All Forum Posts by: Davin Kieff
Davin Kieff has started 1 posts and replied 3 times.
Post: Renovated Duplex, First Investment
- Investor
- New Orleans, LA
- Posts 3
- Votes 4
@Dmitriy Fomichenko, thank you sir!
@Andrew Freed, as you know the market has been in an upswing for the past couple of years, with that, I'll give you the numbers that I am currently renting at (tenant has been under lease for 1.5 years) and what estimated market value is at this time.
Current analysis:
Rental Income
Unit 1 Income $1,353.00 (I charge myself this rental rate, for numbers sake)
Unit 2 Income $1,128.00
Total $2,481.00
Monthly Rental Expenses
Vacancy Rate $198.48
Repairs $124.05
Property Taxes $150.00 (property taxes are high in NOLA)
Principal & Interest $1,006.82
PMI $167.94
Home Insurance $346.61 (Insurance is also high in NOLA)
Sewerage and Water $160.00 (city, I pay both sides on shared line)
Total $2,153.90
Monthly Profit from Real Estate $327.10
Annual Cash Flow $3,925.20
Cash on Cash return 23.50%
Net Operating Income $18,022.32 (assuming paying myself)
Cap Rate 6.70%
Expected Market Rate at this Time (based on surrounding rentals and upgrades):
Unit 1 Income $1,624.00
Unit 2 Income $1,353.00
I am still a novice, but I will try for these rental prices and if it doesn't rent I will drop a bit.
Regards,
Davin
Post: Multifamily - New Orleans / Metairie
- Investor
- New Orleans, LA
- Posts 3
- Votes 4
Quote from @Barrett Bridgewater:
@Patrick Q. don't let a Flood Zone deter you. There are actually amazing deals to be found in Flood Zones. Why?
As an engineering firm we find the FEMA Flood Map is highly inaccurate at the property level. Many times we find the structures sit above the Floodplain, can be removed off the FEMA Flood Map, which eliminates any lender mandate to purchase flood.
If we able to provide you that insight before you make an offer, then you can offer at the discounted price that the current owner marked down because they think it is in a Flood Zone, we flip it out of the flood zone after closing, and now you have NOI and property value no one knew existed.
On the right flood properties, there is a lot of #floodmoney waiting to be found. These can be amazing deals, that no one else is competing for.
Hey Barrett this is a great point to make, I sent you a connection in the chance that this is something I run into in future dealings. Thanks!
Post: Renovated Duplex, First Investment
- Investor
- New Orleans, LA
- Posts 3
- Votes 4
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $268,000
Cash invested: $16,800
This was my first investment. I was very nervous about jumping into a first deal due to stretching the amount of cash I had on hand, but I could not have asked for a better investment. Everything turned out great for me and was my door out of the renting hamster wheel.
What made you interested in investing in this type of deal?
I wanted to get out of paying rent, but I did not want to fall into the cash flow trap that is brought by buying a new single family home. I wanted my first home to be a house-hacking duplex, and that is exactly what my girlfriend and I settled on.
How did you find this deal and how did you negotiate it?
I found this deal through a local realtor. We were really early on bidding the property (made offer first day on market). Traditional negotiations took place.
How did you finance this deal?
I financed this deal by taking a loan from my 401k and using an FHA loan.
How did you add value to the deal?
I was the primary investor and analyst for the investment.
What was the outcome?
Great positive cash-flowing investment!
Lessons learned? Challenges?
The inspectors do not catch everything. I now know more of what to look for when assessing a property. House Flippers typically skip many corners to save money on homes.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I worked with a local realtor and lender.
