brand new roof on it and has been painted to match the apartment building.  Also building just passed bi-annual inspection.   

Closing 5000

Monthly insurance 60 

Quarterly water, sewer, and trash 50.  Tenants pay any overages.  

Using the BP Calculator (so awesome by the way) I put in 10% for vacancy, capEX, and property management fees.  

I'm having a little trouble gauging the Estimated value due to lack of experience but based off Zillow and surrounding comparable units I put in 130,000.  Using what i think are conservative numbers, I am showing a RIO of 16.34%.  

Monthly Income 1700

Monthly Expense 1250.54

Cashflow 449.46

As it stands, I have no intention on paying the full asking price.  I am trying to leave myself with a large margin of error since this will be my first solo deal start to finish.   The owner seems motivated as he purchased this property 12 years ago for his son to live in.  His son is now grown and gone and the owner is looking to move south.

Ok if I am missing anything or have made mistakes please let me know.  I appreciate anyone who takes the time to review.  Thanks again!  

@Brandon Turner  I appreciate you taking the time to get back to your members.  Thanks for the information and resources you provide us!    

@Scott Shafer  I believe there was one in early July and perhaps a few before that.  If you search Webinars on BP it will bring up conversations about past events.  They had mentioned posting a replay of the July one but only because there were some miscommunications about the link to the event.  So I was hoping to go back and listen to that one if possible.  Like you, I am not sure if I will be able to make tomorrows event.  Playbacks would be greatly appreciated.  Please keep me posted if you come across an update of any kind.  Thanks!

In addition to Scotts' questions, is there an archive anywhere of past webinars that members can access?  

Thanks!

Hi all,

I wanted to update my original post. As I am reading back through my posts and threads, I realize that it comes across as looking for a hand out rather than offering any type of service in return. So just to clarify:

I am very hard working and no stranger to hard manual labor. Any rehabers or investors looking for cheap/free clean up labor I can help! I have many years of professional landscaping and moving experience and also own my own truck.

I am located in the Frederick MD area but more than willing to work in D.C., Rockville, Gaithersburg, Hagerstown, Baltimore, etc

So far, I am currently working on the following. Not even 100% sure what I am looking for but trying my best to be active, network, and become familiar with my surrounding market.

1) Found a list of local REI clubs to attend

2) Driving around and getting as much literature and history on surrounding properties in my area

3) Combing through craigslist to see what people are buying, selling, and the services they are offering

4) Reading articles on BP, Zillow, and hard copy books that I have purchased

5) Finding seminars to attend when they come to my area

Again any tips, contacts, suggested reading, etc would be very much appreciated. My main focus at the moment is finding a mentor where I can offer my work in exchange for experience. Thank you all for reading:)

@Mike Webb Thanks for the advice. I will absolutely check them out. I have found a handful of groups in the area that I plan on visiting. Seems like most meetings take place in the first few weeks of the month so I am planning on attending in the coming weeks.

Thanks again!

Andew

Welcome to BP @Patrick Amos ,

I too am pretty new but the wealth of information and networking opportunities on here is amazing. Just a suggestion, but an easy place to start in terms of REI is wholesaling. Its a pretty straight forward process to grasp and is a good way to become familiar with real estate terms, processes, and basic principles. Additionally, I am a James Madison University graduate so I am fairly familiar with the area you are operating in.

Anyway best of luck and welcome.    

@Brandon Turner Thanks so much for the suggestions. So far I am loving the site, podcast's, and people on here. So many ready and willing to give advice. Thanks for all your hard work, see you around.