All Forum Posts by: Kyle Barry

Douglas, thanks for your reply and the analysis on the numbers. I havent heard of the GRM yet. Can you explain how that is calculated and how you use the 100x figure to determine how good a deal is? I did some searches on GRM and what i found isnt the same calc you are using.

Emily, that is exactly what I got.  Andrew, thanks for the tip on remaining conservative to make sure we will see real cashflow after all said and done.

The challenge seems to be finding a property on the MLS that is well maintained and also has strong cashflow without having a glaring deficiency such as an extremely steep hill. This is why I joined this sight, to get answers to questions like these:). I need to do some more reading.

Hi Emily, my analysis came in a little higher because all of the water / sewer / garbage is payed by the tenants.  They are very well maintained.  The only issue with them i see is that the boilers in them are pretty old and the hill is incredibly steep.  When i pulled in to the driveway my right rear wheel came off the ground!  So the hill might be a deal breaker for me.  Outside of those things they are great.

Bob,

Great question because I almost missed that. i did include the interest from the HELOC in to it.

Thanks,

Kyle

Thanks everyone!

Hi Michael,

Thanks for responding! The way I posted it isn't very clear. I would be putting a 20% DP on the loan, payed out of a HELOC I have that is at 3% interest. The loan from the bank will be at 5% interest for a 20 year loan that becomes variable after 10 years. I have found the same to be true in Pittsburgh that the minimum is 20% DP. Any further thoughts on this?

Thanks,

Kyle

BP,

I currently have 4 duplexes, probably C properties.  This was my first deal and I probably over-payed and took on properties that needed more work than I could have anticipated but I made sure the rents/sale price ration was high to cover it so It hasn't wiped me out... Also, I have learned a lot from this experience.  So that is some background of where I am at..

I am looking to do my next deal soon and am looking at a property tomorrow.  I'm not necessarily asking anyone if I should go for it but wanted to know if you saw any red flag in the numbers?  These would probably be B properties and are very well maintained, and simple brick structures.  There are two lots that each have 2 up an down duplexes on them.  Here are the numbers for 1 of the lots. They are basically identical.

$2300 rent per month (4 units from 2 duplexes in same deed)

$161,000 asking price

All utilities payed by tenants, including water:)

Taxes are quite high at $6500.  However, the assessed price is about $40-50k higher than what i expect to purchase this for so i think I can get the taxes down to around $5k to $5.5k.  I did this on one of my other properties already

With 5% financing at 20 years, $250 / month for maintenance and $150 for insurance i believe I can CF $500-600 / month. I can easily finance the DP with a HELOC I have at 3% and can get a 10/20 loan from a small local bank at around 5%.

Does anyone see any red flags in these numbers? After looking at hundreds of properties on the MLS over the last 2 years, this one definitely is at the higher end of cashflow potential. I would love to hear your opinions. Thanks!

Kyle

Joel, thanks for the tip, i deifnitely will!  

Mhamed, thanks! Have a great rest of your week.

Hi guys,

I have recently been searching the internet for a group of investors to associate with and learn from and looks like I found exactly what I was looking for!

I am a novice investor and have owned 4 duplexes for about a year and a half.  I'm looking to do my next deal this summer and would love to hear what other people have been able to do in their deals.

Looking forward to talking!

Kyle