All Forum Posts by: Jason Fiet

So Bill, yes I agree, the fact that the taxes "include" water and sewer are strange to me. I have confirmed this over the last few months in this area. The rate for this 2 family home is 3K per year. The house around the corner could be 5K, or $4800 very sporadic throughout the city. Couldn't get in the basement at first look, but in decent shape, Newer roof, has renters in it as we speak. Looking to get a second look this week.

As far as deferred maintenance, I'm allocating 10% right off the top.

Thanks for your input!

BP gang,

So, we haven't been able to secure a flip but have seen some OK rental deals. I'm currently looking at a 2 family in a decent part of the neighborhood in Amsterdam NY.

I see the breakdown like this:

55K purchase price

Taxes, Ins. Mort. , 90% Occ rate, -10% for repairs = approx $11,160 in annual expenses

2 tenants $650 +750= $1400 mo / $16800 annual income for a difference of +$5640

Water, sewer, garbage all included in taxes.

Renters pay utilities.

As I understand the "cap rate" NAI/PP(-mort) = 0.11

Considering overall property conditions, inspections etc. the numbers seem to work , right?

Thanks for your info in advance!

Jason

BP gang,

So, we haven't been able to secure a flip but have seen some OK rental deals. I'm currently looking at a 2 family in a decent part of the neighborhood in Amsterdam NY. 

I see the breakdown like this:

55K purchase price

Taxes, Ins. Mort. , 90% Occ rate, -10% for repairs = approx $11,160 in annual expenses

2 tenants $650 +750= $1400 mo /  $16800 annual income for a difference of +$5640

Water, sewer, garbage all included in taxes.

Renters pay utilities.

As I understand the "cap rate" NAI/PP(-mort) = 0.11

Considering overall property conditions, inspections etc. the numbers seem to work , right?

Thanks for your info in advance!

Jason

Great information. Thanks for posting. Auction.com has been seemingly picking up business in our area. Looking to place a bid this week!

Wayne, thanks for the post. We did wait out the OO period, I guess the biggest struggle was trying to negotiate a contract with NO communication from the other side. The agent finally got back to me after many attempts and notified me the properry is now under contract to another investor for $

1,100 over asking price.And Will, we're on to the next one!

Hello everyone,

We have found a property we think is ripe for our investment. It is a Fannie Mae Foreclosure with an asking price that is only a bit higher than we want to have to afford. Over the last two weeks we have put in 3 offers! first offer was about 73% of asking price all cash, they countered we went up to about 83% of asking price. While that offer was in, the price came down on the MLS thus making our offer about 89.8% and a couple of days later we were rejected! No comments from the agent, no reasoning as to if it is a contractual issue or a price issue, just "rejected".

So we went to just under our max for this property which is about 92% of asking price( only a few grand more) and once again "rejected". No comment from anyone.

Are we wasting our time? Do they really want to sell to a 1st time home-buyer and hold a scrappy little mortgage under 100K for the next 30 yrs instead of taking cash right now? Should the listing agent be more helpful or informed than she appears to be?

The amount of paperwork that goes into this kind of purchase is kind of ridiculous, I hate to do it a 4th time even at 95% of asking (our max offer price) to see it just get kicked back with no explanation.

Any suggestions?