All Forum Posts by: Robert Gailie

I have read most of ken McElroy book. half of the utilities are seperate. Heat and water are the only bills and the land lord electric panel is 35 a month. I saw the current owners bills from the previous year. There is seperate water heaters seperate electric meters. The 1000 a month seems to be about average for the area compared to the comps. it is not unusual for the county we live in to have 1800.00 dollar rents. The cheapest comp I saw was 850.00 a month for 1 bed 1 bath apartments.

the taxes are 9500 a year I saw the bills first hand. Electric is 35 a month and oil for heat is about 1200 a month for the winter months. water and sewer was 300 for the quarter. The profit I'm getting would be 19000 a year after expenses 12% cap rate if I can get the property at 150000. It does need work and I'm hoping I can use that to my benefit.

I was kind of curious about the guy trying to pull a fast one on me. I am going to look at it today and I asked him to bring proof of the bills. Then I am going to talk to my attorney if I like what I see

Well can't there always be a better deal? This seems to be a good deal from the outside looking in. I don't want to stop at just 1 property as of now. when ever I do anything I cover as many bases as possible to maximize avoidance of any unforseen problems. I do intend to get more information from the guy and want to look at the property in details just so I can be clear of the income and expenses. I want to see the living conditions of the tenants to get a better idea of what this place is attracting. Thank you for the input!

Also The house does need some exterior work. It needs a small deck replaced and siding, which off the top of my head would be around 16,000 for all the work if it is done be a contractor. The current owner said he would have it fixed if thats what it took to sell it.

Hello all my name is Robert and I have recently decided to start investing in real estate after a lot of reading and research. I have found a property and it is a 4 family. All the apartments have 3 bedrooms 1 bath. The rents are 1000 a month per unit. Taxes are around 8500 and the landlord pays for heat, sewer and water. Water and sewer is around 200 a month according to the landlord. He has owned it for 14 years and his partner moved away. The landlord says that he is not a handy person so he does not want to do it anymore. He is asking 250,000 but is looking for as much cash down as possible to avoid the big tax bill because he has no expenses to write off anymore. He said he is willing to drop the price down to 150,000 if I put Enough Cash down. He is willing to do owner financing but the only down fall is the house is in a poor town that is known for poor people. So as a first time buyer I am looking for input on the deal from people that have more experience than I do to see if there is anything I may be missing. Thank you all.