All Forum Posts by: Rob Gerv

Drew,

I am afraid there is not enough information to truly evaluate your deal. Please find out comps, rents, mortgage, expected expenses, your income and reserves after purchase, etc. etc. prior to buying. Look at the structural elements of the property. Interiors and cosmetics tend to be less expensive and you may be able to do these yourself to save the bottom line. Look at about 30 properties and ask youself if this is truly the 'deal' after comparison. BP has a plethora of information to help you evaluate your choices.

I would schedule the 'appraisal walk', 'maintenance walk', and 'quarterly walk' through the apartments with a written notice to the tenants. This may help them clean up. In the mean time if they are not paying, give them the 3 day notice and find an eviction lawyer. Just think about the consequences of your place being boarded up or losing the total rent for a few months.. I've had better days and I hope you do too. If the best tenants in town are drug dealers and bums, it will still be best to set your standard to weed out the bottom feeders. Check out the tenant screening postings and links in BP. In the mean time I would think about future tenants and your screening process and think about what you can do in the future. The previous owner obviously was relaxed on screening.

Below are my numbers for a property. Figured 2 months for fix up of all units including 2 units ready in 1 month max., and another 2 ready in 2 months (conservative). This will be an owner occupied for 1 year while collecting rent of 400 for one room in the owner apartment (this renter is available if I land the property in one month).

Purchase price- 175000 (203k loan amount not included but shown below)
Gross Rent- avg 2000 first year (2800- yr 2 after owner occupant moves)
Vacancy- (10%)
Net rent- 1800 and 2520 (conservative- similar property within blocks rents for 1150/mo)
Expenses- 203k loan for 20k? What is your take on an expense fund and the items to be included?
Mgmnt fee- (200) , (280)
Maintenance Reserve- (200), (280)
Utilities- 0
Taxes- (138)
Insurance- (125)
Other Expenses- 21

There must be something I'm missing here. Please help!

Gervy

Harrison-
Thanks for the positive vibe. I'm in the middle of placing my first offer and should know by the end of this coming week. It's a foreclosed 4-plex. It's a bold move to some.

Gervy

Hey all! New to the site and real estate investing. Currently residing in Colorado looking to buy du's and 4-plexes in the area. I am looking for the wealth of information you all have with beginning and maintaining the real estate investing journey. Please message if you may be of assistance. Good luck to each of you!!

Gervy