All Forum Posts by: Chris Jackson

great thoughts, corby. thanks. the price that works for me with the numbers is buying at 275000. I am confident that the building would appraise around 330000. I know you don't buy based off of appreciation, but I do know that the area is being improved and built up a lot and that tend will continue, so I am confident that I will be able to refinance in the future and the value will go up. it is interesting what you said about capital improvements because I do not have much capital right now, so that worries me a bit. 

@Kate Hall my brother lives in York, and I am trying to get him turned on to real estate investing. Did you already sell your property in York by the college? If not, could you email me some pictures?  [email protected]

Thanks!  And if you have a mailing list, if you could add my e-mail to that list it would be great.

Thanks!

Another idea @John Nisewonger, is to wholesale this deal. it would be less profit for you but your money also wouldn't be tied up for long and you wouldn't have to deal with the capital needed for fixing the place up. I know that's not what you're going for, but just a thought.

Hello. I am in negotiations right now over an 8-plex in PA. Could anybody interested in doing a commercial loan please PM me and let me know what sorts of deals you have available??

Thanks

So I ran more numbers and got the facts from the management company. It looks like I'll make about $1500/mo from the 8-plex. After I take out 5% for vacancy, 5% for repairs, 5% for CapEx, 8% for prop.management, and considering 6% interest-only payments to the owner for owner-financing the 25% down I'll need, I would still clear $300 a month.

That feels tight for me since this is an 8-plex we're talking about - but after a year when I refinance the place I assume that I would be making more money each month, right?  Does anybody know what sorts of commercial refinancing loans are available out there (or at least typical)? What do you guys think about those numbers now that I finally got my act together?

I want to give some stats and my idea before I make a verbal offer on a property. If anybody reading this could double-check my ideas and let me know if there is a better idea out there, I would be so grateful! I do not have any capital right now, as this will only be my second investment property, so I am hoping to convince the seller to owner-finance the down payment. I know there are some assumptions in my math, but I'm making it as close-to-reality as I can:

8-plex (commercial financing)

Asking Price:                                      =                                                                                $290,000

Down Payment: 25% of 290,000       =                                                                                   $72,500

Mortgage of 217,500:     5 yr loan, amortized over 20 yrs @ 5% =                                           $1,435

Second Mortgage held by seller of 72,500:  5yr balloon, 6% interest-only payments =           $362.50 

Gross Monthly Rent  ($55,000/12)                                                                                =          $4,583.30 

Monthly Insurance/Taxes + Prop.Management (1833 + 275)                                       =          $2,108 

RENT - EXPENSES (2 Mortg.+Insur.+Tax+Prop.Manage)    4583.3-3905.5           =        +$677.8/mo

This does not seem like a very good deal to me.  Did I mess something up?  Or maybe my numbers on the monthly taxes and insurance are wrong?  Well... I'm going to go get more information but since I took so much time typing this up I'll go ahead and post it to see what you guys think. I guess what I'd really like, since I'm not sure about those numbers anymore, is whether there is another/better strategy for getting me into this commercial loan deal other than having the seller finance the down payment?

Thanks!

@Jeff Fruhwirth on that financing that you got, how are you going to make that balloon payment in 15 years? I know that is a long time away but I suspect you probably already have some ideas?

if that is all you make with a 14 unit building then it definitely sounds like a lot noted hassle than it is worth. thanks for the point of reference! 

that is good advice.  my family is happy in the townhouse right now but I understand how great "house hacking" can be with buying a duplex and living in half. I am about to close on a duplex right down the road from the 8-plex I am currently considering.  the numbers look good I think bit you're right that it will be a bit of a headache probably.  I will be keeping the current management company that is already in place 

looks like taxes are about 3000 and the utilities for the year are about 16500. the etc is metered out but the water and sewer aren't. I was thinking the laundry would just be for the tenants not the public. not sure about the basement for laundry. it is unfinished and dirty but it is quite large. I could easily get 4 washers and 4 driers down there. that sounds like an expensive thing to do but that would keep the other place producing income which I love. the condition isnt great on the inside apartments. they all from what I saw today need some cosmetic work. but they're all rented also which is nice.