All Forum Posts by: Manco Snead

I always question those internet ratings. They may be "hot" markets, but does that mean the property will cash flow? Often what I see is that the rents are indeed fairly high but so is the purchase price.

I've had this same issue several times and never found a work around involving banks. The first time I had all the down payment cash but couldn't get a loan because of my erratic but well paying job. I worked around this by getting my dad to cosign for a loan. Much later I just did what I had to do (school in my case) to get the full time job so the bank would give me loans.

Family can be a big help but you need to demonstrate up front that you're not going to screw it up. They're family and they want to help, but they don't want to lose their money.

@Bjorn Ahlblad  Much thanks, will take that into consideration.

Greetings,

My property manager here in WA state did not put in the lease the requirements for notice to vacate/ # of days notice tenant must give before vacating. Current tenant wants to move at end of month, so is giving about 12 days notice.

1. If no description of this in lease what is required of the tenant? Nothing? Follow WA state law for tenant vacate notice?

2. If the tenant is giving notice on the 19th of this month and his lease ends the last day of this month ( unsure if this is the case or not) how does this effect notice to vacate given above?

Much thanks.

@ Bjorn Ahlblad  Thanks for your feedback. Given the numbers I stated above (I know I need verified #s) I see cash flow based on below, but I would definitely like to know how you don't see any. 

Much thanks.  

Total month rent :       $8000

-PITI: $4900

          - Prop. Manage: $800  

          - Vacancy:         $600

- Repair/Capex:$600

          =                      $1100/month                                       

Greetings good people,

I am hoping to get some feedback from those more experienced than I on this deal. I own one property (duplex) and am new to commercial properties. I only have rough #s, but believe it would look like the following.

Property in question:

8 unit multifamily (Units are 2 bed/1 bath, built in 1992)

Asking price : $1,150,000

Annual taxes: $6,860

Mortgage estimate : $4900/month

Rents: unsure but likely approx. $1000/unit

After PITI, prop. management/vacancy/ expense savings I am seeing cash flow of $1200/month.

Financing:

Down payment: 25% via cash out refi my duplex (it has appreciated alot)

Remainder will be financed.

The conundrum:

Duplex currently cashflows at $800 (after prop. management, vacancy, save for expenses, etc). If I refi the cash flow will likely change to $0. BUT, I would now also have an 8-plex.

Duplex purchase price: $265K

Duplex current market value : possibly $700k

Also, I am unsure on the cash on cash return for the 8 plex, which I believe would be around 5%. I think this is low, but each unit would cashflow at $150/month which seems reasonable. For the area I am in (western Washington) the price on this property is pretty good. An additional thought is to sell the duplex, but I am reluctant as it is in an excellent town in an excellent neighborhood.

Much thanks to anyone willing to give feedback, ask me questions etc.

@Scott M.  Much thanks for the feedback. I'll incorporate that into my approach to the roofing conundrum. As of now I'm leaning towards just getting opinions/estimates from 3 different roofers and weeding out some common thread truth from the average of the 3.

@Robert Belz

Much thanks for the experience based advice; will be incorporating it into my plan.

Jesse

Greetings,

My rental duplex may be due for a new roof (asphalt shingles),but I’m wondering the best way to get an honest opinion on this. Roofers have their obvious interest so I’m thinking of hiring an inspector to just look at the roof.

Any thoughts?

Much thanks.

@Peter Mckernan That’s great, thanks