All Forum Posts by: Shari Posey

The property I'm looking at is a "rehabbed" 5-plex. The owner bought it earlier this year for $290k but really didn't do much to it other than some minor maintenance and paint the exterior (ugly). There's room for improvement to increase rent about $250/mo. One problem is he has very little documented expenses so I'm using figures from other props on the market. FYI--it sold to the last owner before the peak for $550k.

5-plex in a B-/C+ area. 5 electrical & gas meters, 1 water meter.

Purchase price $375k

Currently fully rented at $3550

Monthly Expenses:

Prop. taxes $406 (1.3%)

Pool $110 (per seller)

Gas $75 (per seller)

Trash $102 (per seller)

Water/sewer $63 (per seller)

Electric $312 (per seller but this seems twice as high as other props)

Insurance $100 (my estimate)

Gardener $100 (my est)

Prop mgr $350 (my est)

Vacancy $350 (my est)

TOTAL EXPENSES: $1968

I'll put 25% down at 4% fixed for 5 years, amortized over 25 yrs.

P&I: $1484

The rents are pretty good but the expenses seem high however every multi-family I look at has high expenses. Pools are common in the area.

IF I can get it for $325k that would reduce the mortgage $200, prop tax by $50 and increase rents by $250 it looks much better.

What do you guys think? THANKS!!

Dec. 11 in Long Beach would be great

Knob & tube is the most common wiring in older homes in my area--very typical. Mercury, Liberty Mutual, etc. will insure knob & tube as long as it is in good condition. I would call an insurance broker rather than a single company.

The good news is the insurance company doesn't exclude American Bulldogs and there's no change in premium.

I'll talk to the tenant about renter's insurance to cover a potential dog bite.

Thanks all!

The dog is an American Bulldog so he's fairly big--probably 50 lbs. We have rented to tenants with both dogs and cats before and only had one problem with a cat owner. The cat pissed on the carpet and it had to be removed but it was an old carpet anyway.

I'm more worried because I have since read on some websites that some insurance companies blacklist American Bulldogs. I'm mad at myself for not checking this out before signing the lease. It didn't occur to me that it could be on the list--I was thinking mainly pitt bulls and rottweilers being on the list.

It's a single family home--no other occupants. Fenced yard. I'll ask her for copies of vaccinations and license. (Actually, she's new to the city so she'll have to get the dog licensed.) She was formerly in a studio and ours is a 2BR unit.

Well, I think I maybe did something stupid. I just signed a lease with a tenant who has an American Bulldog and I didn't even think to ask my insurance company if that breed is on the blacklist. I'm going to check on Monday but I'm wondering what to do if #1 it is on the insurance company's blacklist, and #2 even if it's not on the list, should I require the tenant to get personal insurance? I've met the dog and it's extremely friendly. I asked the former landlord about the dog and he said it was a good dog and he never got any complaints from other tenants in the complex. The tenant has high credit and a good job so the dog really didn't enter into my consideration, although now I'm regretting not thinking about it more.

Any thoughts?

That's a little too high. I was hoping to stay in the $130-175k range. Also, I'm open to a duplex or triplex but that would have to be financed.

But out of curiosity, what does $250k bring for rent?

Deals in what price range?

Depending on the price range I can be a cash buyer and then refi later.

I'm going to be in Nashville this week and I've been considering buying a couple 3 BR/2BA SFR rentals in fairly nice areas--maybe suburban. I've been mostly looking at Hendersonville and Gallatin but open to other areas. I have lived there before and have family there so I'm sort of familiar with the town. I know the cash flow may not be as high as Memphis but I'm hoping the tenant population might be better, longer-term tenants and hopefully get some appreciation after a few years. (I'm just basing this opinion on what I've read on BP.)

I've done some homework on Realtor.com and rents on Hotpads. Honestly it really doesn't look that great but I'm hoping there are some hidden pockets of value. Does anyone know a good agent and/or what I can expect to find?

Thanks!