All Forum Posts by: Henry R.

@Brian Green

The 3 unit we have we did 5% with a 5 year balloon, they told us at the closing that it's likely we won't pay it off then, at that point they would do a refi for 25 yrs, so I just put in 30 yrs, but you are correct it will likely be 20 or 25yrs.  (Sun Mark CC). The owner does not pay for trash pick up, no dumpster at the site, I looked for it,  all the tenants put out their own trash, which I thought strange as my understanding if you have 5 units or more you needed a dumpster? The 3k for repairs was just a number I inserted just to check cashflow on the numbers I knew, taxes, water bill, insurance, etc the 3 vacant apartments need more like 6-8K in repairs. The brick work is not in dire need of repairs it's just a few very small areas that can be done it 6 months or so.  As far as the roof goes( I don't like flat roofs) I will get an inspection done if we get that far in the due diligence.

I edit the calculator again and changed the capex and repairs to 7% as suggested by another investor on BP. Plus the units are under market rents for the size of the units and area. If I can do a RUB it will make a big difference on the water bill or perhaps just raise the rents $50 on each unit. 

This was a response from a mailing that was sent months ago, so  I was surprised by that. Many of the older larger buildings in upstate NY have flat roofs and I've had a few investors say to stay away from them, but unless you can build or purchase newer ones it's not likely you find them without flat roofs.

all in all it's not a home run (200 per door) but we'll see I'm prepared to walk away if need be.

Thanks for the great advise! 

@Jaysen Medhurst I spoke to a mortgage broker who needs to view the property, so I called the owner and explained needed another walk through with the broker. Thanks for the added advise, I plan on doing inspections as it moves along.

Thanks!

@Patrick Liska

I will work at getting the taxes lowered provided the owner and I agree on a price and I complete my due diligence that is a must have. yes $130 a door it just seems so low for a 10 unit. I know you are right I guess with the other fixed cost taxes, etc I feel like it should be higher 170-180 per door at least.

I'm going to check with renters rights to make sure it's legal for the water charge back.

Thanks so much for the feed back!

One more thing he all of the sudden asked me to give him some kind of answer by this Friday? I asked what is the rush? He just said wants to get it moving and done.

Any thoughts on this?

@Jaysen Medhurst Thanks so much for the response. We have a 3 unit with a commercial loan because it's in a LLC at 5% it's a 5 year balloon however they have already told us most do not pay it off and we can refi that is why I used the 5%, I realize this could change. I will raise the repairs and capex on the 10 unit that is a good idea. Thanks

I called to day about challenging  the taxes I have to fill out a form and get it in buy  the last week in May. The town assessment is always normally high in this city. 

I'm going to call renters rights to find out if charging the tenants for water is legal in this city. As far as the repairs goes for the 3 apartments, they need mostly cosmetics however one will need more work in the bath room so I figured 7-8k each. I just put a number in there like @Brandon Turner does just to get some idea what I was looking at however you are correct it will be much more than 3k.

When I called the owner today he all of the sudden wanted me to give him a price by Friday, when I asked why the rush all of the sudden he just said he'd like to get it done? Not sure if he understands this kind of investment takes time

Any thoughts on this? His sudden rush?

Thanks again.

@Brian Ploszay, Yes the mortgage is part of the expenses, I just don't like the high tax bill along with the water/sewer bill, $5400, taxes $14600, that's 20k, seems very high.

Thanks for your post.

@Michael Ablan, Yes it's 6500, that is what I did the calculations on, right now it's 4500 because 3 units that need work are vacant. Thanks for the tip on the water charges not sure if that is legal here but will check into it. It's assessed very high, around 471K , should I ask the owner to grieve the taxes first?

14600k is very high for taxes and as you know NY taxes are over the top!

Thank for your advise!

Henry

View report

*This link comes directly from our calculators, based on info

Hello BP Nation,

I would like your thoughts on this please.

I took a look at a 10 unit for the first time. It's a brick building built around 1920. It has been rehabbed some time ago has sheet rocked walls, breakers, carpet, etc likely completed in the very early 90's. Needs some work to 3 of the vacant apartments. right now rents are 4500 per month fully rented 6500K per the owner this is accurate. 5 units are 2 bed rooms, the other 5 are 3 bedrooms. Rents are a little low from 650 to 750. Outside needs some brick work in a few places (pointed up).

Tenants pay own heat and electric ( forced hot air) Flat tarred roof. The cashflow is low for me at 1300 or so. Good connection with the owner wants to sell to to do other things, no time, tired etc. Mention a few times knows it needs work would like to get 350-400K, however I would not pay 350K. High taxes and water/sewer. The numbers look great, however I don't really like the overall numbers. 

Am I missing something?

Thanks!

 input by the member who posted.

Hello BP Nation,

I would like your thoughts on this please.

I took a look at a 10 unit for the first time. It's a brick building built around 1920. It has been rehabbed some time ago has sheet rocked walls, breakers, carpet, etc likely completed in the very early 90's. Needs some work to 3 of the vacant apartments. right now rents are 4500 per month fully rented 6500K per the owner this is accurate. 5 units are 2 bed rooms, the other 5 are 3 bedrooms. Rents are a little low from 650 to 750. Outside needs some brick work in a few places (pointed up).

Tenants pay own heat and electric ( forced hot air) Flat tarred roof. The cashflow is low for me at 1300 or so. Good connection with the owner wants to sell to to do other things, no time, tired etc. Mention a few times knows it needs work would like to get 350-400K, however I would not pay 350K. High taxes and water/sewer. The numbers look great, however I don't really like the overall numbers. Am I missing something?

Thanks, see link below.

https://www.biggerpockets.com/calculators/shared/136829/c09ed519-32e0-4c24-98e2-d6f494b54e00

@James Gates, Congrats on your first BRRRR! You are rolling right along Great start!

We are applying for a line of credit from a credit union we did a cash out refi, however we were already told we could not buy property with it, only repairs. The credit union you used allowed you to use the HELOC to purchase a house is this different from a line of credit? I've heard of people using both methods.

Thanks

@Ian Walsh, Ditto if it doesn't work for your needs have to move on.