All Forum Posts by: Jeff Ostrander

Welcome to BP!

Love the idea. Like anything, location is key. I’ve never really looked into it but would assume you need to run water and electric to each pad. Not sure what the sewage dump would entail, whether you do for each pad or a single site. 

If you can’t find anyone on here that knows the particulars, you could always drive around and look at existing ones and see what they have.  Talk to the people running it and I bet you find someone to give you the info you need. 

Good luck!

@Jaysen Medhurst Thanks for the response! I’m getting this deal off market and I believe I’m getting it for a decent amount less than what I believe I could sell it for and it’s in really good shape, granted a little dated. 1bd quads have sold for $150k and there are two 2bds in this quad. 

Water costs have gone up here lately and an experience friend says about $60 a unit for water/sewer/garbage. 

The misc expense is the lawn maintenance. Pretty small yard and the guy I currently use Is pretty reasonable. No need for snow removal. 

Do the expenses and cap-ex seem reasonable? It's an older property but well maintained. My concern is that I'm not estimating appropriately due to it being a 4-plex. Will that increase or decrease the amount I need to set aside for those two?

Thanks @Tim Herman. The garbage is included with the water bill. I have been putting 20 year loans for the calculations just for the purpose that I would like to retire in that time frame. Cashflow may be of more importance right now though to acquire more properties. 

I ran the calculation with 30 year loan and moved management to 10% and it gave me a monthly cashflow of $427. As of right now, we plan to manage it ourselves but I like to keep that expense on there in case we decide not to. 

View report

*This link comes directly from our calculators, based on information input by the member who posted.

This is my first time to purchase an off market deal that I believe is below market value. It also is currently renting at below value at $1850 a month which I could start renting at $2000 without doing any improvements. I believe with a little updating with paint I could get at least $2100. It's in an area that is being revitalized that I believe will continue to appreciate nicely.

Welcome to Bigger Pockets!

I’ve never understood how an offer is too low to counter. Any offer is better than no offer. Don’t let emotion get involved and only increase your offer if the numbers still make sense. 

@Leah Slaughter that’s not a bad idea. I guess my thought was pooling our money to get access to more and possibly bigger deals. However we don’t necessarily need to do that. 

Hello fellow investors, 

I'm fairly new to real estate investing but currently have 6 units under contract. I have made some great contacts and have really enjoyed the process so far. 

My dad is a very business savvy person who is looking to retire in the next couple of years in his early 60's. We've discussed doing some real estate deals together but I've been hesitant to lock him into long term deals that I'm looking for when he's obviously needing something that produces more in the short/mid term. 

I think it'd be really beneficial to have him on board though because he's very handy and is very skilled at working with people. What are some options for investing in real estate that would be of maximum benefit to both of us? Ideally something that would provide him income over the next 20 years of retirement yet be a good investment for me when I look to retire in 20+ years.

Thanks!

Jeff

@Russ B. That’s something I haven’t thought about. Would it necessarily be that big of a deal since you’re likely going to put another bed on top of it? 

They are two bedroom units so the cost wouldnt be too high. However if I could eliminate that cost entirely, that’d be nice. 

I’m currently in the process of building some duplexes and I’m going back and forth on whether to put carpet in the bedrooms. 

I’ll have wood look tile throughout the rest of the house. Should I just go ahead and finish the bedrooms with the tile? 

They will be B class renters so I expect a bit of turnover.