All Forum Posts by: Kaleb Carsten

Average in Mitchell is $375-$775 highest renting unit is $850

I looked into zoning it will cost about $250 for the variance to allow it.

Hey BP,

I need some help analysing a potential deal. I have a property in South Dakota that I'm looking to purchase.

This deal would be purchasing an existing sfr on a double lot, tearing it down and building an 8-plex with 8 garages.

Purchase price =35k

Contact estimated =$575 for tearing down and construction.

Leaving some leeway for error I was estimating $635k all in for construction of the property.

For the rental portion I am seeing 

5-1br/1ba units renting at $700

3-2br/1ba units renting at $1000

9 garages renting at $50 each

Coin op washer and dryer $90 

Total monthly income $7,040

Expenses 

Taxes =$12,500

Insurance=$2,000 (my estimation have not gotten a quote)

Property management= 10%

Vacancy =10%

I'm not sure if I missed anything but it looked like a good deal in my head. Any advice?

@Kyle Koehn that's who I'd recommend too!

@carroll Lee this is the one he was looking at.

https://www.coffeecrafters.com/product/the-artisan-3-e-roasting-bean-cooling-system/

@Joe Splitrock This property is in Mitchell SD almost in the heart on the city.  I hadn't considered the food grade inspections that is a very good point that.   I'll be letting the tenant know this afternoon that we will not be able to allow the business in the unit.

Thank You landlords for the advice!  You just confirmed what I was thinking

Hey BP, Rookie landlord question for you all. I just signed a new lease with my first tenant! However less than a month later the tenant is asking me if he can hire a electrician to install a new additional 220 outlet so that he can install a coffee bean roaster (he wants to open up his own coffee shop in a few years and is trying to build up some capital by selling his own roasted beans). Right away I'm thinking this isn't a good idea because the current electric work was done before I purchased the duplex two years ago and I don't know who the previous landlord had do it. I also don't know if it would disturb the other tenant. I let my partners know what was going on to keep them in the loop and they think I should let him do it. My partners are not landlords and never have been. So I figured I should ask the experts Should I let the tenant hire an electrician to add an additional outlet? Should I get quotes from a few licensed electricians and hire them to do it and send the tenant the bill?

I like Katie Clapper from Applause Reality. 

Welcome to BiggerPockets Daniel,

Buy and Hold Buy and Hold the great strategy to reach financial independence.