All Forum Posts by: Les Crow

Hi Daniel, thanks for your comments. I've ran the numbers on a lot of multi units and the ROI is not coming close to this one. And the other buildings are $150K and higher. The value after putting our $30K into it would be about $150K. And we are looking to get the price down to $115. This is also going to be a building that we hold onto for many years. Once it's paid off, we should collect $1500 or so each month. I'm not worried about the furnaces. We are getting a home warranty. And I agree about the tree. He will not do that item. Well the tenant was there during inspection when the inspector said this fireplace has the asbestos.

Hello Everyone.  Hoping I can get some feedback on this deal.   List price was $132,900.  The seller accepted my offer of $123,000.   I'm required to put 25% down.  It's fully rented and tenants pay all utilities.

Rents per month:  $600, $650 and $675

Taxes are: $225/month and insurance is $200/month

Inspection just completed and there is a bit of work that needs done.   New roof, gutters, downspouts at $18K, chimney work $1100, large tree removed $4,000, 3 furnaces are old that will cost $2225 per unit, two water heaters need replaced at $750 each, electrical work $1500, and some asbestos remediation.   Grand total is approx $30-35K.    

All of the work doesn't need done as soon as we purchase but roof, gutter and chimney work will.    

It's time to talk to seller about the inspection.  Looking to negotiate with seller and hope to get 6% seller assist to give us $7K and then lower price to $115.  And for him to remediate the asbestos (it's in two fireplaces and a tile floor in basement).   Not sure if he will accept.   

The ROI looks good to me on this property. However, now that we have a house that has been neglected and is in need of some repair cash, is it still a good deal?

Look forward to hearing feedback!   thanks