All Forum Posts by: Tracy Phillips

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

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!

 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.