All Forum Posts by: Tom Arnold

Thanks for all the replies!  As a newer investor, I am interested in long-term cash flow.  @Anthony Wick I agree with your theory on using current rental rates and utilities and not projecting on potential higher cash flows.  Also each unit has separate water & electric meters.  Garbage is included in taxes.  

@Joe P. the major expenses are taxes, property insurance, capX, and ground maintenance.  These would also be self-maintained. 

$270,000 with $67,000 downpayment and $9000 closing cost

•  Income: $2350 per month
• Expenses
  • Mortgage: $202,500 @ 4.875% will be 1,071
  • Taxes: $3218/year or 268.16 per month
  • Insurance: $166 per month
  • Flood insurance:  outside flood zone
  • Property Management: self managed
  • CapX: (10% of gross rent) at $235/ month
  • Maintenance: (10% of gross rent) at $235/month
  • Vacancy: (5% of gross rent) $117.50
  • Property doesn't have common amenities.

Other than the roof (not leaking, just 12 years old) everything is in good shape (A/C, appliances, updated electrical, etc.)  If rents were to be increased, painting the exterior was also included in the $10,000 exterior cost.  

Simple cash flow is $257.34/month and 4.03% cash on cash return.  Just seems too little for the amount of cash outlay.  My thoughts are to let it pass, as the return isn't there. 

Hey all,

I have been looking at this 4 unit.  The property is located on the space coast of Florida and in a growing beachside community.  The property consist of 2 efficiencies and 2 one bedroom/one baths.  Current rents are $550/month for efficiencies and $600/month & $650/month for one bedrooms (all utilities are paid by tenant).  This is an off market property, where the owner is wanting $300,000.  My thoughts are the property isn't worth more than $270,000. 

All units are mostly undated inside with newer A/C, flooring, kitchens, and overall clean inside.  The exterior will need cleaning up, mowed, and painted.  A roof in the near possibility ($10,000 total).  

Rents could be increased to $600 for efficiencies and $700-$725 for one bedrooms.  

Current cap rate at $270,000 is 5.9%.  I would be financing 75% of value.  Would you pursue with the purchase?  Let me know if you need more info!

Thank you!

@Blaine Watson I am pretty focused on my area in Brevard County, with talking about inventory.  Our rental prices have driven prices up, so most sellers will sell for the right price, at which the numbers don't work.   With that we might have 3-4 larger 16+ unit complexes available.  

This is a great post! @Blaine Watson I'm Central Florida and  in a similar situation.  My end goal is owning multiple multi-family (20+ units complexes) and having monthly cashflow.  The last 2 years I have been living cheap and saving as much as possible.  With our high prices and lack of inventory, I'm not sure if I should start with smaller 4-6 units, which are more attainable or continue storing money away for a large downpayment on larger size (12-20 unit) multi-family.