All Forum Posts by: Robert Wade

Thanks all.  I will give more detail as I go along.

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I am looking to buy a 12 unit apt building in a good area that has seven 1 bd and five 2 bd apts.   Current owner has apts at different rents and way under value for a couple.  Rents should be at $450-500 for 1 bd and $550-600 for the 2 bd.  One of the 1 bd is currently renting for $325(long term tenant).  So if I am successful in buying first thing that would happen would be to increase rents to current values.  The building is older but all brick and is well maintained.  I have been able to view 2 of the apts that were empty and they were in good shape(meaning no repairs needed).  Roof is newer.  HVAC: some have been replaced but some may need to be replaced in next few years.  I told her that I would have to view all the apts before we could get serious about negotiations.  For some reason she doesn't want to close on it till in Jan.  She hasn't told me a price but she is thinking it should be worth $575,000 because an apt building next to hers sold for $550,000.  I am thinking around $500,000 would be more in line.   I have an individual that is willing to go in with me and put up the down payment $100,000.  So here are my questions. 1. How would I go about valuing the apts seeing as 7 are 1 bd and 5 are 2 bd to make sure I am being as accurate as can be on an offer? 2. How do I set up terms with the individual to get him a good return and still make a good return myself?     Last  sch C has Insurance at $3947 and Taxes at $2754    Util expenses at $766 (coin operated laundry in building) She is showing a positive income at $24451 on last Sch C.  Thanks for your time. 

Good info on the online auction.  I am going to start going to the courthouse auctions again.  I am a little further in my investing knowledge and want to develop that avenue again.  

TY for your responses. I will look into them.

Good afternoon all,  I have a 6 unit apartment building in a small rural town that has issues with lime in the water.  It is causing problems with what seems to be just one unit in the building. Is there anything besides putting in a softner in that may eliminate lime making its way thru the pipes?

Sorry it took so long to get back to this.  Got all the financial info from the seller and decided not to pursue.  The properties were all old and were close to having some major expenses needed.  Thank you for giving me feedback.

Planning on buying both.  Ok, want to make sure on same page here.  Rent rolls is monies coming in on monthly basis.  How is market rents defined that it is different from rent roll unless it encompasses vacancies and amount of the rent for the unit.  Sorry don't mean to be stupid here, but just making sure my terminology is correct and I understand.   My wife and I have been kinda on our own doing this and learning as we go.  I have a full time job and help my wife run one of her two businesses.  I am trying to learn more about real estate and get more into it so I can quit my job before they let me go. (Pharmaceutical sales)  I've been at it for 17 years.  I will get back on here Sunday night or Monday.  I'm leaving at 4am to go out of  town till Sunday evening to fish a bass tournament at Kentucky lake.

Sorry, his financials showing rent rolls and tax info on the props, and cost of staff. He is going to give me the info in a spread sheet.

Thank you Gentlemen,  I still have not gotten the Financials yet.   There is a staff in place that does bookkeeping, renting, maintenance, etc.  The cost of that is split between him and his partner.  They both own their own houses both utilize the staff for boths properties and split the cost evenly.  He says that I wouldn't have to do anything if I didn't want to and just get the checks.  (0 figures as of yet).  That is not the type of owner my wife and I are though.  We like to be involved with our investments.