All Forum Posts by: Philip Marsh

@Rivers Plowden  My day job is salesman/estimator for a construction company so getting repairs taken care of is not a problem.

I don't have a quote for insurance yet.  

I don't expect appreciation as it is in a small town.  

Loan terms are 20 % down. forgive me..... I don't have what I wrote down in front of me, but I think it was 5/20 ARM @ 4.75% interest.

My main motivation is that I have a large profit coming from a flip.  My accountant told me I could use the some of the profit to make the down payment and do a 1031 exchange.  I think he called it a partial 1031 exchange because I wouldn't be using all of the profit towards the purchase of the multi family. 

Units are metered separately.  electric Baseboard heat.  Electric only in the units.

 Trash is $40 per month for a small dumpster.  

Landlord pays utilities on the laundry, storage, garage building.  

Gas heat in the laundry room.  

His expense sheet shows he was just paying minimums for gas, etc. on that building.  I think it was around $75 per month. 

The owner is an older man.  Seem to just be a tired landlord.  He admitted that he had neglected the property and had some bad tenants over the last couple years.  He said he has been getting people out over the last couple months or so.  I get the feeling that he intended on fixing up the units after he got people out but decided to just sell it as-is.  He said he needs the money for another deal is working on.  

The 1 remaining tenant is living there on an expired lease but the owner said he always pays his rent.  He said whoever buys the property could decide what to do with him as he is only paying $400 per month and he said he has no idea what his unit looks like.  The owner hadn't been in there in over a year.  

I have an opportunity to buy a 6 unit multi family. I have run the numbers multiple ways and feel like it's a good opportunity. 

I am not 100% percent sure how to analyze this property so just looking for some input or advice.

I've always thought if I was going to get into rental properties, I would start with a small multifamily.  This may be that opportunity.

Some of the details:

Asking price is 115k

One unit is occupied.  The rest are vacant.  

Each unit needs carpet and paint only.   I'm thinking roughly 3k per unit for repairs. 18k total give or take.

He showed some income statements when the units were filled. He was getting $450 per unit.

There is a 2 car detached garage with a coin operated laundry room and a storage room.  

He rented the garage spaces for $25 each.

Storage room $25

roof is shingled and about 10 years old. 

$5100 property taxes.  A little high. I think I could get those lowered.  

I have the money for the down payment and am approved for the loan.