All Forum Posts by: David W.

I have but I have not been able to find an ROI 12% plus. This one is looking at 10%. Would be my first investment so would you mind telling me what a realistic roi is and $ per unit goal should be?

 Hoping to get $700 per unit now as my PM said they are confident about that. So instead of $1300 the $1400 margin improves numbers. Working off of the expectation of $100+ per door 

 Thanks! Well competition. First 3 properties I put offers in got bought over asking and all cash. So this one got at asking. Got it fast before agent could get the full week if offers. I'm guessing could have been sold for $110k.

If I can rent out each at $700 per unit. My property manager is confident as I just spoke then that improves my margins! 

Does anyone have any thoughts? =)

Hello! 

I just got my offer accepted on a duplex in Columbus. I wanted to see if anyone could go over my numbers to confirm they are ok. Have to do a walk through to determine if anything needs work and condition. I will definitely be requesting credits if anything needs fixing as I cannot tweak the numbers anymore. Realtor has claimed turnkey ready so I will hold her to that otherwise I'm canceling. 

Duplex 

$100,0000 purchase price

25% down = $25,000

5.99% 30 year conventional 2 points (but trying to get them to reduce it to 1 point) 

Insurance will be approx $120 (probably less like $110)

Property tax is currently $2300 a year but I put $2500 to be safe.

$30 month for landscaping but for 6 months of the year so comes to $15/mth

Lender said it will be $5316.45 (Title, lender costs $895, origination costs, title insurance $2150, appraisal costs, gov quoting costs), discount point $2271 so I will need approx $30,000 to close. 

Currently, one unit is rented out at $600 and I will immediately send a 30 day notice to inform that rent will be increasing to $650 and they will be in charge of utilities. 

Downstairs is vacant and I will try to get $700 but lets use $650 for more realistic calculation. Rentometer and my realtor have both stated rents are average $650 in the area. 

My property manager will take half month for placement of new tenant.

By the hair of my chin I am getting $200. What does everyone think?  

@Louis W. Someone said document documents t document and to add to this. Do not communicate over the phone if possible. Everything email or if they get you on the phone, follow up confirming details of conversation by email. That way you have documentation and if they are dumb you can get their threats documented. Just in case.

I only have 1 investment property so  far that was move in ready and I am renting out the bedrooms to individual roommates. That is the only model I am familiar with so far but my final goal is apartments. I figure the logical next step would be a 4 plex that would could need some love to get a "deal" and then fix it and rent it out. 

I am only familiar with the Valley - Van Nuys, Sherman Oaks, Reseda, areas and ideally would want to find something close by I could drive to and personally work on. Even areas such as Inglewood are foreign to me meaning I am not sure what the demand is for renting etc. 

What areas do you suggest that would be in my price point, in rental demand and also history of fair appreciation? Thank you!

 Why would you never buy in either?

@tyler jahnke thanks for the reminder. Yes you are right. I am caught up with the hunt of cities. I live in Los Angeles and just wish I could get something here with my $600 price point that I could rent but that is not possible. I will stick with Columbus, Oh and Memphis, TN =)

Great question and looking forward to the savvy and experienced responses. All I know is 

1. offer relocation fee and that can be from $12k to I have heard up to $70k! 

2. Force move out with major renovations (I think this needs to be major overhaul) and have to still pay relocation fee.

3. Have a family member or manager move in for at least 2 years but still have to pay relocation and this has to probably be legit as I'm guessing the neighbors will know the person you ousted and will relay info if not an actual manager or family member. 

From what I am thinking is this is a longer term play people with lots of money do. Park their money and when people move out or die (some are lifers) they can gradually get market rate. 
Morbid thought is to look at the current tenants age to give yourself a better assessment of when you can increase rent.