All Forum Posts by: William Huston

I would still classify myself as a newbie in the real estate investing world, i have 3 rentals currently, but they all came from my military days as personal owned homes that i kept and turned into rentals, i had 7 rentals at one point, but i sold off the non-performing properties as soon as i could break even on them. The last few months i have been looking into another property to buy as a rental, but i feel like the prices around me are just way overpriced to make a buck. Seems like every deal i come across when i run the numbers the property is barely breaking even if i purchase and turn into rental. 

Just curious what others think on this as of lately, seems like the prices are climbing at the rate of pre-2007 did.. 

@Brent Coombs

I really appreciate the input, i am rather new to the proper ways of purchasing rentals and investment properties. I am trying to learn the correct ways of going about it now. I have basically been blind investing in real estate for 14ish years. I was in the military and hated selling the houses after getting new orders because some areas i was only there for 1-2yrs at times. So i started buying houses for me to live in and then turned them into rentals afterwards, which turned into about 2.2k in passive income over the years. Now that im out of the military and learning a new profession of being a Realtor, i want to properly find rental properties to further increase my passive income. 

I am trying to figure out a nice easy and quick way to input properties that pop up on the MLS and other sources into a database so i can track them and determine numbers all in one place. I have been using Podio recently as my CRM as a Realtor, so i figured i would make a quick and dirty app to view properties numbers, most of the fields are auto calculated from the MLS data... The only info missing from this so far is rehab cost and insurance as far as i can think of at the moment.

Whats are good way to determine repairs per unit future cost?

i was asking more along the lines on estimating repairs in the future while going over the numbers on a property to see if its worth it or not.

Well i did get to see the property today, there was unfortunately 3 other investors there also. The location is was ok... about a C area. The house was pretty well maintained. The exterior is in decent condition and the roof looked really good for 12 years old. The right unit is the one the older lady has lived in for a long time, it was actually in not bad shape. She took great care of the property. The most it would need is an update to the kitchen later on, but it all functions. The bathroom looked a little worn in the shower, but she was not complaining of it. The left unit was not in as nice of shape. the floors are probably going to need to be replaced with all new carpet or something else. The bathroom looked like it hasnt been scrubbed in years, the residue on the walls was thick. The kitchen was ok, but could really use a really really good cleaning. The person living in it is a man who is tied to an oxygen tank so he isnt able to do much really. 

In regards to the payment history i cant really get that info right now. The agent said that the property is part of a trust sale from a person passing away with no instructions on paperwork on what to do with the properties or where they kept the books on the property. 

Duplex: C area

LP: $104,999

2 x 2/1 w/ month to month tenants 10+ years both sides

Rent: $650/each

Taxes: $1140/yr

Insurance $860/yr

Units have own meters for water and electric

Roof 12 yrs old

A/C 1: 8 yrs old, A/C 2: 2 yrs old

HWH 1: 8 months old, HWH 2: 19 yrs old

I tried to run the numbers on bigger pockets, but the last page of the calculator keeps loading as an error for me. I did the quick 4 square math and the deal seems too good to be true... As a new MF investor i am just making sure i'm not overlooking something before i make an offer.

What are some good estimates on repairs and such per unit?

I am still learning, am i reading this correctly? 

You're currently making $80ish/unit per month?

Im seeing a cap rate of 6% correct?

Sorry if the questions seem negative, im just trying to understand more, i have been looking for minimum $100/unit in my deals ive been analyzing as i stride to buy my first MF. Also i was told by someone i talked to previously that i should stride for 10cap or higher on deals, is this not true?

The only crappy thing in my area is there has been a handful of hedge funs running through my area buying up all the properties for investments. Like 9 of the last 13 MF units ive looked at went under contract under the same LLC.