All Forum Posts by: Brandon G.

Hey guys, 

I'd love to know about any future meetups and get network with some local people.  I'm about 30 miles outside of Nashville toward Hendersonville.

That's disappointing to hear.  I was hoping I could invest in a property that I know of that is undervalued and end up with instant equity that would help me leverage another property, but it looks like it's not going to happen that way.  

Thanks everyone for the replies.

Brandon

Thanks guys for the responses and the great tips, I appreciate it.  I was also thinking around that neighborhood of pricing as well, which I don't believe this seller would most likely consider, but since I do not have experience with negotiating deals yet I wanted to see what others thought.

Thanks again,

Brandon

I would like understand this concept correctly.

If I purchase Property A-Duplex for 70K and it is worth 100K and I put 10K down, I will then have 40K in equity in the property upon purchase.  If I would then like to purchase Property B-Duplex and use the 40K equity from Property A, how exactly would the bank view this.  Would they see me as having 2 loans on Property B (the equity loan and the mortgage loan), or would they roll all of this together and make it one loan?

Suppose Instead I used that 40K in Property A equity to put down two 20K down payments on Properties B & C.  How is this viewed?  Is this something banks discourage?  It seems that leveraging (using) the mortgage payments to build quick equity and then using that to fund new investments would be a much faster way to build a portfolio of properties rather than only saving from my W2 job each month.  Any information on this topic is greatly appreciated.

Thanks,

I've been looking for single and multi-family investments for a while now.  A man in my neighborhood has 6 properties (2 duplexes, 4 single families).  I'll list the details below.  I have my opinions on what I think, however I'd like to reserve that until I get some other feedback.  This is his proforma.  I just received this today and as of yet have not evaluated the actual properties myself.  I have looked at them with Google Maps.  We live in Tennessee near a state line and property 6 is actually across the state line in Kentucky.  All properties are currently rented.

                                   (YEARLY TAXES)  (COUNTY TAXES)  (EST. MKT VALUE)  (RENTS)

Property 1:                       200.00                   504.00                   92,500.00               700

Property 2:                       221.00                  559.00                     92,500.00              615

Property 3: (duplex)         457.00                 1155.00                   125,000.00         575, 575

Property 4:                      471.00                  1190.00                   125,000.00         600, 550

Property 5:                      173.00                   333.00                      59,000                500

Property 6:                      ????                       683.26                      80,000               650

He hasn't given an exact asking price other than stating the est. market value is $574,000.00.  I presume this means we would start negotiating there.

This produces a highest potential monthly income of $4765.00.  I would like to think I could get about $200 a more per month total (all units combined) in rents over a short period, but I don't calculate that into my numbers.  

The quick way I have run the numbers is as follows: 

Max Monthly Income (4765.00) - 50% rule (2382.50) = 2382.50

I would like to be able to cashflow a minimum of $1500 a month, so that would mean I would have to get my mortgage to: 2382-1500 = $882 a month, which seems impossible, so I'm curious what my options are, what others think of the deal, what other information you would like to know to help analyze this deal, and anything else you may want to offer.

If it would be helpful, I can get the assessed property values and post them.  All properties appear nice, clean and tidy, though I have only seen them from the outside.  I have seen other properties he has owned and they have been well kept.

Thank you very much for your time and help,

Brandon

Thank you for your reply.  So do most people keep a separate spreadsheet for each individual property?  If it is a duplex, would they have one spreadsheet for the property or one per door?  I'm curious how people keep track of receiving rent and all of the various things that go along with managing multiple rentals with excel.

I'm managing one single family and we're looking to buy our first duplex.  I'd like to create an excel spreadsheet to manage when and what rent has come in, what expenses are and generally everything that needs and should be kept up with on a monthly and yearly basis with rental property, but I don't really know where to begin to create an effective spreadsheet.  I've checked the file resources and see many, many different options, but most deal with calculating things or most aren't just basic management.  Perhaps this is too common, but I've never created an Excel spreadsheet and I'm afraid I'll not think of or leave out very important things.

Does someone have an example of how they create or manage their properties with Excel and what they've included.

Thanks,

Brandon

This is all really awesome info.  Thanks everyone.  I'm glad you mentioned the attic and the template was great, I'm going to download, modify and use that.

Before the tenant moves in we're going to walk through and have them sign part of the lease that explains what damage is and is not present and to ensure the smoke alarm is working and there are no issues with the house.  I don't want to leave out something I wish I had included because I couldn't think of it.  

What areas do you guys have verified for a walk through before a tenant moves in.

Thanks,

Brandon

Thanks for the response. We wouldn't be using a relator so that would help save us there. There are records of the monthly costs, but we haven't gotten that far along yet. Unfortunately, our situation doesn't allow living in one of the units, so that will rule out an FHA loan, if my understanding of them is correct.