All Forum Posts by: Account Closed

Thanks for all the replies.

Tenants pay all utilities except heat and water/sewer. This was built in 1945 as a 4 unit multi property for a corporation that was in town. Yes, Its a poor town, but most towns around me are poor. :(  

Thanks again fellow BPers

Greg,

Thanks for replying.

I have been torn on whether or not to separate into 4 different heating units (costly to say the least). i can't find any flow meters that would work like I want on a fuel oil system. nat gas is not an option. This is a section 8 compliant home so I don't really was mess with the rents too much, at least til I get feel for landlording and what kind of tenants are currently there. Plus, $650, $650, $620, $620 are pretty high rents around here. the majority are around $500/mo.

The building has a 7 yr old roof, newer furnace and hot water heater, insulated windows. I'm sure there is maintenance needed and more but I think the price sounds pretty reasonable. 

I do realize that my vacancy % is too high. That is kind of how I like it. I figure if I have reserves planned out like that and a potential still passes the $100/door mark (I like that as rule) then it is definitely worth a look. 

I live in a small "po dunk" town and most folks don't have much money. Most of the rentals around me include heat, not sure why tho. 

Again, Thanks for replying.

Greetings fellow BPers,

Wondering if I could get some insight on analysis of a potential of being my first investment property? 

4plex

List $89,900 (Following figures are based of purchase price of $82,500 cash deal)

Income $2540

Vacancy reserves 20% (that's what most banks around here use)

Capex 10%

maintenance 5%

No PM expense/reserve as I would manage myself.

Taxes $4000/yr 

Insurance $100/mo

Flood Insurance $100/mo (on the very edge of flood zone)

Garbage $100/mo

Heat allowance of $300/mo (the remainder of the bill divided equally between the 4 units until I can separate heating by units)

Water $135/mo

Cash Flow $582/mo

I don't plan to touch any income until I find another property and then would probably refi cash out for down payment on the next property.

Any insight would great. 

Thanks in advance.

Thanks for the replies. 

This is a 4plex that was built in 1945. It was designed with one meter for heat and one meter for water/sewer. I'm guessing this was because those prices were very reasonable back then? It still has fuses as opposed to circuit breakers as well (I would try those Edison plugs with built in circuit breakers) 

I am thinking if I do become owner, I would probably give a heat cost allowance each month of say $300 and divide the remainder among the 4 units? 

The asking price is $89,900. Rents = $2540. This would be a cash purchase so as to limit closing costs. Taxes = $3800/yr. Water/sewer $400/qrtr, Even with reserving 20% for vacancy (that's what banks around here use), 10% for capex,  5% for maintenance, would manage myself so I didn't include PM reserve/expense, $100/garbage, $100/month insurance. This place still cash flows around $580/month (that includes an allowance of $300/month for heat . (all figures based on cash purchase price of $82500). Unless I did something wrong?  

Thoughts?

Greetings, 

I have yet to purchase my 1st income property but have been reading and watching a lot on BP (great stuff btw). 

I am wondering if a landlord of a 3500sq/ft, 4unit, section 8 compliant property can program the furnace thermostat to a specific temp (say, 70 degrees) and tenants wouldn't be able to run the bill up?

Greetings all BPers. 

I am a total newbie who has been reading and watching tons of information here on BP (in the past numerous weeks) which all have been excellent. However,  I have noticed quite a few of prospective rentals for sale locally to me appear to provide heat for their tenants (which I really don't want to do). I am wondering if anybody has ever installed a secondary source for heat so not to pay high monthly fuel bills? I burn coal in my personal residence and is the best bang for buck as far as heat and btu's are concerned. My question is... Is it allowed to have an auxiliary heating system in a rental property?

Jason

Chris, 

Thank you very much. I have yet to purchase my first income property but I will be sure to inquire about all those things now and forever. I am getting most of my ducks in a row before I pull the trigger, and, how to choose a management group is something I have never even thought about until recently. Thank you again.

Jason 

Greetings, 

What are some good pertinent/relevant questions to ask potential property management firms?

Obaid,

This was an online listing but is now under contingency. Guess I should of acted quicker.

Mitch,

All of those are great points to really take a look at (and will begin to examine them when I find my next prospect). Is a capital expenditure deduction of 30% a fair estimation of any "extra" expenses I might miss in my calculations? I deduct that on top of know expenses (taxes, ins, and other known monthly expenses).