All Forum Posts by: Kelly Stevens

Thanks. I like emphatic answers!

Hello Please help

This is in a very hot market in one of the best neighborhoods in the city. 

Duplex built in 1946 needing a new roof at some point and refurbish and repaint the outside shingles - 15000$ deferred capital improvement.

Price - $420,000

Gross income would be $28800/year (no vacancy rate - really!!)  - 1200 each so $2400 per month

Operating costs would be $7652/year ( prop tax, insurance maintenance, utilities, landscape) 

down payment 84000 borrow 336000 at 3.6% - 1589 which is $19068/year

So I would net $172/month with an output of $84000.

Would you buy it?

Ok What do you guys think about this deal. I am under contract for a 7-plex near downtown SLC UT. It is 3 blocks from trax to the University. Good neighborhood. These are all one bedroom units with their own heating/ac unit and hot water heater. Off-street parking. The building is older built in roughly 1960. Units are in rough shape but they have good bones. Shared washer/dryer and individual storage units are on site.

Price - $595000

Current under-market rent income $4125/$49500

Needs new roof: $9000 and conservatively $4000 each unit to update to low average market price which is $725/unit or $60900/year.

Taxes and operating costs will run $1225/14700. Vacancy is $304.5/3654 and there is income on the washer and dryer of roughly $100/1200.  So I get a net income of $3645/43746. My mortgage would run $2976/3571 (I am putting in $50000 and refinancing a very equity rich triplex to pull out $170000). So the cash flow is only $182/$2190.

Any input?

Hello Salt Lakers,

I am looking for a recommendation for a lender that you love for a commercial loan on a 7-plex. I also need an insurance company.  Thanks in advance!

Kelly Stevens

@Reed Starkey this is what I found out. Age is not a protected group.

1.You cannot refuse to rent to someone for the following reasons:

a.Race

b.Color

c.Sex (gender)

d.Religion

e.National origin

f.Disability

g.Source of income (public assistance)

h.Familial status (children under 18 with parent, pregnancy)

i.Sex orientation

j.Gender identity.

2.You can refuse to rent to someone for any other reason or no reason at all.

3.If an applicant does not have any of the protected qualities, then they have no basis for claiming unlawful discrimination.

4.The areas of risk are when you are dealing with someone that has one of these qualities. If you refuse to rent to them, then they can claim that the refusal was made on the basis of their race or religion and was an unlawful act of discrimination. In response you will need verifiable proof that the refusal was based on something other than the race or religion. This is where applying your rental criteria comes in as a defense.

Occupancy limits. There is nothing unlawful about setting an occupancy limit – unless it is a pretext for discriminating against families. Therefore, you can limit the number of occupants in this manner:

The number of occupants in this apartment is limited to X, except in the case of a family, in which case the number of occupants are limited to two persons per room.

Ha Ha.  My husband is an attorney and I don't trust his advice.  He says I can be discriminating. His example is when you are hiring and you get a bunch of applicants and then you can pick and chose the best one.  I think you have to be consistent with strict rental criteria and stick to it. 

Can a landlord set up a minimum age requirement for an apartment. In other words, only 20 years old or older?

Thanks

I own a handful of properties that I manage and have been a landlord/investor for 20 years on a very small scale. 

I have identified a fourplex and have a partner to buy it with me but the devil is in the details. We both have 50% of the down payment.  I will be the property manager.    I have a few questions.

1 - When making the offer do I list both of our names or do I set up an LLC and make the offer with the LLC.

2 - If I set up an LLC how does the LLC borrow money.

3 - How do most people work out the deal with partner possibilities:  50/50 ownership, 40/60 ownership since I'm managing and doing the work, etc.

4 - Is there a set contract floating around out there?  

5 - Do you put proceeds into an account up to a certain amount for upkeep and then split the income - monthly, quarterly, yearly?

6 - Any other tips that I haven't considered yet are appreciated; or links to previous forums or webinars or  books.

I'm getting ready to paint one of my apartments.  Usually I just use whatever neutral color my painter has on hand.  Sometimes its not such a great color.  Do you have a favorite neutral color that you use to paint your rentals?

The thing that worries me about the Salt Lake market is the fact that according to Equimark  "There are 4,839 units currently under construction in Salt Lake County and 6,484 units scheduled to start in the next 18 months. On average approximately 1,223 units per year have been delivered to the Greater Salt Lake market over the last 10 years. The current pipeline of new construction represents more than 8 years worth of new supply that could be delivered in the next 24 to 36 months."  What do the Salt Lake Real Estate Investors think about that? I wonder about buying rental properties to hold at the current high prices with so many units going in that may possibly lower the rents in the coming years.