All Forum Posts by: Ryan Milne

Okay I got a reply back with slightly more information.

Sir -

As per the attached MLS sheet for this property, it is being sold because the investor is retiring.

I do not know the terms of the lease or if the property is in need of repairs.

Thank you,

**********

This means that instead of my guessed 1,200 a month. The gross income turns to 1,545.

That in turn makes cash flow 505.25.

@Anthony Certonio

Hey, look at that more Navy. Go figure. Thanks for your service and I sent a colleague request seeing as we are interested in the same area. Thanks for the welcome.

I did end up sending an email. It was the automated kind from a listing website, and after work today I had a reply waiting. It contained a link to the MLS listing with almost zero new information on it.

I ended up sending a reply and asked a few basic questions. Here is a copy of what I sent.

********,

Just a few questions if you don't mind. I'm out of town until the 2nd so I can't swing by.

What is the reason for the sale?

What is the split in the triplex, as far as bed/bath? I assumed 3/1, 2/1, 2/1. The listing said 7 beds and 3 baths.

Are there any tenants in the home, if so are they under lease? What are the current lease terms?

I can come by and look at the place sometime next week, but are there any repairs needed? Interior/exterior work necessary?

What does the seller need?

Thanks for your time,
Ryan

Let me know if I asked the right things for an interested intro email, or if I missed a major question or extreamly pressing piece of information.

Ryan

@Logan Hassinger

Well, maybe that's why its been on the market for 222 days with so called "motivated sellers".

I also don't have a good handle on if any inside repairs are needed. So is the end of all this a decision that in you opinion the property is not worth persuing for more information?

@Logan Hassinger

Don't forget I haven't called about this place yet. Just a numbers check to see if I had the swing of things. As I stated in the original post, rests from rentometer.com are between 530-590, so that could change things a bit.

@Logan Hassinger

Its a military town, I remember when I first moved off base I rented a 2B1B for 600 a month. There could be a variety of tenants, but that might just be me looking at the numbers and refusing to see that it just wont work.

Could I ask then, with the numbers provided, what kind of offer would be feasible in your opinion. I know how to use the 70% rule to calculate MAO on a flip, but not a rental.

@Ethel Weaver

If you have all these numbers I would encourage you to finish up the math for yourself, then post the entire analysis so others can look at your completed work. So take this all the way to completion.

Go ahead an calculate the percentages for vacancy (10%), maintenance (5-10%), cash flow, CAP rate, and ROI percentage.

This way we can not only look at the deal for you but also help check and grow your own ability to fully analyze a deal.

Ryan

@Chris Seveney

The tennents pay all utilities associated with the addresses.

I listed cash to close as 20,000, That would be the amount I had planned on bringing into this deal, and felt comfortable with.

The Triplex is listed for 124,900, and I'm assuming if it has 7 bedrooms and 3 baths it must be a combination of 3/1 , 2/1, 2/1.