All Forum Posts by: William Ferris
William Ferris has started 1 posts and replied 3 times.
Quote from @Jaron Walling:
@William Ferris I grew up in Greentown and invest around Indy. You guys are crushing it on this property. Keep it in good condition, self manage, keep the tenants happy, and you'll be sitting good.
Do not cash-out anything in this property. That money is trapped in the investment. It's skin in the game. Do not over leverage this asset. That's foolish in this economic climate.
Our SFH rent for almost $1400 per month, but the cash-flow is way lower. It's an appreciation play with added lunch money strategy. Your tri-plex is a cash-flow strategy. Elwood is a small town with slower appreciation. Don't need to be brainiac to figure that out. Maximize that CF, hold a healthy reserves fund, and buy the next tri-plex for $90K! Cheers.
Hi Jaron,
Thanks for the insight! This was actually our initial strategy and I’m glad you think this is a good long term play. I would be very hesitant to take anything out right now in this climate.
Quote from @Jaycee Greene:
Quote from @William Ferris:
Hello everyone,
My name is Will Ferris and I have recently begun my real estate investing journey. With the goal like many to replace my income from my corporate job. I've listened to many podcast episodes and also read the rental property book by Brandon Turner. My wife and I closed on a tri plex in Elwood, IN. at the end of April. This is small town 16 miles from Noblesville, IN which is north of Indianapolis. The town is growing, albeit slowly. We are focusing on Madison county Indiana specifically. As it's not too far, we know the area, and my mom lives in Madison county.
I would love to know your thoughts on this deal. I would appreciate any feedback or suggestions from more seasoned investors. Am I on the right track with this one?
Triplex built in 1890. Foundation is in good shape. Roof 7 years old with no discernable damage on inspection. Property is not in bad shape but it is old. Two one bedroom units downstairs one two bedroom unit. Tenant occupied. Two long term tenants in the one bedrooms. Tenant in unit 2 moving.
Unit 1 = $450.00
Unit 2 = $550.00
Unit 3 = $500.00
Gross = $1,550.00
List price = $110,000.00
Purchase price = $105,000.00
Seller paid repairs on plumbing and electrical from inspection = $4,000
Seller credit = $2,200.00
Appraisal = $105,000.00
Down payment 25% = $26,250.00
Closing costs = $6,695.93
$30,500 to close with seller credit.
Mortgage @ 7.12% interest rate = $530.29
Taxes/Insurance = $279.00
Total Payment = $809.29
Water/Trash/Sewer = average $90 month
Lawncare = $120.00
We closed and fixed up unit 2 and now have that rented for $750 and the one bedrooms we raised rents by $50 each. The property now grosses $1850 per month. Probably a little bit under market rate on each unit but that's ok.
Currently have spent about $6,000 in repairs/appliances to update the property and redo unit 2.
Hey @William Ferris, welcome to the BP Forum! I love this deal. Looks like you're making a good amount of cash flow. One question, is Elwood considered "rural" for lending purposes? You might even be able to do a cash out refi to recoup nearly all of your downpayment.
Hi Jaycee,
Thanks for looking at my deal. I’m not sure. How could I check something like that?
Hello everyone,
My name is Will Ferris and I have recently begun my real estate investing journey. With the goal like many to replace my income from my corporate job. I've listened to many podcast episodes and also read the rental property book by Brandon Turner. My wife and I closed on a tri plex in Elwood, IN. at the end of April. This is small town 16 miles from Noblesville, IN which is north of Indianapolis. The town is growing, albeit slowly. We are focusing on Madison county Indiana specifically. As it's not too far, we know the area, and my mom lives in Madison county.
I would love to know your thoughts on this deal. I would appreciate any feedback or suggestions from more seasoned investors. Am I on the right track with this one?
Triplex built in 1890. Foundation is in good shape. Roof 7 years old with no discernable damage on inspection. Property is not in bad shape but it is old. Two one bedroom units downstairs one two bedroom unit. Tenant occupied. Two long term tenants in the one bedrooms. Tenant in unit 2 moving.
Unit 1 = $450.00
Unit 2 = $550.00
Unit 3 = $500.00
Gross = $1,550.00
List price = $110,000.00
Purchase price = $105,000.00
Seller paid repairs on plumbing and electrical from inspection = $4,000
Seller credit = $2,200.00
Appraisal = $105,000.00
Down payment 25% = $26,250.00
Closing costs = $6,695.93
$30,500 to close with seller credit.
Mortgage @ 7.12% interest rate = $530.29
Taxes/Insurance = $279.00
Total Payment = $809.29
Water/Trash/Sewer = average $90 month
Lawncare = $120.00
We closed and fixed up unit 2 and now have that rented for $750 and the one bedrooms we raised rents by $50 each. The property now grosses $1850 per month. Probably a little bit under market rate on each unit but that's ok.
Currently have spent about $6,000 in repairs/appliances to update the property and redo unit 2.