All Forum Posts by: Ryan Smith

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So I did some searching and could not find any threads about this. Maybe I was searching the wrong words. Has anyone added storage units to their apartment buildings? Such as in extra space near the parking lot, or against the back wall of the complex? Is permitting usually necessary for this type of value add? I feel it has a huge return on investment if done correctly. I am trying to figure out what the extra costs associated would be that I am not thinking of. 

Thanks so much in advance. 

This one I just closed last week. Renting out the main house and  living in the back casita. I am starting work on the house now, my roommates are moving in on the 31st. Adding a bathroom to the main house and some other minimal repairs (painting, new countertops). In the Casita I have been painting it and making all the minimal repairs myself the last couple days. Payments are just over $1,300/month. pool service, $100 projected( have done the chemicals initially myself), landscaping free, all desert scaping, not much work to do. There are two trees leaning on the house that I plan on removing and putting up new wood fence. 

@Kenny Dahill, the higher rents being paid in my opinion are why I like the student market. But everything has its costs! What parts of Arizona are you currently investing in with stable long term tenants? 

link to loopnet lead: http://www.loopnet.com/Listing/19558405/4512-North...

• 8.4 % Cap Rate
• Rents below market value
• 100% Occupied with a waiting list
• Completely converted to individual electricity
• Tenant profile has been completely upgraded
• Beautiful landscaping

@Ryan Swan I think that thinking of it as a one month house vacancy would be the most accurate. In Tempe I cannot see more than a month of vacancy around campus. @Nate T. I need to re-listen to that podcast!

So the cross streets are around priest and university. So about 2.5 miles off campus. I was renting on a room basis but this may not work as a majority of the renters in my friends group have already found living situations. I thought 5% vacancy would account for the month of vacancy in between school semesters. @Ryan Swan

The utilities would be paid for by the tenants is the plan. @Nate T. that is kind of the plan originally, having trouble finding renters now from my initial friend group because everyone has been signing leases the past couple months. 

Orginially didn't let me post my stats, I edited and reposted. Thoughts are appreciated

I have this property under contract, thoughts on the deal would be appreciated. I have attached my numbers on cash flow below. There is a 5th bedroom but I would be staying in this room. There is also a pool, I didn't account for this in the expenses, I'm assuming it is around $50/month. Should I go through with this deal? It is in a college town and I the rents  in the area range from 1600-2500 for similar houses. Some with pools some without. I will also be spending 10k on rehab up front so initially I will be putting down about 33k.

It won't let me post my link so the deal facts are,

2200/ month in rental income

$2,090 after 5% vacancy

Monthly expenses(PM,Rep. maint, replcmnts, reserves) $260

Purchase price $220k

Loan amount for 203K

Acuisition costs fees $1,349-2000

30 year mortgage FHA financing with 10% down. total monthly payments of $1,249 and then going to refinance in a year.

Total Cash flow before taxes monthly: $580

@jonna 

@Jonna Weber This is going to be a buy and hold, I have noticed they are very skewed. I am going to be getting it under contract today. I will be trying to get them to repermit it but if it cannot be done in the 30 days It will not be too big of an issue since I am going to be living in the back house anyways for the time being. I appreciate all the advice!