All Forum Posts by: Richard Humphreys

Thanks much James

James, I am looking for a reputable property management company that might handle rental properties from Cleveland over to Conneaut, Ohio. Your thoughts are much appreciated.

Richard Humphreys
Vancouver Wa

Tammy:

I am looking for a residential investment real estate broker in the Wilson or Williamston NC areas. Do you have any recommendations.? I am looking to learn as much as I can about the potential for buy and hold multi family investments. I spotted a property in Williamston that looks promising on the surface but I need to dive deeper.

Thank you for your time

Richard Humphreys 

Micheal, did your search for a building inspector yield positive results ? I am now in the market for an apartment building inspector in 

Las Vegas. 

Richard Humphreys

Vancouver, Washington

Thanks for the great reply. Inspection of the building is the next step. The real estate agent tells me that she would only order an inspection upon an offer. 

I would like to be absolutely sure of the condition of the building and the rental history and rehab costs before making an offer. 

I calculated a 10% increment each for maintenance, vacancy rate and management. 

Pest control was considered an accepted element of maintenance. Should I break that out separately? 

The calculated expenses also include insurance. I am grateful for your comments and any further cautions that you may have. Thanks Niels. I will keep you briefed.

Richard 

What am I missing?

I am a first-time investor. I have located a triplex in a college town of 69,000 people. The state university has 21,000 students. The triplex is located 1 1/2 miles from the State University closest. The triplex is priced at $30,000. The MLS listing says it when unit is rented but I suspected all of them are vacant. This is a possible investment in a town with which I am familiar but in which I do not live. I would need a reliable management company. I have built in the cost of a management company at 10% of the monthly expenses. The property has been on market for 370 days. My initial projections based on a buy and hold analysis are:

$1550 a month in income(Lots of assumptions here)

$904.78 monthly expenses(Including maintenance, management, and the vacancy rate)

$645.22 monthly cash flow

23.45% pro forma Rate

$9240 net operating income

x 50% for expenses equals $775

Monthly interest/payment equals $124.78

Total monthly cash flow using 50% rule equal $650

82.90% cash on cash return on investment

30.90% purchase cap rate

Total operating expense $780 dollars a month

As I stated earlier, the house is close to downtown and the State University. The town is attempting a downtown revitalization effort. Part of that effort it involves attracting residents to the downtown area. The cost of living is quite a bit lower than the US average. In the ZIP Code of where the property is located the average rent for two bedroom is $650 dollars per month. The average two bedroom rent for the town is $790 a month. The average rental for two bedroom and the state is $764 dollars a month(all based on 2016 Numbers)

The things that I don't know(that can kill me)

1.Occupancy history (Vacancy rate and why?)

2.Repair history and cost of repairs going forward.

What else am I missing? I need criticism, criticism, criticism….and some suggestionsJ

Thanks so much

Richard

Welcome Brandon

This discussion thread is dated by about six months and I am sure that the Tacoma Pierce County market has evolved. I need some “reality check” advice about this market. I am looking to invest in my first multi family rental property. I have 300k va or conventional borrowing authority and I am working on an additional 100k.

My current impression: a fourplex in Tacoma/Pierce county is just about out of reach at 400k assuming I get the borrowing authority. Assuming I remain at 300k, my most realistic goal is a duplex or a triplex. Any thoughts, suggestions, criticisms or insights would be greatly appreciated.

I am attempting to finance my first purchase of a fourplex with my GI Bill. I am told that I must show the VA underwriter that I have 6 months of payment reserves (doable) and evidence of a past history of being a landlord (not doable). Any suggestions for a newbie?

Wonderful checklist. Thanks so much