All Forum Posts by: James Monaghan

Just put an offer down on a pre-foreclosure. Seller needs to close within 30days. I would like to try and get a conventional mortgage however I’m not sure this is going to clear on time.

House is in relatively good condition, superficial rehab of no more than $10k and should appraise at $60k more than I have offered.

Offer has been accepted subject to 30 day closing.

How should I proceed?

1. Hard money then refi to conventional

2. Conventional

3. Any other creative ideas?

Also, is it standard to pay 6% on a residential investment property mortgage? Seems high.

Thanks!

Hi Ryan, that would be great. Thank you.

Can anyone recommend a broker in Austin specializing in Multi Family, both resale and new construction? Thanks.

Robert- no I have not. But I don't think this deal is worth it to be honest.

Dennis- agreed. I just don't think it's worth the hassle for $100.

Thanks to everyone for the feedback

I am currently reviewing a deal for a 7 unit new build Multi Family in a prime location. The lot has been cleared and plans approved. The rental numbers look solid and the area will appreciate well.

I am naturally quite bullish with investing, however I am new to property and not considered a new development before I came across this deal. 

What are the main considerations to be made when reviewing new development deals? 

Is this biting off more than you can chew as a newbie?!

Hi Faraad /Ryan,

Thanks for the message.

Units were off Westheimer near the Galleria. I based this figure on info provided by my broker. I agree it does seem high, but this was the info provided. 

Bottom line I don't think this is the correct route for me to go down. High HOA fees are killing the deal and it was confirmed they just include cable no other utilities. The facilities are not that great either. It's a lower end B grade building in my book.

Thanks for everyone's input, this has been really helpful.

I have been told to allow 5% for closing costs- is this about right?

They are individual condo's within an apartment block. Are the costs higher doing it this way?

Hi Michaela / Jaysen,

Thanks for your messages.

I'm a newbie so my numbers may not be totally accurate. 

I'm based in Houston and looking at buying 4 separate MF units in the same block.

Units are being sold for $55k each / 700sqft 1bd/1ba

The HOA Dues and property taxes seem to be killing the deal.

Using the average rental income of $1000/month;

-Mortgage: $171.88/month

-HOA dues are $238/month

-Property taxes $126/month

-Insurance: $100/month

-Maintenance (15% estimate): $150/month

These expenses amount to $785.88 and before factoring closing costs, light rehab, vacancy/contingency.

On face value I thought this would have been a great deal- $55k units and $1k rental income per month. 

Is there such a thing as average profit per unit for Multi Family? 

I see some variations, however the median range seems to be around $100 per unit per month.