All Forum Posts by: Michael Yan

Two old properties in one deal. 1.5 hour away from where I live. Total 13 units. One block away from university. Some units are current vacant.

Total yearly rental income: 139,440 (if fully occupied)

Total expense $60,000 (including tax, insurance, estimated repair of $13,000, utilities)

PM fee 7%: $9,700

5% vacancy: $7,000

NOI: $63,000

Asking Price: $1,235,000

Owner claims the rent is below market value.

Should I pull the trigger?

A lot of people on BP talk about it. I am interested in investing with this approach. If you know someone please recommend. Thank you.

Two  historic properties in one deal. Total 13 units. Close to a well known university. Some units are current vacant.

Total yearly rental income: 139,440 (if fully occupied)

Total expense $60,000 (including tax, insurance, estimated repair of $13,000, utilities)

PM fee 7%: $9,700

5% vacancy: $7,000

NOI: $63,000

Asking Price: $1,235,000

Owner claims the rent is below market value.

Should I pull the trigger?

I am going to sign an agreement to buy two properties from the same seller. One property has six unit, the other property has seven units. When the seller signs agreement I will start due diligence. How long is the study period you usually offer? Apparently, the longer the better for me. This is my first commercial property experience, any suggestion is welcome.

Ideally close to John Hopkins area.

For those of you who have multiple units, I assume you do not do the cleaning work yourself and you always hire people to do that. How much do you spend on them? How do you find low cost and reliable workers? Do you deduct cost from security deposit?