All Forum Posts by: Greg Zessin

@Troy Fisher

I understand what you are saying. but a $100 per unit isn't enough even after clearing all expenses. And if you run the numbers, you can't make just a $100 a month on a property with the 1% rule. If you do use the 1% rule and are only making $100 per month, you are probably need to raise the rent significantly. Same goes for the 50% rule.

@Cain Kiser @Ryan Scritchlow

I'm in Springfield. There is only a Landlord Association here. There is a Real Estate Investors Association in Collinsville. I attend the the landlord association. I went to the Collinsville REIA in November. I would like to get together with some local investors too. If your close, lets get together.

I would DEFINITELY get an education before taking on a goal that aggressive of 100 units in 5 years. I also would reconsider the numbers. $100 a month is only $1200 per unit per year. One roof would set you back years, or one furnace would cost you one year. Even if the unit was all fixed up and didn't need repairs for years (unlikely), you still have vacancy. If just open one month and a mortgage (with taxes and insurance) is 500, now your down to only $700 a year (not including turn over costs). I would rather you set a goal of 50 doors that make a minimum $250 a unit per month. There are plenty of these deals out there. In my experience, $350-400 would be not be hard to hit. PLUS 50 units is less time consuming than 100 units. PLUS less down payments and rehab, so that's less money out of your pocket. PLUS less rehab also means you can move onto the next deal quicker, resulting in reaching the financial goal sooner.

I inherited a section 8 tenant where the lease was including utilities. It does happen, but it doesn't have to be permanent. Make sure to talk to the section 8 coordinator and get all the details on filing a change request. They are very specific in my area.

Also, $658 sounds cheap for a 3/2. what it the neighborhood like? I have a section 8 that is a descent 1100 sf 3/1 in a so so neighborhood. It rents for 775 plus utilities. Could you get more rent too? 3/2's are the most popular around here and get the highest rents.

None of this makes it a bad deal. But there could be potential to make it an incredible deal. Check into a little more.

If you bring them the room dimensions, and the window and door measurements, they will do it for free in store. Menard's does it too. I would imagine Home Depot can as well.

At the surface, sounds like a deal. Whats the beds, baths, and SF of both properties. And what was the condition of the other home? And what's the reason for the deep discount?

4-plex..... Are the utilities separated? A lot of them still have water as one bill. Also, what about lawn maintenance, snow removal, common area utilities? Is that asking price? and like JT asked, what is the break down of the mortgage, taxes, and insurance. And at what value is the tax assement? if the taxes are based on a $150,000 assessment, you taxes will be higher. And here in Illinois, If it is not a owner occupied, the taxes are also higher. So taxes may go up just from it switching to a non-owner occupied. So, yeah, get more info. In my area, most multi-units run about 32,000-45,000 per unit. So, it would be high in my area. But rents in my area run lower too.

Faxed app is legal. If it makes you feel better, you can ask them to mail the original. but go ahead and process the app.

You're doing fine! If you were really messing up, you'd have no applicants at all. The fact you have so many applicants this time of year is great. Even if the price is low, you are still in a good place. Now, I would ask the second couple to email her application to you. But let them know in the meantime, you are going to move on the the next application. Don't even look at his yet. Because if she doesn't get you an application, it is a waist of your time to go through his. Move on to the next applicant who has submitted everything you requested. If they are qualified, offer it to them. Let them know that you will continue to market the home, show the home, and take applications until you have the security deposit and the lease signed. Depending on the feeling I get from the person, I may go ahead and continue processing applications until I find another qualified applicant. For example, if you offer the applicant the home and they say, "Oh awesome, the sounds great. Let me check with my spouse to see if they still like it." Then I check more applications just in case, because I don't feel the commitment from them. However, if they respond with "Oh awesome, Can we meet Saturday at 10 to sign the lease?" I usually stop there with processing applications. And yes, all my applicants always say "Oh, awesome!" - just kidding. Again, don't delay processing the applications. Just as you don't like waiting to hear from the bank if you got the loan, your tenant's will be even less patient. Get through some apps and offer someone that house right away!

try commercialsearch.com

Also, your local Realtor Association may have one. The one in my area is www.seebuildings.com for commercial/multi's and www.seehouses.com for smaller multi's and typical residential.