All Forum Posts by: Jacob Ehrgott

I am currently looking at a duplex for sale in my area. It's the best numbers I've ever seen but it's a C property in a C area which I've been trying to move away from. Here's the base numbers :

Purchase price - $60,000

4 bed 1 1/2 bath each side

Gross rents $1860/month (900 each side plus $60/month for pets for one of the tenants. Currently rents for this amount. 

House and area are definitely C grade property. There is low crime in my whole community including this area and you don't feel in danger in the area but it would mostly be section 8 type tenants. Currently it's a section 8 tenant in one and 3 adult males splitting rent in the other. I've had class C properties before and didn't enjoy it a ton but at a 3% rule purchase price can I afford to pass this up? Any opinions or thought so appreciated.

Jake

@Account Closed that's funny how close our investing stories match. Where in upstate? I'm in the auburn area investing within an hour. Want to start investing in Syracuse but some of the areas have such high crime rates I've been holding out.

Hi all Jake Ehrgott here big time bigger pockets reader but I have not posted much so wanted to introduce myself and change that. I currently own 10 units (three duplexes and a 4 unit). I was up to 14 units but bought a 2 and 4 unit right next to each other in an area that was more hassle then it was worth. I've sold the 4 unit and paid off the loan and am now looking to sell the 2 unit and 1031 exchange the equity into a few 4 units in a different area.  Been at this for about five years now so I wouldn't consider myself a newbie but still lots to learn especially with book keeping and tenant management. Also a side note I've been working through the podcasts I'm on podcast 90 can anyone tell me when Josh and brandon stop trying to harmonize "quuuuick tiiiips" because I may skip ahead to that episode. Just kidding great info on those podcasts love the success stories and learning from their mistakes.

-Jake

I checked and there was no disconnect. Bill and Wayne I will try your tips tomorrow I appreciate the responses!

Just want to make sure this isn't anything super simple before paying for an electrician. I have a 4 unit house and the electric company took the meter off for one of the apartments. We eventually had to pay for an electrical inspection before they would put it back on. Now the meters back on and the electric company is saying we should be all set and we have the breakers turned back on but we are not getting any power to the apartment. Any electricians or people with some knowledge on the subject know what could be wrong? It seems to me there were no issues before so now that the meter is back on there shouldn't be issues so I feel it's probably something simple I'm missing.

Thanks,

Jake

Seems pretty solid start to me Andrew! Don't sorry about income taxes. Owning properties is actually a tax benefit not a drawback. You will probably show a loss on the property after depreciation(actually you definitely will!) and end up making money come tax time. I think your house will appreciate as it sounds like it's in an up and coming area so even if you break even / have low cash flow you should be good! Biggest part that makes me nervous is that your out of state...hope you hired a property manager with a great track record!

I would recommend buying a 4 unit house to get your foot in the door. Especially if it's your first house you can use an FHA loan for only 3.5 % down and get some cash flow experience and continue building your cash reserves to buy one of the bigger apartment complexes you want.

If they refuse to move out early your current landlord would most likely allow you to live at your current residence another two

months without signing another lease.

congratulations ! Any room for rent increases with rents only at around $500 per door?

Hey Jordan I have 14 units in the auburn area about 30 minutes away. I have looked into Syracuse before because the properties are so cheap but have not been able to find a management company for smaller numbers. Get your wife on board! FHA loan is a great one time use that you could use to get a great cash flowing 4 unit! Good luck convincing the Misses :)