All Forum Posts by: Mark Graham II

I forgot to tag you @Patrick Liska

I'd be willing to share haha. 

$300k asking

6 unit complex. 

Rents are: $550, $525. $400, $450, $525, $400

All units are 2/1's, with two (if I remember right) covered parking spots behind each unit.

Sits on 2 separate lots (2 triplexes, 1 per lot)

2014 rent gross was $18,575

2014 Expenses totaled $14,098

Net cash-flow was $4476

2015 up to Sept. 1 gross rent was $22,477 (guessing they changed rent on at least one unit)

2015 Expenses total $8839

Net cash-flow so far $13,616

2014 Expenses seem high. I have a breakdown of whats what, and I see a lot of money spent strangely. They have over a thousand dollars in fuel, and travel.

2014 taxes: $1895

2015 taxes: $1900

*Now, rent for the area on a 2/1 should be closer to the $550-$600 mark, depending on what the inside looks like. I want to schedule a time next week to go look at the property, and see what kind of shape its in. All but one furnace is new, and a new roof in the last two years on both buildings.

@Dan Mackin I could make that work. Just let me know when it's a for sure deal!

I was just wondering if there was anything planned for after Christmas or around the new year? I found the date for the one in December the same night it took place, and there was no way I would have made it. I would love to attend one though.... Anyone want to put something together?

We are looking to pick up a duplex or triplex sometime in the near future and do exactly that. However I have read everything in this thread, and a lot of others, that has made me decide I will be doing very VERY thorough background checks. 

After sleeping on it, I decided it's a good idea to have someone else double check my thoughts. I have a friend who's mom is an investor, and she offered to look at the numbers with me. So fingers crossed I can make something work!

I guess my two biggest fears are that I want it too bad, and I'm worried I'll justify making it happen, or I'll sit here and nit-pick it to death, and someone else will walk away with it

I'm not exactly in a position to do a Commercial loan at the moment, otherwise I would. And yes, it will be a medium term buy and hold. 4-7 years, with equity building and increasing cash flow. According to the paper work I have, it cash flowed approx 13.6k in the first there quarters of the year, which isn't bad, I don't think. Approx $251.85 per door. Less last year, but there are some added expenses that caused a smaller cash-flow 

Well, they were built in the early 1900's, and about half the furnaces have been replaced, and a new roof on both. Not sure about the hot water heaters or electrical. With them only being offered as a pair I'm just not sure how to proceed. I can't really run solid numbers (other than taxes and the given) without actually seeing the property. Also, with looking at either seller finance, or a MLO, I'm not sure how negotiable they will be price wise, thats the reason for the question. I think they are over priced by probably 50-75k, but without seeing them I couldn't honestly say. There is a fourplex in the area listed for the same price, and a duplex for about 1/3. The thing I have going for me is that the owners inherited it, and it's owned outright. They don't live here, so coming to maintain is a pain, but they like the income. Thats why I think it could be a workable deal. 

Im looking at a pair of triplexes, one sitting on one lot. The other on the other lot. My question is this: would I be better off treating the deal as separate triplexes? Or as a 6 unit commercial? The owner has stated they don't wish to sell one without the other, and this is something I'm considering approaching the seller with a MLO. Trying to value as commercial has proven to be challenging. There however is value left, all but one of the units rent for a good amount below market rental price. Any advice would be awesome. From what I've looked at the numbers look good, just trying to decide how and if to do the deal