All Forum Posts by: Henry R.

Thanks to all that have given advice, let me clear up one thing. I never got the chance to make an offer, it was made by someone else, the listing agent wants to choke is client. LOL, so I planned to keep an I out on it.

Thanks again

I agree, already have a 2nd one to look at. Thanks James

Thanks for the replies,

I have not seen the bldg as of yet just on the outside. The owner will only allow weekend viewings. From what the SELLERS agent told my agent the place is in very poor condition and needs a lot of work. It's not moving after dropping the price from 117K to 115K, and no I don't believe it's worth 95k, I've seen some pics and the outside it run down.

More thoughts? Thanks

Hi everyone at BP,

I'm looking for some advise on a property that I ran some numbers using an on-line investment Caculator.

Here are some figures based on a 20% discounted from the asking price of 112k, which I know is not likely to happen, you'll see why later.

Purchase Price 89,600 after 25% down.$22,400
Loan rate 5% 30yrs
Montly rental $2125
Rent increase per year 4% per the calculator

Inflation 4.0
Property Growth I changed to 2% from 6%

Loan 67,200

ins 650 per year
Taxes 4900
Monthly expenses 250 no PM at this time not including taxes.

Income 25500
Expenses Ins 650
Taxes 4900
Monthly exp/fees 3000
Total payments 4320
total expenses 12870
Cash Flow 12630
tax deduction interest 3360
Depreciation 2932
Rental income 25500
Total tax deduction -10658
Tax saved -1598

Net Worth after tax cash flow 11,032
Principal paid 960
Property Value 91,392
yearly addition to net worth 13784

I was told today by my agent, that the sellers agent said it is a real dump and the seller turned down a cash offer of 95K

It's listed as a motivated seller, but it does not seem that way. Price just lowered from 117K to 115K.

J. Scott had a challenge today so I called my agent right away after giving her the address last night. But it looks like I will not get to make an offer at least on this property.

It is not worth the 95k they rejected.

Thoughts on the #'s given anyone

Thanks in advance

Just got off the phone with my realtor, to set up an appt for a 3 unit this weekend that I have been looking at. She's been away and is booked but will try to get is in during the week day even though the ad said weekend shows only. In motion

Hey Cole,

Welcome to BP, you will find people with vast experience on BP like Brandon Turner, J. Scott and many more.
Best of luck to you

I had a 2 family for 15 years, sold it about 7 yrs ago. When I do this again I want to have someone else manage it and I will manage them. So it's been a while and I didn't know many of the things back then that I do now because of BP. I'm not all that excited about the property but I wanted to get some thoughts on it.

Are you a by and hold investor?

Thanks Zechariah

Thanks Ryan,

Not sure if it was converted or not, however it is listed as a 3 family on the public record. The area is zoned res and comm. I'll have to check on the heating cost but the furnace is junk and out of service, 2 units are vacant and 1 is being used by a guy that is not working but takes care of the property owned by the bank, per the tenant living there now. He has electric heat. I would want to have 3 furnaces install if I would make an offer, and dive into it. I would offer 12k building is in very bad condition

This would be a buy and hold.

Thanks again

Hello BP

I took a look at this propery last week, asking price from the bank is 24.9K. It looks to me like it could have been a single family at one time, turned into a 3 unit. There are 3 electric meters on the side of the house. One furnace. Building needs a full rehab, even though one person is living in it. This is a C neighborhood.

Building has leaking pipes in the basement, built in 1910, all 1 bed rooms, 1 bath, old style windows, no insulation, needs new roof, 3 furnaces and the list goes on. I brought a person I know with me who does handy man work for a living and his thought were 50-60k to rehab. Avg sale price for comps is 49k with a high of 90k and this from only 4 homes ( on one website).
Taxes est at 6k, plus bank I deal with does not do contstruction loans on non owner occupied.
Rent would be in the 600-650 range.

Hope that's enough info, I will likely pass on it.
Thoughts so far?

Thanks to all.

Hey Art, welcome to BP

Are you a part time pilot?

Best wishes to your RE business ventures.