All Forum Posts by: Maurice B.

------ pest control is every quarter but I like to average it out on a monthly basis

 thanks for the advice. It may be time to pass on this one..

 I would have to raise rents slowly. They are all under the market. From $50-$100 under

To get to them $700 it would be a 3-6% increase of rent per door.

 Sorry. The tenants pay for electric. The owner pays water.

All of thst is accounted in the "other expenses portion" $339/month

 I can in move them to $700/month per room after their lease is up (average 3%) and then the cash flow would be $519/month

Good evening,

I have been listening to podcast, reading, and analysis deals and have had some up and downs. I finally felt confident to put offers on deals. I started with a Triplex then Quadplex but on both deals the owner and myself could not agree on terms.

Finally I found a 5-plex (5- 1/1) and an owner verbally agreed on a price. I am in the  mist of getting this property to be finance. I want to go through my numbers even know if this property is worth my first deal. Thanks for the help in advance!!

Agreed Price: $286,700

Down payment: 25%

Loan rate (5.5 or 6%) will know soon

Monthly Rent- $3,334

Max Property tax: $4,750

Insurance: $2,633 (from owner expense report)

Vac- 5% / Main- 5% / CapEx- 5% / Property Management 8%

Other Expense ( Waste Managment, lawn care, pest control, $339/month)

Which leaves me with $340/month cash flow @ 5.77% cash on cash ROI

Is this even worth it as my first property?

Her hourse

Mortgage: 160k left

Value: 235k (based on lowest evaluation I can find) Highest: 250k

Market rent: $1,450 (worse case)

You are correct cash flow would not be high more so $100/month after expenses

Eventually we would attempt to use this house in a 1031 exchange to get a MFH

Thanks for the post Jack. My first goal is to get enough units/cash flow so my fiancee can eventually leave her job after that is done we will see where it takes us. I am liking #1 because it won't be a dramatic shift for her going from a 3/2 SFH for 4 years to a smaller 2/2 MFH, Dream house would be more so in the 450-500k range.

For #2- I do have a decent paying job that if when lived together we can save to get at least in a year 10-15% of a down payment for most SFH in our area. Maybe 20% if she gets good commission checks that year. MFH would be so in the 10% range in the areas I would like to invest in.

My fiance and I are getting married next year. She currently has a house and I live in my apartment. I currently have enough money for a down payment for a home but I am debating on a few things to do with this money. I am 30 and she is 32. We both have stable jobs and would be able relocate more than a 30-45 drive where we currently live.

Scenario #1

-I buy a house with a FHA loan prior to marriage. My fiance moves in with me after marriage and we rent her house (nice family neighbor. We currently have renters next door). We stay there for 2 years and then buy our more stable house to live and start off with 2 SFH for investing. (Hoping to get a mult family instead with the FHA loan)

Scenario #2

- My Fiance and I move into a nice apartment, she rents her current home and I use my down payment money and buy another home to rent. We proceed to live in the apartment and buy another property in a year. Then save up for 2 more years to buy a down payment on our dream home.

Scenario #3

-I move in with my Fiance after marriage. We combine my current down payment money and save up more for our dream home for 1-1.5 years. We then rent the current home and save up to buy another rental property.

I wouldn't desire to have a truly stable home until future children reach Pre-K. (5 years from now at least)

My fiancee is also looking to get her real estate license @Kim Meredith Hampton does IFREC offer weekend classes?