All Forum Posts by: Jay Lalik

A bit off topic, but 155k for 9 doors in CT?

Is Utah just insane now? I can't find a duplex for that.

I am going to look at some duplexes and triplexes in the area and see if the numbers work.  Who knows, they may be really thin as well. 

I really wanted more doors, but I may not be in a position for that right now.  I really need to be in the position to put money down on a 16+ door deal, Cardone style.

Bill, the large unit is a 4 Bed, the others are 2 bed.

I didn't think about the multi units in a Herd.  It is a goal of mine to own an entire complex like the one in this post but I see your point if I am only owning 1 of 25 buildings.

Thanks for your comments guys.

The 1% rule is really good to go off of.  I see that this property is either priced way too high or the rents are just way too low.

The HOA is $10,000 a year, almost a quarter of what the fully rented gross income is.

I am looking to owner-occupy a 4 plex with a VA loan. I will get out of it in 12 months and get another.

That is the theory anyway.  I am having a hell of a time finding one that is a reasonable price or one that is not in a warzone.

This property in Murray is something I would be happy to live in and proud to own when I move out and rent all 4 units.

The condition seems to be great.  The property is among 20 plus other 4 plex buildings, kind of like a town house community.

The problem is that the price is high and there is a really fat HOA fee for the building that I can't get out of, making the numbers tight. I am not sure if it is worth it.

NUMBERS

Cost - $575,000  (may not get much lower than that, maybe something off the top as I am an agent representing myself.)

HOA - $836 / mo ($209 per unit.)

Rents - $4095 / mo fully occupied  - ($1300, $975, $950, $870)

Total Expenses - $22506 (HOA, HOA assessment, PM, Insurance, Tax - all given to me by the owner)

Total Profit - $28,174 ($50,680 in rents - expenses above)

CAP RATE = $28,174 / $575,000 = 4.9%

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My VA loan is $0 Down

I will be close to $3000 a month for the loan + insurance

I will be $900 or $10000 out of pocket while LIVING THERE on one of the two chaper units - which is about the same as I pay now.

I will be at NO cash flow when I move out, but the rents will be paid down.

This property WOULD net about $750 a month IF I had money to put 30% down. = $9000 yr.  which would only be a 5% return on $174,000.

The HOA really screws this deal, doesn't it?

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I am not going to do this deal unless he comes down about $75,000.

What would you suggest I be looking for?  What do you successful investors look for in deals?

I am trying to START my investment portfolio.  I will NOT do a deal just because I WANT one.  I will only do one if the numbers make sense.

Thanks guys.

Jay

That sucks.  Can't have nice things.

I agree it is risky.

The only way something becomes a slum is by: tenants, property managers, owners, or a combo of the 3.

I don't discount the tenant's responsibility at all. 

Thanks Ryan.  I appreciate it.

I think the acceptable property is about 60-80K too high.

Has anyone purchased multi family properties in a group that was in a total slum area?

I was shopping 4-plexes I found on the MLS and I came across a ridiculous place in my area (in West Valley, Utah) I need to do some research, but this area had 7 or 8 brick 4 plexes (I didn't stick around too long as I left my 9mm at home).

I was thinking about contacting the local mayor to see if there is a way to "force" a sale or "force" changes in property management in areas that are simply unacceptable and in violation of city codes.  I am looking into tax breaks if I do this as the area would be revitalized and other property values adjacent to the respective property would be raised.

While I understand property rights and ownership, I detest slumlords and therefore I would not feel bad having the government help me or someone else obtain the run down properties.

Thoughts?

It is a shot in the dark but... does anyone here have or know about a decent 4 plex in the valley that is for sale.

I am having a difficult time finding a 4 plex to owner-occupy. I exhausted all ACTIVE properties from the MLS as of yesterday. as in the properties I looked at were rough, one was in a legitimate slum in WV that should be taken over by the city.

I found a decent one at $650k on the east side but the current rents are so low for that price.

I want to be close to breaking even with the loan using the 3 rented units to cover it all (It is a VA loan.)

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