All Forum Posts by: Will Eagles

Hi,

Im looking to connect with new Flippers and Investors in Bucks and Montco in Pa. meet ups are great but looking to connect on a more professional level about opportunities.

Anthony please send me actuals if available. Im also interested in the current management of this property. Who is managing it?

I want to present a question that hopefully will not only help myself but countless others. Simply answer below what you have done in a short answer form how you have landed (key word) off market multi unit property. Please provide a sample of what that was. Maybe a letter you write. Phone script you use. Postcards you send. Meet ups you attend. Or networks that contain leads. Keep it simple yet key details. Thanks and let’s see how many effective REAL LIFE ways there are to get deals off market.

@Ray Lai I would love to receive your scripts as well. I am in the same boat as @t. hunter bullock. My email is Will.eagles @ gmail.com

@John Leavelle thanks. Yea I noticed that after I posted. I don't believe I would move forward on this. I wanted to take this as an opportunity to try and run my own numbers and see how those of you who are in the larger properties would run them. I have already started the process oflookong for lenders to start meeting with. So far I have a few meetings lined up.

@Jason Chen how do you get to those numbers. What are you looking for from a property?

@Mike Landry Thanks yea thats about what I came up with...even though my post was extremely long. So if this was to be a good deal it would need to purchased at 430k right?

@Jason Chen Hey sorry if you felt this was a waste of time I was more looking for someone to help me understand the breakdown and analysis. I realize it may not be a good deal but the point was to learn the process not be attacked. 

@Nick B. The breakdown given was insurance 4k repairs 2k water and electric for the owner of 4800. All other expenses paid by tenants. This obviously doesnt include debt service but I did that on my own. I really am looking to know if im breaking down the numbers right. even if the deal sucks. Practice makes perfect.

Ok so I have been doing a lot of research and im a bit confused by the process of purchasing a commercial apartment building. Here is the breakdown.

Price	$700,000	Cap Rate	11%
No. Units	10	Occupancy	100%
Building Size	10,435 SF	No. Stories	4
Price/Unit	$70,000	Year Built	1920
Property Type	Multifamily	Lot Size	5,419 SF

Description	No. Units	Avg. Mo. Rent
(4) Units at $900/mo each	4	$900
(3) Units at $700/mo each	3	$700
(2) Units at $800/mo each	2	$800
Unit at $600/mo	1	$600

Financial Summary (Actual)

Scheduled Gross Income	$94,800	Net Operating Income	$71,986
Operating Expenses	$22,814

So please let me know if im looking at this right. NOI 71,986 cap rate of 11% = Value of 654,419? This is NOI divided by cap rate for Value Now I havent done the research yet to see what buildings in the area are trading at but just using the numbers given. Cash on Cash based on a 600,000 purchase price with 20% down of 120,000. So loan of 480,000. Mortgage payment of 2600k a month based on 30yr 5% Expenses of 1900 a month Total of 4500 per month. 54k per year. Based on an NOI of 71,986 it comes out to .0124 so 1.2% right
Not a good deal. And if I look at the debt coverage numbers they come out like this.  NOI 71,986 Debt Service 30,912 Ratio of 2.3 This confuses me since the cash on cash doesnt work out but the ratio is good. Please explain.

IF i use the 50% rule

Income - 94,800

NOI - 47,400

Cap Rate of 11%

= Value of 430,909

Cash out of pocket of 86,182

Cash on Cash

P & I of 1850

Expenses 1900

Total expense of 3750 per month 45k a year

45k / 86k = .52 or 5.2%

Now this looks more like a good deal right?

Debt service ratio

NOI 47,400

Debt Service 22,200 DSCR = 2.13 This is extremely good right? Please let me know if I did these numbers right. I know its all over the place but I did both what they are offering about what the 50% rule would have me at.

@Tom Doherty I would love to talk more about this property. Im located just north of Philly. Let me know how we can connect. Thanks