All Forum Posts by: Joshua Bailey

@David Thomas will be making calls Monday to start verifying everything and looking at it Tuesday

@David Thomas haven't verified any of the utilities yet. The realtor sent me over what the current owner stated he pays (which needs to be verified). Taxes 4,000, insurance 1,600, water sewer 1,500, propane 1,900 (has a gas dryer that earns 750/yr), plowing 975, lawn mowing 150 (this seems low). Tenants pay their own electric and heating cost. Although there is a monitor heater in each unit that runs off propane which the owner pays. On top of these I added $255 Capex and $130 maintenance monthly. Rent is 600, 600, 625 and 725. Asking price 99,000 down payment of 20k.

@Kyle Colby 20k down. Will triple check all of those

@Martin Neal ive calculated about 400 monthly on repairs or emergencies. Between Capex and maintenance. Assuming this will be plenty, but I've yet to look at it.

@Greg Scott its a very rural area, I'm very suspicious and will proceed as cautiously as i can. I searched and cannot find a single apartment for rent in that town. Apartments are very scarce in this area, they get scooped up quickly from what I've seen. The rent seems to be average if its a decent apartment or above average if the apartment needs work. We'll see what the walk through looks like.

I was planning on getting a heloc to pay the 20% down payment on a fourplex. They got back to me and said its easier for them to just pay my mortgage off with the heloc to obtain the cash I want. Interest rate in this case would be 2.75% vs just doing the heloc for just the 20% at 3.5%. These are not fixed rates. Opinions on getting the 20% down payment with these options or other options? My current mortgage is 98,000 and assuming the house is worth at least double that. Down payment needed of 20k. My current interest rate in 4.5%

@Jonathan R McLaughlin shows the same price the whole time.

@Dan Heuschele cashflow using 50% rule is 883

@Dan Heuschele I could post a photo of the report if it allowed. 4 units, 2550/month in rent. After all expenses which include gas,plowing,mowing,taxes,Capex etc.. it cash flows that at the end of the month. Capex of 250/month.

@Dan Heuschele whats your thoughts? Too good to be true, could they be leaving something out? If the units are in fair condition l couldn't see a reason to pass it up.