All Forum Posts by: Niyi Adewole

Mike Hanneman good point it is a very tight cash flow. M I took a look at the competition in the area, and this is one of 2 houses that has a washer and dryer in each unit and a brand new garage in back. I believe with these features I can bump rent to $800 per unit. ($800 for the 2 bed 1 bath, $800 fro 2 bed 1 bath, $800 for 1 bed 1 bath with garage spot, extra garage spot $75 to whichever other unit wants to rent.) Other consideration, I currently live less than 5 mins away and pay $1100 per month in rent. This is directly adjacent to a neighborhood that is booming. Although yes I would be paying to live still it may be significantly less and allow me to save more for a better deal in 2017. Plus I am blessed to have a great sales job that will allow me to not take any money/cash flow out of the property. That being said, I'm still in the inspection period until thus Thursday and I can walk away.

Hello Everyone, I am closing on my first property early next month (a tri-plex that I purchased using an FHA loan. I will live in one unit and rent out the others.). I would like to set up a single, member managed LLC to act as a property manager for my property and future property. Question: Do I need to have a brokers license for this LLC to be legal? Again this would strictly be used to manage my own properties, which will eventually be in their own LLC. Any and all advice is welcome!

I am now 6 days away from the end of the inspection period, below is what the complete analysis of the property looks like as is. The previous owner was an investor also and he took very good care of this place. He said he had only one maintenance request in the past 12 months, and after combing through the property with the inspector i actually believe him. 

Previous owner is selling this so that he can upgrade to an apartment complex. You all helped so much before, please let me know what you think after viewing the link below. 

https://www.biggerpockets.com/calculators/shared/3...

I am 1 week away from officially closing on my first property (Tri-plex, live in one unit rent the other 2 out). I used an FHA loan to secure this first property, and have started shopping around for insurance. Below are details about the insurance quote i received from Liberty Mutual:

Estimated Replacement Cost - 401,083

Dwelling - $301,000

Other Structures on Insured Location (I.E. The garage) - 30,100

Personal Property - $150,500

Loss of Use of Insured Location - $60,200

Personal Liability - $1,000,000

Medical Payments to Others - $5000

TOTAL 12 MONTH POLICY PREMIUM - $2,434.02 (or 202.84 per month)

Question:

1. Is this enough coverage for my first property? (Triplex, 2600 Sq ft, Househack) 

2. Is this a decent price? 

@Ryan Dossey True, insurance company makes money by finding ways out of covering repairs. Thank you for the insight

@Mike McCarthy Right, they're not going to be the ones fielding angry tenant calls. I will focus on building up capex funds. 

@Justin Fox Line of credit would help grant me peace of mind and take over as an emergency fund. 

@Chris T. Seller will purchase the first year, which will give me enough time to build up my capex

Good Afternoon Everyone,

I have my first property under contract and I am mid-way through the inspection period. The property costs 192,600 and is currently bringing in $2200 per month. It has 1 brand new Furnace and 2 that are aging. I was recently told that a home warranty would cover the cost of one of these furnaces going out, and have started looking into it. Home warranty costs $750 per year. 

Question: Are Home Warranties worth it? Or should i just set aside additional cap-ex to replace the furnace and other items when neccessary?

Good Afternoon Eric, Welcome to Bigger Pockets! If you haven't started listening to the podcasts yet, they will teach you a lot. I'm a new resident of Louisville, and have my first investment property under contract pending inspection as we speak. I plan to manage this one myself, but in the future I would love to have a property management company take over. Could you send me some information on your management company? Niyi Adewole

@Christian Bors Will do, and great question about the furnace. That is the first question i will ask the inspector on Saturday. 

@Matt Lavinder They did use carpet in the bedroom and now that i think about it on the stairs as well. The person that purchased this property did so in september of 2014, he is looking to move into apartment complexes so he is liquidating his stock. I also saw the house directly next to this listed for 163K and that house was run down and awkward but still rented for good amount. I believe the gross rent on this could be raised from $2200 to $2400. 

@David Heath $2200 for all three plus the garage. I'm preapproved for an FHA loan at 3.375%. I would live in one of the units for the required time (learn first hand how to handle the day in and day out of a landlord/property manager) and then move out. Estimated Mortgage $875

@James Wright Thank you, i took down notes and will make sure i get answers to those questions. My thoughts exactly about the House Hack. This will allow me to cover the mortgage and expenses based off 50% rule allowing me to live for free and save my current rent checks for more investments. 

ALL- Thank you for the responses fellas. I truly love this website and will be purchasing a pro membership soon. I plan to use one of my 5 free Buy/Hold calculations to run the REAL numbers this weekend. Counter offer has been sent, acceptance should be coming soon. 

@Christian Bors True, thank you Christian. It's within a mile of the university of Louisville, mostly students or recent grads on the block. It's not an upper class neighborhood, but it's not a warzone either, if I had to honestly rank it I would say C-class. 

I'm going to have the inspector come in this Saturday and will be able to update the Cap-Ex. I plan to self manage using the buildium platform to automate a lot and screen tenants. Utilities are separately metered, (3 water heaters but only one furnace. Not sure if that is an issue). Owner pays sewage and water. Tenants pay electric and gas. 

Prior to inspection, I don't see a cap-ex coming soon. I believe I would have enough capital to cover as well. 

Good Evening Everyone, 

I am on the brink of my very first multi-family deal. 

Counteroffer from Seller = $187,600        

Tri-Plex with a garage are currently renting for $2200 a month.

Brief Description: Built in the 1900's. Metal roof painted and sealed, flat roof replaced in 14'. Most plumbing converted to PEX. Upgrades include, but not limited to, new cabinets, counters, sinks, faucets, appliances, stackable washer/dryers, toilets, vanities, carpet, paint, and smartkey door locks in all units (2014). 

I will be giving cash for keys to one of the tenants and living in one of the units. Would you take this deal?? When i run the numbers, i believe it works; what do you think?