All Forum Posts by: Thomas Handy

Unless it's a modern home, you can do fine with a standard white refrigerator.  This is only a rental unless it's a very nice house you're looking at.  Most of the duplexes and fourplezes in EP look fairly old.  So I doubt you'll get the best tenants, save your money and just get an ordinary refrigerator. 

check out Raul with RL roofing.  His number is 9157275406.

The key part is deciding your goals.  So what are your goals with real estate?

You should look in to a multiplex, live in one and rent the others out.  If I could start all over again that's what I would do. 

I'm an investor. 

I am talking to the broker who listed the 8 unit apartment and the seller is open to owner financing. The seller listed three properties, a 8 room ($382,000), 12 room ($565,000 and 16 room apartment ($795,000) complexes. I am putting in a letter of intent for the 8 room apartment.

This is my first offer on a commercial property, since I have only done SFH so I could be missing something in my analysis.

Since I don't have a lot for the down payment, I was planning to offer $20,000 down with a 30 year loan amortization at 6% interest. This comes out to $2170.37 for the seller.

The apartment was built in 1962 and in a B- part of town.

The cap rate is 8.5%

All rooms are occupied with a gross scheduled income of $49,077.

Operating expenses are $16,613.

Net operating income is $32,464.

INCOME SUMMARY

8 units income $49,680

Laundry $1980

TOTAL $51,660

EXPENSE SUMMARY

Property Tax $4262

Insurance $2807

Water $3700

Trash $1080

Management Fee (3%) $1472

Common lights area $500

Repairs and Maintenance $2792

TOTAL $16,613

NET OPERATING INCOME $32,464

What are your thoughts?

Please delete 

Nazz,
Thx! Let me check on that.

Tom

Hi Eric,

I plan to look at the other side before bidding on it but I was able to look through the windows of the property to check out the condition.  

Thx for the input!

I am planning to bid on a 2 bd/1 ba approx 600 sq ft ea side of the duplex that is in the process of foreclosure (possibly preforclosure).  Property is in lower middle class area of town and property will average $700 each side.

Starting bid $67,000 (no bids so far).  5 day auction.

Property will need stove, refrigerator, hot water heater, pipes for shower, and about 1 foot ceiling repair. Floor tile was in pretty good shape.  Wasn't able to check other half of duplex but repairs will be similar. Plan to follow up this week and have a contractor take a look. 

Will either wholesale the property to an investor or fix it up to rent out.  Just not sure at this point. 

Repairs -approx $10,000

Taxes -approx $170 month

Insurance -approx $110 month

Management fees - $0 (will self manage property which will be a first since it's close to where I live).

Question - are some lenders providing loans to owners with more than 5 properties?