All Forum Posts by: Sean Ploskina

Be more conservative with your numbers.  Assume things will go wrong at the beginning and you will be much happier later on when they only kind of go wrong.

Be patient.  Yes its been a few months and you haven't found a good deal.  Better to wait to get a good deal and jump the gun and regret it later. 

It only takes a few good deals to make you and a few bad ones to break you

You certainly can find a property that will cash flow at 3.5%.  It amy not be right in your area but nearby there will be something.  In this market it might a challenge but there are always deals they are just harder to find sometimes.

Welcome to the area and the game Amanda

Great tip Travis.  Its always sad to see how big a difference of opinion there is on things in this business.  If you find someone you can trust pay them well and keep them happy!!

Welcome to BP.  Be sure to check out the Beginner's guide and their awesome calculators!

Here in Norfolk, VA. It is an exception around here though as most are 130 and up

We actually couldn't get the 203k loan.  My Debt to income was over by 3% if we added my wife our ratio would be good but we would have more than 4 loans so we had to scramble to get something else.  Good thing we requested 60 days to close initially.

After three months after the VA accepted my offer we finally closed on friday!

We purchased a 3/1.5 on each side duplex for 92k.  In our area it will rent for 900-1000 per side.  It is going to need about 6-8 thousand worth of repairs.  Nothing major but is getting a new bathtub which held up financing.  

At every stage there have been new hurdles, from the 203k loan falling through to the VA never clearing leins that were from the city for not mowing the yard. We are not rented yet but we are over the hump.

Can't wait for the next one!

@Tim Kelly

Use the rental property analyzer here on BP.  Its free for a couple uses and will help catch all the little expenses that can add up.

Check portsmouth's website for how the property is currently listed and is it zoned for multi family.  

Remember that hampton roads changes areas quickly so don't compare 21st street in Norfolk to 27th; very big difference.

Have you driven the neighborhood?  Not just your potential property but the surrounding area?

Has she provided any costs yet?  If so double whatever she said it cost.  If you move forward verify with copies of her returns.

That said the price to income looks good.  However most of the multi's in Norfolk are at least 20 years old so I believe your repairs and capex should be higher.  I assume 10% repairs and 5% capex until I get documentation from the previous owners.  Are all the units rented currently?  Being on busy road might not be a plus either if it is Tidewater or Chesapeake.  

I currently have SFHs that cost $50/month for insurance.  Also if you are too close to the water here it can disqualify you from most insurance companies and you will need flood.  

Last the vacancy is a bit low even if your rents are bit low which it looks like they are. Maybe 10%