All Forum Posts by: Jimmy NA

Come on Mike,
Several of these things you mentioned can have a dollar amount assigned to them and they can be factored into a purchase. But, how can you possibly predict the future and then work that into the purchase price? Without a crystal ball how could I possible know "evictions, legal costs and damage...lawsuits." It I tried to put a dollar value on these potential problems I would have to get the property for free. Even me the newbie, knows there is some uncertainty you must accept to be in the business, right, Mike?

What am I missing for expenses?

Here are the facts on this potential purchase: (2) adjacent properties, (2) deeds, owner wants to sell them together.

First Property: (3) units
Gross Rents $1625 per month
Water/Sewer: $600 per year (approx.)
Insurance: $2800 per year (quote/ insurance company, non-owner occupied, seems high)
Taxes: $145 per month ($1740 per year)
Maintenance: $150 month (approx.)
Financing: 80/20/5, 1st @6.87%, 2nd @7.87%, 5% down-payment
PMI: 1.05 % loan amount
Vacancy/Rent Loss: 10% of gross (???)

Second Property: (2) Units
Gross Rents: $1150 per month
Water/Sewer: $600 per year (approx.)
Insurance: $800 per year (quote/ insurance company, seems low)
Taxes: $145 per month ($1740 per year)
Maintenance: $150 month (approx.)
Financing: 100% of purchase price @7.87%
PMI: 1.05 % of loan amount
Vacancy/Rent Loss: 10% of gross (???)

Tenants in area tend to be some-what unreliable. Turn-over high. Decent location, could be worse. Property is fair to poor condition.

Whats it worth?

I noticed that one local agency in my market gets all the homes that are taken back by the bank(s). How does this one agency get all the listings? How can I work my way into handling the sales (by listing) the properties taken back by banks?

I noticed that one local agency in my market gets all the homes that are taken back by the bank(s). How does this one agency get all the listings? How can I work my way into handling the sales (by listing) the properties taken back by banks?

I noticed that one local agency in my market gets all the homes that are taken back by the bank(s). How does this one agency get all the listings? How can I work my way into handling the sales (by listing) the properties taken back by banks?

I just got it from Amazon but haven't started it yet.

I would like to learn about offering leases with an option to purchase to tenants. Specifically, how to structure these agreements. How long is the lease? Should the owner require a non-refundable down-payment? How much of the "rent" goes toward the purchase price? How long to do give the tenant the opportunity to buy? Do you set the price slightly undermarket? Maybe their is an intro. source of information someone can suggest to me. Thanks.

Also, is this a profitable approach

I still don't understand how you can sell something you don't own. So, if you have an option to buy and you assign that option (or re-sell it) but for some reason you can't get ownership, that third party you were going to sell to could take legal action against you? Help.

it is two properties, two deeds, a 3 unit and a 2 unit.
For the expenses: water, insurance, maintenence, PMI, taxes.
FYI: I used a 10% vacancy on my income also.