All Forum Posts by: Rae Bryant

@Immanuel Sibero While I do believe these properties will appreciate over time thank you for reminding me that is not enough and there are passive options out there for similar returns.  I have not researched syndicated multifamily corps but will look into them.  Thank you for taking the time to help me out! 

@Sean Mcevoy  Thank you for your advice about having an agent.  I realize that is a critical component in making wise investments and am going to focus on that for now! 

Thank you for your thoughts and questions.  

Yes I ran comps for the past year and asking price is about $7.00 more per SqFt.  Also ran the income valuation using the yearly income x 11 formula which equals asking price.  Is that the correct formula? 

@Immanuel Siberoundefined

Nicholas 

No I am not currently working with an agent.  Thank you for keeping my focus on the $'s only! 

Hello BP community - this is my first forum post :) After several sleepless nights I decided that it was time to turn to the professionals for guidance!

My initial REI plan was to BRRR however I came across an MLS listing for (2) turn-key Triplexes that are on adjacent lots. Met with the owner/agent and now I am second guessing. I cannot decipher if these $'s really work or I just want them to.....

PROS:  Owner has property managed the units himself for almost 30 years and stated he will 'be around' after the sell, knowing I am a newbie.  Seems to be fully transparent with history about units and tenants.  

Location - 15 Minutes from Downtown (state capital) - County has more than 1 million residents - County growth +21% last 10 years - 36% of households rent their homes.

Owner has offered to sell me (1) Triplex this year and the other next year. - Gives me more time to find 25% down-payment and helps him on taxes (per his accountant). Each Triplex down-payment = 1/3 of my cash on hand.

Units are 2 bed/1.5 baths with their own utilities.

CONS: Owner has valued tenant longevity over keeping units at market rates so increase of between 3 - 8% needed to match current/desirable rates. Known CAPEX = $12,000 w/i next 3 years for (2) new HVAC units.

Numbers below do NOT include Property Management Fee. Units are 30 miles away from my home.

FACTS: Current rents /offer $ = $145 Monthly Cash flow per door / Proforma Cap Rate 6.16% / Cash on Cash ROI 5.33% / Purchase Cap Rate 6.16% / 50% RULE -$211.80 Monthly Cash Flow

Market Rates (conservative)/offer $ = $167 Monthly Cash flow per door / Proforma Cap Rate 6.36% / Cash on Cash ROI 6.16% / Purchase Cap Rate 6.36% / 50% RULE -$126.80 Monthly Cash Flow
Thank you for your honest evaluation and expert insight on this - MUCH APPRECIATED!