All Forum Posts by: Timothy Aughinbaugh

Im not big on leveraging. If your income does not necessitate you needing more income from rentals then paying them off is the smart move. I will get flogged for saying it but debt free let's you sleep well at night.

@mike cumbie we thought about leveraging just not there yet. We have a little under 2 million in our rentals and looking to purchase a few more. Thanks for the feedback

purchase price and improvements were $435,000. CC return is 13.98%

We paid cash

I forgot to mention, the roof is 2 years old.  We also cleaned up the trees in the front and back of the property.  We are calling our new small apartments "Upper Room Commons". We are really trying to upgrade the housing in Grandview and doing our best to set a new "standard" for rental property.  We have not had vacancy in 3 years! We currently self manage all 17 of our properties.  We paid cash for them and are realizing cash flow of approximately 15K per month.  Our goal is to buy 3 more properties next year and get our cash flow to 20K per month.  At this point we will evaluate where we are and the time that we have invested weekly in our rentals and figure out if we want to go bigger or stay small.  

I recently purchased 2 fourplex properties and undertook a massive renovation. This was biggest purchase in the history of my company.  All the properties have new tile, bathrooms, kitchens, SS appliances, granite, redone floors, new paint inside and out, windows, new water heaters and HVAC systems in each unit.  We rebuilt fence partitions, installed new LED lighting, new sidewalks and gutters and installed a community firepit.  Overall the project took 2 months and cost 140K for the rehab and 295K for the purchase. I am interested in knowing what YOU think of the deal.  It is located in Grandview MO and will be the nicest fourplex units in South KC and Grandview. It should provide maintenance free cash flow for years to come because everything is new.  Here are the numbers:

Purchase: $295K        2 4 plex buildings

Rehab: $140K

Total: $435K

Rent: $795 per unit x 8= $6360 per month $76,320 per year

Taxes: $4100 per unit for both building

Insurance: $4200 per year

Water/sewer/capex/vacancy: $600 per month tenants pay utilities

Total expense= $15,500

Total net: $60,820

Ruskin is a war zone....... Run......don't walk 

Brian. I just bought it. I am not selling it!

yes it was. He was horrible to work with. Glad to close on it though. My guys are working in it now. Should be done end of January. Im in Ecuador until Jan 10. After that I'll contact you.