All Forum Posts by: Brenda Reems

@Jaycee Greene I work at the hospital there. Speaking to all the travelers, their biggest concern is housing. I have spoke to numerous of them in regards to this. W we have even lost some travelers due to this. There are only 23 MTRs on furnished finders and only 3 available. These are either 6 month minimum or over $2,000 larger homes. Same with Airbnb. Although from what I gather, everyone uses FF

@Jaycee Greene I did see their breakdown for the last 3 years

Sorry. Newer to the forum. The property is not in Bismarck but is in Minot ND. I think the current rates are accurate. Again, I am new but from my research, they seem like they are good. There are no garages which is a fairly big deal in ND. There is availability to add 5 later. Class B neighborhood. But, it is fairly close to the railroad. 

 I have only been looking at conventional financing at this point. I just called a whole bunch of banks and credit unions. The best I have found is 20% down, 30 year amortization and 6.75% for a 6 year balloon. I could leverage my current home for less down payment with 1 bank but I’m not sure I want to go that route at this time. That just brings my total mortgage payment up. 

Are you saying you would pass on this property unless you could get it for $222,000 or just something to think about?

I am analyzing my first deal. These are the numbers:

4 plex built in 2012. All units are 2bd 1ba and good size. Fairly turnkey (needs some gravel in the parking lot, new flooring in the entry way/hallway, holes in vinyl siding from lawn mower). It is a slab on grade so full windows in lower 2 units. I do not have an inspection report but those were the things I noticed. I was not able to get into the lower 2 units unfortunately.

According to the previous owners numbers: Expenses for 2022 was $13,610, 2023 was $13,869 and 2024 was $9,779

Rooms are renting for $825/mo with $50/mo pet allowance. 1 current tenant has a pet. 1 units lease was just signed in March and the rest are on a month to month.

I would like to convert some of these units to a MTR (huge need in this area). MTRs are running $1,400-2,000/mo. I think this could easily get $1,600 if not more.

Place was bought at the end of 2021 for $245,000. They bought above listing price.

Concerns I have are making this property cash flow as a LTR. Second is the difference in expenses from 2024 to the 2023 and 2022. Was there deferred maintenance? Were they fudging the books? Those numbers do have management fees included. I would manage on my own for now but may not want to do that for forever.

My numbers and the realtors numbers are not adding up. I am new so I wanted someone else's opinion on what an investor would offer with these numbers. It is an off market deal. 

Thank you for your response. This areas is great for MTR. Furnished units are renting from $1,200-1,800 for a 2 bedroom. This duplex has 1 2bd and the other is a 3bd. However, with that the tenant would no longer pay all utilities and would need to furnish. I work in the hospital and the travelers biggest complaint is that there isn't housing available. This town has a military base, fairly good sized hospital (for the region) and a university. 

Does that change your perspective?

I thought I had the numbers down "knew what I was doing". But, now I'm just getting confused. This is a duplex. Not a lot of repairs need to be done at this point. Maybe some paint after current tenants move out and in 5 years or so some other cosmetic stuff. Tenants do snow removal/lawn care and pay for all utilities. I would take out a loan with a 20% downpayment

Selling price: $205,000

Unit 1 is renting for $1,000

Unit 2 is renting for $800

Property tax: $2781

Insurance: $1145

Maintenance and repairs: I calculated at $3,000 (that's what previous owner listed but I'm really not sure.)

Without adjusting any of the previous owners numbers (there may be potential for increase rent), I calculated a pre-tax take home of $149/month or $1,800/year. I calculate the CoC return of only 3.6%. I'm assuming that if the numbers don't change (unless there is rent increases), this would not be considered a good deal, correct? I am a numbers girl, but I am getting confused at this time.

 I am not sure how to do this. I usually do not work with a realtor. So, I just use realtor.com, zillow, FB marketplace and local websites. 

It seems to me that there is some potential for buying foreclosures at auction. I am just starting out but I'm assuming, I am correct. But I'm also assuming there are a lot more downsides to this than I am foreseeing. Lets just say an opening bid is for $75,000 but the market value is $240,000. Even if you have to put another $75,000 into the property, that should still be a good deal. If you can rent it for $2,000 that is a ROI of 13% roughly. What am I missing? Sorry, I have tried finding this question on the forums but I haven't been able to find it. My plan would be to use cash and then finance later so I didn't have $150,000 tied into the 1 property.