All Forum Posts by: Taylor Holden

Bump. For more opinions.

This is a 4 unit multi family. I can see in the future a area to raise rent, add value, and sub meter water but this is exactly what the property is doing right now with the current owner. I was going to manage the property myself but wanted to know if I ran my numbers too conservative or what. 

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hey all,

I'm beginning my rental property investment adventure. I already house hack my personal home. I've found a small multi family (4 unit) that I want to go after. To start off I really am looking for great lending. I need something closer to 10-15% down fixed over a 30 year. I have been having trouble finding this with any bank I speak with some banks catagorize it as a investment SFR, some go straight commercial.

Does anyone know any good lenders in the tulsa area that understand this business and when I show up with a calc sheet and ROI they will see the benefit versus just giving me the immediate commercial rate and needing 20-25% down?

Closing seems low. usually Ive ran into 6% for closing price then doc fees. 

Low downpayment at a 5% interest rate seems rather hard to accomplish in this market unless your house hacking. 

20%-25% down is normal for investment properties. a lot of lenders won't let you do 30 year or fixed rates either so that's where you need to do a lot of shopping.

Hey Nathan I was but any properties I was interested in fell off before the sale

I'm out of town currently for work but would be interested in grabbing lunch sometime when I'm back..

Maybe May 6th?

Hey all I'm in Bartlesville as well. Id like to meet up if that's a possibility. Im about to start my first deal.

Hey Brad, 

Welcome to BP. Your mom was nice enough to be welcome me here. So it’s nice to try and return that favor. You have such a better outline than I do. So you’re way ahead of me already!! Let me know if I can help. I’m always running numbers and trying to find deals now! 

It’s crazy we are in the same industry from the same town and trying to invest the same way! 

1. What are the market rates? I’d guess you mean the average market rental rate.

Id say that rate is probably 550-750 not bills paid.

2. Is there an opportunity to sub-meter all of the utilities?

This I do not know, I know that electric comes into the building separately, gas comes in as 4 services, water is 1. How would I go about trying to figure out how to sub meter?

3. What are the fixed expenses (taxes, insurance, etc.)?

Taxes-1200$ a year

Insurance- 1200$ a year

flood insurance-1200$ a year

4. What's the local Cap Rate?

once again sorry but I’m so new I don’t know what to do for cap rate.

5. How much would you need to put in to completely stabilize this property? How long would this take?

I’d guess that most expense would be making it look better and setting up new management systems. The vacant places are ready to rent. The other 5 are being rented and fine. Property could use some paint on the outside.

The front biggest apartment which used to be a store front is unfinished. I’ve just been told that the owner has plans to fly back from California and make that a rentable space in the next 30 days. I’ve also been told that he has a collapsed sewer pipe from the building that is being fixed immediately. This place is downtown with great walkability. I’ll say that all the units are either efficiency or 1 bedroom units and not very large.

He’s been running rent at 550$ for efficiency all bills paid.

Then the 1 bedrooms 650$ for all bills paid.

He also offers free satellite tv to his tenants that cost him 120$ a month for the whole complex along with free washer and dryer.

Which that’s stationed off the utilities of the unfinished apartment so I can see that the washer and dryer in bill usage alone cost him 1256$ last year.

So really let’s say I’d be happy to set aside 10k for oh no stuff but everything should be ready to go.