All Forum Posts by: Account Closed

UPDATE: My agent suggests I make an offer of $76,600!?

current owner paid $225,000 back in 2005. there is another 6plex next door, also assessed at $225k.

For the below reasons I was not originally going to make an offer, BUT for a price under $100k I think it looks great. I also think she is crazy thinking we can get it for that cheap but hey why not throw the seller atleast some type of offer instead of nothing right? And its her suggested price so its not like im wasting her time, it shows shes willing to put in low offers/work hard to eventually land a deal?

I told my agent I like her suggestion and to go ahead and write up the offer.

after looking in the neighboring unit and driving the area a few more times, im thinking its closer to a C or D property. Property manager gave me and my agent a tour of this property, 1 unit needs major repair, others are in fair to average condition. . looks like the owner and the property manager mutually dont care much about the property and obviously dont inspect units each year. 

what do you guys think?

i dont think that's an incentive. maybe $30 or $40/month. It needs to be sizable, equivalent to another monthly "bill" that they have to pay. otherwise its too small for tenants to actually care about. I have a tenant that pays $35 late fee every  month, nearly 8 months in a row and often only a day or two after the date the fee kicks in. Major reason is because $35 isnt a big enough reason for them to cough over 830 bucks two days earlier. A tenant that pays on time will pay on time regardless of a $10 discount. A tenant that cant pay ontime... 10 or 20 bucks is the last of their worries. if going to try and actually entice the slow payers to pay ontime then there needs to be a real monetary amount, in my experience not even $35 is enough. 

Please stop littering our cities with these trashy slimy signs!!!!

 I also invest in real estate and dont need to make my city look trashy to do so. have some respect for the city you live in! you can get the same effect legally and in a non trashy way as well. makes the rest of us look bad.... so you can understand where all the negativity is coming from

Ive been in Colorado for the last few days. I can understand why your moving, this has become one of my " go to" states for vacationing. Tempting place to want to move to, really enjoy Fort Collins 

@Sean Ploskina my thoughts as well. All units are separately metered tenants pay their own utilities. So landlord only pays for common area utilities, as you see in the picture theirs not much to the common area other then hallways/stairs. 

@Aaron Junck your exactly right, with taxes and financing your cash flow negative. the lawncare i think is inflated, what you see in the pic is all there is, vitually no backyard, in my area it shouldnt be more then $40-$50/month.  Im still waiting on the property management company to get back to me with a time for a tour, im guessing they may be part of the reason these expenses are so high if they control maintenance. 

$100/door is also my personal minimum. So with the assumption that I can get expenses down to 50% including taxes, and occupancy up to 90%, I would be cashflowing around $100/door at an offer price of $165,000

@JT Spangler that is what I was kind of thinking, rents are probably already where they need to be but if I can get occupancy up to 90% and lower expenses down closer to 50% of income then its starting to look a bit better. Still surprises me the expenses are so high on a simple 6plex like this

 they provided me their rent rolls. Rents per month total right around 3,300/month. 

so 100% occupancy would be $39,600. therefore it looks like they must be getting 70% occupancy rate? they didnt state their occupancy rate in anything. 

I think the rents are pretty much at the market rate but I do think I could get the occupancy up to 10% or less, also I think their expenses are just high. 

heres a pic, 6 units in one single brick building, no garages, one spot per unit out front. little yard.

attached is what I was given. they seem high to me, wouldnt the owner "want" to show me low expenses? these dont even include taxes which are $4,800/year. 

this is a 6-plex, seller is asking $210,000. it is located in a C class area. 

thoughts on expenses?

this is why i dont recommend using buyers agents. do your own negotiating, an extra agent just makes room for laziness and confusion from having them to regurgitate what the sellers agent says. title/escrow company does all the actual work, buyers agent is just fluff for someone who doesn't understand how to buy real estate such as a first time buyer.