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All Forum Posts by: Tracy Phillips

Tracy Phillips has started 1 posts and replied 4 times.

Originally posted by @Steve Vaughan:

Unless it's in a war zone, the numbers look good to me.  I think you could do better with insurance.  Shop that premium.  Wish I could grab a quad with $2800/mo income for $180k in my area.  I try to shoot for about 92% of asking price on property like this, as there isn't owner attachment like with homes. Good luck @Tracy Phillips !

 Thanks Steve!  I have a friend that would take good care of me for insurance.  Great advice on my offer prep!

Originally posted by @Jeff McCaskey:

@Tracy Phillips 

Were you going to form an LLC to operate rentals?

Seems like the cash flow would be there.

What is the condition/age of HVAC equip??

Do you have an application and lease made up yet?

You should run all rental business through a separate checking account as well.

Condition/age of water heaters??

Have you checked those utility figures against the records from the utility companies?? (You can call and get figures from them to double check sellers info)

Just some things that came to mind......

I wanted to form an LLC but the lenders will only lend with me personally. I think I can go back after I purchase and move deed to an LLC?? Does an LLC need to be more than one investor? That is the biggest thing that I'm actually trying to figure out and struggling with. 3 of the 4 HVAC equip are new within the last 14 months. No app and lease as I was going to use local prop management that already handle the other 3 buildings like mine. Yes, on the separate checking account (good advice). Water heaters are also new in 3 of 4 units. I did get an owners financial statement and everything checks out. Appreciate your help and advice on this. THANKS!

Originally posted by @Scott Weaner:

Do you have the mortgage figured in to your expenses? I don't see it there.

 I forgot to list but it is in those operating expenses ($700/month).  Thanks!

I'm about to make an offer on an investment property and making sure this is an attractive investment.  Property is a 2 story 4 unit apartment building near a college campus.  Asking price of 180K and is fully rented ($700/month avg or $2800 total).  I got my approval letter to purchase with 25% down (4.375%/30yr fix).  Building has new roof, new windows and a new staircase.  3 of the 4 units completely renovated from head to toe (everything, even the receptacles and switches).  I don't know everything about the 4th unit but it rents about 50-75$ cheaper than the renovated units.  Yearly expenses stated are water/1800, trash/360, area light/240, lawn care/900, dumpster/156, Insurance/1920, taxes/1536 for a total of $6912.  Management company 8% - 2688/yr, New/renew lease fees (2 new/ 2 rew) = 900,  Maintenance at 25/hr is a wildcard so I used 48hrs a year for 1200.  Loan @$700/month.  Total operating expenses = $20,700 - Total rents = $33600 for cash flow of $12,900/year.  Am I missing anything to consider?  Any advice is appreciated.  I can't think of anything else.