All Forum Posts by: Brandon Rodriguez

@Craig Bellot

This

Here is the 10% for the three categories you mentioned.  ouch. 

Hey guys really sorry for my delay, I was waiting on getting more info.  Yes rents can be moved up, and during escrow rent was raised on 2 units 100 each.

2 units @ 1200

2 units @ 1100

Here's an update on purchase price. I am moving forward since I am pressed for time in this 1031. Gross NOI is $4600. Once the property is completely updated each unit can rent for 1300-1500. The monthly mortgage payment is 2792.

I am purchasing the property 35k above appraisal, leaving about another 45k in complete renovations.  Only about half of the reno work will need to be done once property is closed, mainly rot in outside stairs and plumbing. 

What do you guys think of these figures?  Please let me know if you need any other info.

here is the report. This includes about 45k in rehab work

Hi @Alpesh Parmar .  Sorry total cash flow is 1400.  Cash on cash return comes back at 7.07%

Hey BP! I don’t how how rare this situation is but I need some input. Looking to purchase a 4 unit and the units rent very well. $1100-1200/month. Problem is that the appraisal came in way less than offer and seller will only budge to about 40k above appraisal. After all expenses I would net about $700/mo. Here’s the other wrench. The property needs a lot of work, from full electrical to plumbing to new windows/frames, and wood stairs that lead to second story, just to name a few. Would you, or have you overpaid for a distressed property if the cash flow was this good in its current state? Any input is always appreciated. Thanks!!

Right move, however refinancing the fully paid may help, especially in the multi-family realm

Hey BP community!

Currently looking at a 4-Unit building in southern California. This property has a NOI of roughly $450/month as is. I am in contract for 20k below asking and currently waiting on appraisal (which i know is a huge deciding factor). The building was built in 1920 and after first inspection, needs nearly everything updated. To condense the list to the important ones:

New electrical wiring/Panel

New Plumbing

Wooden window frames are falling apart (termite damage)

Wooden steps to back yard and 2nd floor units need to be replaced (termite damage)

Flat roof needs maintenance (leaks)

My Question is, where does an investor typically draw the line and say that there's too many repairs that need to be made?  What numbers am I missing in regards to cash on cash return?  Any help is always greatly appreciated.

Yes you can watch them later that day, if your a pro member you can always access archived webinars.

Welcome! Good to see local investors finding deals

Exactly what Jerry said. Best case scenario would be that your 4 plex has good cash flow. in years time you when accumulate enough for another down payment for a new place, you can either rent out the entire 4 plex, and buy a SF home, or house hack once again. Either way, after that year, banks will be able to truest you since you'll be able to show you successfully managed a rental property.