All Forum Posts by: Eric Schrader

So I have been looking at a 6-plex for purchase.  It has 5 of the 6 units rented. Couple of questions, do i include the empty unit's rent in the GIS calculation?  How do i address the heat & water included in the rent in my calculation?

Total annual income $51.6k  (5 units rented, current state of the property)

subtract : Taxes ($5842), Heat ($4052), water ($1755), insurance (1808), Trash ($870), maint (2100), lead insp (450), vacancy (10%, $5100).  total 21,977

NOI = 29.6k I need to get the multiplier, but assuming 10% you have a value of 296,000. They are asking 439k

Am i way off base?  

Curious, where in southern PA?

BP

I am looking at purchasing a 6 unit appt bldg.  Consist of 4 2/1, and 2 3/1 units.  This bldg is in a historic district, walking distance to shops, restaurants, and the water.  The current owner has included a good number of discounts to long term tenants.  Currently, 5 of the 6 units are rented for somewhere between 800 - 900.  This monthly amt. includes water, heat, etc.  Electric is metered separate.  The rent is low based on similar sized units in the area.  Anywhere from $200 to $400/ month, this doesn't include having them pay for their own water/ gas (if that is possible). 

i am still in the discovery mode for the actual $ values for the monthly  expenses.  The price has been dropping for the past 14 months or so, down 110k.  They recently had a deal fall through.  Based on my calculations (and a bunch of assumptions) i have the property valued at around 300k.  They are asking 439k. 

so to my question, area of this appt is a strong B to B+ area, historic, 2 blocks from the water.  How does this location effect the house pricing?  Listening to all the folks on BP, I should be purchasing the property base off its current value, not its future value.  Right!!

Thanks all...

Juan Welcome. I too looked around at some other sites before I stumbled onto BP. There is a lot of great info on the site. I have touched base with a few folks in the Harford County area. I am trying to get a group together to start meeting locally. I am a newbie myself, but am getting very close to executing my first deal. Good luck and I would love to chat.

That is a good point.  Include the costs in deal analysts and prepare for the repairs some time in the future. 

So general question??  

How does this information not get picked up during a title search?

Hi everybody I'm located just over the river in York county I have been looking at Lancaster city as a potential area for investment in buy and hold properties. I am semi familiar with the area. Do you focus your investment in Lancaster city or in the county? Thanks. Eric

Great.. 

Thank you for the distinction.

So I am pushing on and hopefully will purchase my first rental property in the next few months.  My questions is around the tax implications.  For arguments sake, if I net $800/month in rent, how do I claim that $ on my taxes?  

I know I can claim the interest, etc for a second home, do i need to indicate that the second home is a rental property?  

thanks

All

So I have read numerous articles about purchasing properties with existing tenants, some positives/some negatives.  

How do you account for the potential capital repairs/replacements when the tenants are present and could potentially have to wait several years to upgrade the properties?  

Do you still include the potential rehab cost in your calculations and just prepare to do them when the lease expires?  

Thanks