All Forum Posts by: James Syed

Welcome to BP. 

Yes, sign up with a real estate company and they will assist you with getting your license. It usually costs about $600 for 75 hour required study course.

Welcome to BP. 

@Bodhayan Sharma

Rules of Thumbs are back of the envelope formulas which gives you an idea, but you need to do a complete analysis to get a more precise answer. 

@Joel Owens

I don't think it's a higher density area. Kind of small town.

@Joel Owens

Thank you for responding to my post. Appropriate it. 

Current cap rate in this area is about 9-10%. 

You are right about unit showings, they only showed me 2 units, I believe they were their best units. Also, it's on slab. I forgot to mentioned in my original post.

Hello BP Members, 

I am interested in purchasing this 12 unit building and would appreciate if members could assist me with purchase price. It's an off market property and Seller has passed away and his family doesn't have any p&l for me. What I have is:

12 units @650 a unit

$12,000 taxes

Lawn care, trash, water and sewer paid by the landlord

Property management in this area is 10%

Electric is paid by the tenants 

Year Built is 1950 or so

That is all what I have been given. They are asking $630,000. 

I use biggerpockets calc when I have all the numbers, but in this case, I don't. 

I would appreciate if BP members could assist with purchase price, may be some formula / rule of thumb, etc.

@adam 

@Adam Dow

Actually I was asking the over all expense ratio including property management. 

Expense ratio is your total expenses divided by total annual adjusted gross income. 

The average expense ratio for multifamily is between 40% - 60% depending upon who is paying for utilities landlord or tenants. 

What is yours? 

James 

@Andrew S.

Welcome to BP. 

I totally agree with you about Lowes's customer service. I was treated miserably at Lowe's in Belleville, IL location. I called the corporate office and they said that the store manager will be calling me within 24 hours, I never received the phone. Have long list of things, NO point of writing them down. 

I believe Home Depot customer service is better than Lowe's. 

@adam 

@Adam Dow

Welcome to BP. 

In my opinion, you should still consider property management expense as when you go to sell it, that buyer will take that into effect

What is the current expense ratio on this property? 

Hope it helps.

James 

Welcome to BP!

It appears to be that tenant is in violation of lease agreements by making unauthorized modifications. Having said that there will be some general wear and tear that you will have to bear. 

If the property is in Wyoming, please check the state landlord tenant law to see if you could take funds out of security deposits. 

Hope it helps.

@Richard Fields

Welcome to BP. 

Thank you for sharing your thoughts.

Two flooring companies that I have chosen, are coming in the next 2 weeks. I will find out more.