All Forum Posts by: David K.
David K. has started 34 posts and replied 137 times.
Post: Deduct improvements on second home
- Investor
- Attleboro, MA
- Posts 137
- Votes 51
This past year I bought a condo near the beach. I've updated and spent about 15k in materials. Are any of these tax deductible? All cosmetic stuff, cabinets, counters, floors, paint etc....
Thanks!
Post: What is stopping you from investing in multifamily?
- Investor
- Attleboro, MA
- Posts 137
- Votes 51
Biggest problem here is the deals don't cashflow......I have several properties but the numbers work in all of them. Lack of inventory is my biggest problem!
Post: 4 plex ---DEAL OR NO DEAL??
- Investor
- Attleboro, MA
- Posts 137
- Votes 51
I'd take it based on the info you've provided!
Post: Roof replacement soon
- Investor
- Attleboro, MA
- Posts 137
- Votes 51
10k is whereabouts quotes are coming in at in case anyone else is in the same position
Post: Mid size residential unit deal analysis
- Investor
- Attleboro, MA
- Posts 137
- Votes 51
Hey Guys-
Trying to figure out if I should make a move on this one. 12 single bed units, in a large well kept building. One heating system (owner pays). Each unit has been upgraded, electrical upgraded, roof less than 10 years old. Going thru the building I'd say its in no worse than average condition, for this demographic the units will work fine. Currently 8 of 12 units are on one year leases for $850 per month, but still represents a 33% vacancy. There is only street parking, which is partly to blame for only 8 units being full I believe. (parking always helps, but not always necessary from my experience). There's also coin op income, but I never have generated all that much with that, so I never account for it. With 200k down the debt servicing would be $3,877 monthly.
List price is 800k. Fully rented its $122,400 yearly, but with only 8 units rented yearly the rents are only $81,600.
Mortgage $46,524
Rents $81,600
Taxes $16,000
Insurance $6800
Trash $1,200
Water/sewer $8,000
Utilities $8,000
Landscape/Snow $500. (basically just shoveling walkways etc)
Looking at $87,024 in expenses before cap ex, maintenance and management. A loss for sure! Wondering where I'd need to be to make money on this........area is starting to turn around but at this price or even 10% less it still doesn't seem to work. Am I missing something?
Post: 7 unit deal analysis
- Investor
- Attleboro, MA
- Posts 137
- Votes 51
left it alone!
Post: 7 unit deal analysis
- Investor
- Attleboro, MA
- Posts 137
- Votes 51
Thank you all for your insight. I ended up passing on the deal. My expenses were a bit higher than I realized.
Post: Actual numbers vs. 50% rule
- Investor
- Attleboro, MA
- Posts 137
- Votes 51
What expenses are considered in the 50 %? What do people often leave out?
Post: 7 unit deal analysis
- Investor
- Attleboro, MA
- Posts 137
- Votes 51
| Rents | $56,760.00 | $4730 mo. | |
| Taxes | $(10,456.00) | $871.33 mo. | |
| Insurance | $(3,500.00) | $300 mo. | |
| Alarm | $(400.00) | $100 quarter | |
| Trash | $(900.00) | $75 mo. | |
| Utility | $(2,100.00) | 175 mo. | |
| Snow/landsc | $(1,800.00) | yr. cost | |
| water/sewr | $(2,500.00) | $208.33 mo. | |
| management | $(3,405.60) | 6%rents | |
| mort | $(18,804.00) | $1567 mo. | |
| maint 5% | $2,838.00 | 500 month | |
| cap ex 5% | $(2,838.00) | 5% rents | |
| vacancy 5% | $(2,838.00) | 5% rents | |
| laundry | $1,200.00 | $100 mo. | |
| $11,256.40 | yr |
Hi Bob-
really appreciate your insight. When referring to 50% expenses, what ones would equate this percentage? I'm new to commercial props, but found a manager at 6% since its one building.
Post: 7 unit deal analysis
- Investor
- Attleboro, MA
- Posts 137
- Votes 51
Yes insurance is in with my core #.