All Forum Posts by: Account Closed

I'm self managing for now, but I'm gonna be looking for good pm soon. 

Hi,

I'm a realtor and investor in the area. A partner and I started buying about a year ago in the Metro East. We have 4 houses and a 4plex as long term rentals and have flipped two houses. I'm always looking for good multifamily (and SFR), but there isn't a whole lot of multifamily that goes on the market here. LoopNet is full of deals that have been there for a year and are mostly overpriced, as I understand is typical of most places. You can get pretty good returns on duplexes and single family, but you have to know the area as Belleville, Fairview Heights and Swansea can be spotty in terms of neighborhood quality. We were lucky to get a house in Mascoutah in a good neighborhood last year around Christmas for 106, put about 10 in it and it appraised at 155 and rents for 1400/mo. Those deals have dried up, as the area housing market improves and I've only really found undervalued stuff at lower price points. The forclosed stuff is being listed at 150 in that neighborhood now. I've yet to find anything in Shiloh or O'Fallon that fit my criteria and was undervalued enough to buy. On Ronald's point about the base, I'm in the Guard here, and with the various Commands here I think the base is BRAC safe for the foreseeable future.

I'm sorry, I mistyped. 780 is the sq footage. 625 is the rent. Should make more sense. I'm going off assumptions from the realtor/owner now, I have the request for actuals in before I offer. 

I found this on the MLS, agent owned. I called and spoke to her for a while and got the following. She told me the PM company can get me the financials this week. My questions: What else do I need to ask? is this a good deal with the info that I have right now?

New roof and decking in 2013, 4 of 6 have been completely remodeled, other two updated per pictures and listing.

6 unit apartment building. 245,000 list.

2 1BR 475/mo

4 2BR 780/mo

3450 total income a month

Management in place at 6%

4000/yr property taxes

electric paid by tenents

water/sewer/trash 300/mo

Tenents on 1 year leases, fully rented, two long term tenents on month to month due to relationship with seller/PM

Its a decent B class area.

local cap around 8 from what I can ascertain.

At an 8 cap i see it valued around 220000. Tear me apart.

Thank you all for the input. I love that I can get real input here from impartial people.

I've got a question for you all. I'm a new investor with very little track record. I'm a captain in the Air Force and make good w2 income and I'm moving from the info gathering stage to the buying stage. I talk a lot about what I'm learning here and through books etc at work and a guy I work with recently brought up buying a multi family in a partnership. I recently got a real estate license to buy and sell investment properties and I think that adds credibility in his eyes. I've got a good professional relationship with him and he's somewhat of a mentor to me. He bought a house in Denver about 10 years ago for cash and has been renting it for the last 8. He recently sold it and has 250k in cash ready to invest.  I've got about 80k available cash. The problem is other than that there is no commercial track record. He would like to buy a 500k-1 mil property.  I've got a good relationship with a loan officer at a local bank, and I plan on attacking every selling realtor locally on dot loop to find a property. I mentioned to him that most loans are going to expect the investor have a net worth high enough to cover the loan and his response was "it wouldn't be a problem".  This is a huge jump above what I was looking for, but I'd love to make it happen.  All input on how to succeed welcome....