All Forum Posts by: Ian Handel

Thank you for looking over the numbers for me. I am closing on Friday and am getting a little cold feet. I just want to make sure my numbers really do work. This is my first property, and I hope to build a portfolio.

I am doing a 3.5% FHA loan. The cost of the house is 330,000 and seller is bringing 11k for closing costs.

I have three 2bd's and one 1bd. They all rent for about 1000/month.

My monthly PITI is 2800.00

I add in my snow, building electric, oil on two of the units ($1200), water/sewer ($1200) etc and I come to a yearly expenses of 37,000.

It will earn 48,000 in rent plus about 1500 in washer/dryer fees.

So I have a cash flow of 12,500. But that does not include maintenance or vacancy rate.

Do you think these numbers make sense? Would you buy this property?

It is in good condition and in a good location.

Thank you,

Ian

OK, I am with you on negotiating with a bad deal.

So will you tell me a few strategies for negotiating? How can I get the seller down a 100k? How did you get the price to 20k?

Thanks.

Hi Ned,

When you say that I need to continue negotiating, do you mean that the price would have to come down substantially?

The seller is asking 260k for the duplex. I was hoping, but doubting, I could buy it for 200k. But in reality, you are saying that I need to buy it for 150k or 175k in order for it to have reliable positive cash flow?

Thank you for your replies.

Joel, could you please tell me all of that again in more simple language. I am just learning. What is a cap?

Does the 50% rule include mortgage payment?

I will be self-managing.

Thank you for your reply.

If my cash flow is going to be so up and down, sometimes $700, sometimes only $100, and sometimes negative, then why am I even doing this?

Is there profit to be gained in this venture?

Hi, could I run these numbers by you and ask you what you think?

I am looking at a duplex in southern NH. It is in excellent condition and is a 2bd on one side and 3bd on the other, both have 2 full baths.

At the low end, rents in town are: 2bd = 1000 and 3bd = 1200.

If I purchase it for 200,000 with 40k down, the mortgage, taxes, insurance would be 1500/month.

Rent would be 2200/month (at the low end). Leaving a cash flow of 700.

This does not include maintenance, snow or grass.

Do you think these numbers hold up?
What else do I need to be considering?
Will I really have a cash flow of $700, or is that wishful thinking?

Thank you for your time, Ian

Hi Mathew, I am also in Southern NH and I am working on purchasing my first multi-family. I have a lot to learn as I enter the real estate world for the first time. Could we chat and trade knowledge and ideas?

Thanks, Ian