All Forum Posts by: Andrew Thomas Vedder
Andrew Thomas Vedder has started 14 posts and replied 51 times.
Quote from @Nathan Gesner:
Rent: $1450
PITI: $1275
That leaves $175 to cover maintenance, vacancy, capex, etc.
If you sit vacant for one month, it would take you eight months to recover. If you get one bad tenant that causes you to lose two months of rent and causes $4,000 in damages, that will take you 39 months to recover.
A brand new house down the street sold for $19,000 less?
I recommend you learn how to analyze and determine what makes a good investment. This one doesn't cover the expenses. You need enough to cover the PITI, plus money to set aside for maintenance, vacancies, capital expenditures, and PM (even if you don't use it). A good guesstimate is that you want to pay PITI and put another 30% - 40% of the rent aside as reserves and then still have some cashflow left over.
Here's a guide that describes what good cash flow looks like and how to analyze a property.
https://www.biggerpockets.com/...
Thanks for your reply Nathan. Yeah it seems like I need more practice at analyzing.
Property: 2018 build 4 BR - 2 bath - 1300 sq ft - 4000 sq ft lot.
Location: Houston, Texas. South of the 610 loop.
Listing status: 36 days on market, marked down from 179k to 175k last week.
CMA: Best match was an identical build that is 4 houses down but it was constructed in 2020. Sold for 160k Dec 2022.
Rental comps: $1450
PITI estimate: -$1275.50 - 20% down 8.125 interest 2.125 points.
Estimated repair cost: -$4750
Pros: New build. New construction (see video 1) in the immediate area. Not in a flood zone.
Cons: 52 active rentals in the zip code (estimated 28,000 people). 32 rentals are at least 3 bedroom 2 bath. Odd layout- Small driveway, backyard is hard to access, washer/dryer hookups in corner of kitchen, some sort of PVC pipe sticking out of the ground near entrance.
What are your thoughts on this property?
Post: First single-family rental property
- Posts 52
- Votes 15
Property: 2018 build 4 BR - 2 bath - 1300 sq ft - 4000 sq ft lot.
Location: Houston, Texas. South of the 610 loop.
Listing status: 36 days on market, marked down from 179k to 175k last week.
CMA: Best match was an identical build that is 4 houses down but it was constructed in 2020. Sold for 160k Dec 2022.
Rental comps: $1450
PITI estimate: -$1275.50 - 20% down 8.125 interest 2.125 points.
Estimated repair cost: -$4750
Pros: New build. New construction (see video 1) in the immediate area. Not in a flood zone.
Cons: 52 active rentals in the zip code (estimated 28,000 people). 32 rentals are at least 3 bedroom 2 bath. Odd layout- Small driveway, backyard is hard to access, washer/dryer hookups in corner of kitchen, some sort of PVC pipe sticking out of the ground near entrance.
What are your thoughts on this property?
Post: Fourplex with issues! Buy or pass? HELP!
- Posts 52
- Votes 15
@Bruce Woodruff Bruce do you think it has termites based off of the pictures?
Post: Fourplex with issues! Buy or pass? HELP!
- Posts 52
- Votes 15
@Ariel Davenport Can you link the comp please? How much do your units rent for and what are they? Thanks Ariel!
Post: Fourplex with issues! Buy or pass? HELP!
- Posts 52
- Votes 15
Hello BP members! I need help! First time buyer. Fourplex for sale in Brazoria Texas. Long story short: unsure if I should stay away or if it's a good deal! VA foreclosed- listed at 127.5K. 2 2 bed 1 bath. 2 1 bed 1 bath + living room. All units have washer dryer connections, fridge, stove. Window AC units. 2 separate stand alone buildings. One seems to have termite issues and the other probably needs a new roof.
See images of issues here:https://ibb.co/stv6jxm https://ibb.co/jLL8KV8 https://ibb.co/M1NxVVd https://ibb.co/sH4P5BT https://ibb.co/MPkTtsJ https://ibb.co/tsGy06N https://ibb.co/TmFGk0K https://ibb.co/175gmS9 https://ibb.co/CnH5T6d
HAR LISTING: https://www.har.com/homedetail...
your thoughts are truly appreciated! Thank you!
Post: Foreclosed fourplex for sale!
- Posts 52
- Votes 15
Hello BP members! I need help! First time buyer. Fourplex for sale in Brazoria Texas. Long story short: unsure if I should stay away or if it's a good deal! VA foreclosed- listed at 127.5K. 2 2 bed 1 bath. 2 1 bed 1 bath + living room. All units have washer dryer connections, fridge, stove. Window AC units. 2 separate stand alone buildings. One seems to have termite issues and the other probably needs a new roof.
See images of issues here:https://ibb.co/stv6jxm https://ibb.co/jLL8KV8 https://ibb.co/M1NxVVd https://ibb.co/sH4P5BT https://ibb.co/MPkTtsJ https://ibb.co/tsGy06N https://ibb.co/TmFGk0K https://ibb.co/175gmS9 https://ibb.co/CnH5T6d
HAR LISTING: https://www.har.com/homedetail...
your thoughts are truly appreciated! Thank you!
Post: [Texas] Can I live in a 5 unit commercial MFH?
- Posts 52
- Votes 15
Originally posted by @Dave Foster:
@Andrew Thomas Vedder, You would be able to 1031 the portion of the units that were used for investment. Your accountant will set up the allocations. In this case probably 80% of the property would be eligible for a 1031. and 20% would be eligible for the primary residence exclusion. So some tax free and the rest tax deferred. Not bad is it!!!
Wow! That's great information. Truly not bad at all. Thank you!
Post: [Texas] Can I live in a 5 unit commercial MFH?
- Posts 52
- Votes 15
@Greg
Thanks for your response. I suppose there isn't a reason why I haven't gotten a commercial loan. I have the 20% down that is required. I suppose I have some work to do and should contact a commercial loan officer.
What benefits do you think I'd be missing out on that a residential property would get?
Do you know if I could roll this 5 unit into a 1031 if I were to use it as my residence?
These are questions I intend to ask a CPA but first I need to find one. Thank you for pointing me in the right direction.
-Andrew Vedder
Post: [Texas] Can I live in a 5 unit commercial MFH?
- Posts 52
- Votes 15
Hello all. I've come across a 5 unit 1 bed 1 bath property that is commercially zoned. I spoke to lenders to try to acquire a loan on it but they said I cannot purchase a 5 unit+ and live in it as my primary residence. Their answer as to why?
"It's just not done. Fannie and Freddie loans are generally for 1-4 unit properties." This blanket answer does not satisfy me but it is the same one I got from 3 different lenders.
I understand everything over 4 units is considered commercial, but is there any way I can use this 5 unit as my primary residence and rent out the other 4 units?
Could I rent out all 5 for a year then move into a unit once there's a vacancy?
Should I try working with different lenders that are closer to the location of the property instead of big bank lenders?
What are my options here?
Thanks in advance for your input.
-Andrew Vedder, Texas Resident.