All Forum Posts by: Henry R.

@Wendell De Guzman You are really killing it! I can see you have lots of experience, great info, Great Job Wendell!

One of the problems here in upstate NY is property taxes, many are 6k and up.

( in response to your single family that had high taxes)

If you remember, I was trying to get a 4 unit( you posted on). My agent got mixed up with the deadline and I put the offer in a day late, so it went to another buyer. Maybe for the best but I don't know.

@Mooro El Well said! I didn't get the 4plex I was looking at ( at least far enough to have an inspection) and while it didn't bum me out, it made me realize this is not easy. I am still looking for that first deal as an investor as well. Looking at a 3 unit tomorrow night I hope to look at a lot more too.

@Wendell De Guzman Thanks for sharing, you are very good at what you do. Great looking deals!

Thanks @Wendell De Guzman That is what I asked my agent to do last night, however I found out today that the owner took another offer. This was also my first offer from a investor point of view. I owned one 2 family years ago that I lived in, I sold it about 7, 8 years ago after having it for 15 yrs.

So back to the drawing board, I feel like it was good experience doing that. I was looking forward to gettting my small business started. On to looking for the next 4plex.

Thanks again!

@Wendell De Guzman I hope you get a chance to respond to this, what price would you need to see this for it to work for an investor?

The building though I have not had an inspection done, looks to be in "good" condition. Some of the $4735 cost is items like paint $200, book keeping $1230 for the year, snow/lawn/termites $560, not sure which one of those can't be all three. Supplies $1086 not sure if this will be needed yearly or what the supplies are, etc but I would need to find out all of those things before purchasing this building ( if I did at all)

The seller now wants me to put in writing my best offer ( just found out today)

So I'm coming to you for much needed advise, what if the building checks out and I can cut the cost of the 4735 in half? I won't do a PM just because it's only a 4plex all one bed rooms, 2 at $525 and 2 at $625. I don't have to buy the place however it is one of the better ones I have come across. The next thing I would try to do is split off the heat to each apt.

My offer will not go above 90k

Thanks Wendell.

@Nate Smith Welcome to BP Wealth of info on this site!

@Wendell De Guzman One more thing I notice, book keeping seems way out there at over $100 per month the year total is $1230, that's with a bonus that's crazy. He does not have a loan so he an do things like that.

@Wendell De Guzman Thank you for showing me those figures. I have been over this many times, I never planned to use a PM because it did cut into the profit by $2300 per year with the after tax income around $7700 per year. At full rental, I also did the numbers with 10% less vacancy. Not any newly built homes in the tri city area I live in for this price range say 75-110k it's all older buildings. I tried to upload the sellers spread sheet but it didn't show.

He has $100 for Comm/legal/insp not sure what this is really

$678 ins

$650 maint, what type I don't know yet

$830 for repairs not sure what type

$1086 for supplies not sure what

$6688 Taxes/water/trash

$1975/heat but's it's really $2335 or with the budget 200/per month

$200 painting

$793 plumbing furnace

$200 Carpentry

$20 Roof/Security/COAlarm also it' a slanted/slate roof

$560 snow/lawn/Termites this can't be for all three

$1230 Bookeeping/bonus not sure what the bonus is

Well,Wendell you sure have given me a lot to think about, I haven't heard back yet and I thought I may be on my way to being a real estate investor, that is the reason it's not in my title because I'm not one yet. I believe the sellers totals come to $15410 for the year. I was thinking that the $4739 would not be that much every year but I do see what you mean it raised a flag with me also, and I do know it could be more sometimes. I wanted to find out what he was paying for if I had got the far in the deal.

@Tuna Hirun I came up from 85k to 90k looking at then numbers as I did it looked like it would cash flow around $633 per month fully rented and no PM even at 95k which I would not offer.

It's been a long time since I owned a 2 family and that was not from the perspective of a investor. Everything I've learned has been from the day I stumbled on to BP

Thanks everyone who has responded to this post. This is hard because I really felt I did my due diligence.

@Patrick L. I agree with the group, you know what you got, you don't know what you may get. She pays on time for several years, keep her happy! One less thing to be concerned with.

@Matthew Edmond Thanks for the well wishes, this property is in the

Bellevue area it's a nice working class neighborhood, I'm not far from GE.

Never been to N Carolina hope to get down there soon. I love the warm weather!