All Forum Posts by: Will Morehead

1. I'm hoping someone is willing to share the expenses they underwrite from a duplex. I know property taxes will vary, but was curious as to what I should be underwriting for these duplex's that I'm looking at currently.

The price range is $200k to $300k and I'm actively looking currently.

Any examples or screenshots of how people have underwritten previously would be greatly appreciated!

2. Also, want to see if anyone has good ideas in regards to leases, I'm planning to rent out the other side, but really have no idea where to begin in getting a residential lease drafted to my liking / executed.

Any input would be appreciated on either item!

Thanks!

0 Votes

Awesome thanks for the help everyone! I'll confirm with the lender that I'll be good with a notice of non-renewal within 60 days of closing and explore if there are any 5% down options out there as well.

1 Vote

Saint Louis, Missouri

Hello -

I've identified a duplex that I'm planning to make a move on (my first one) however, the property is fully occupied with one of the leases expiring in 2 months. I was planning for an FHA loan, but I've heard that they're pretty stringent on the property being your primary residence from day 1.

Has anyone ever run into this issue / I'm curious if there are any workarounds that don't require the 10% down minimum with conventional financing.

Any ideas would be appreciated!

1 Vote

Saint Louis, Missouri

Quote from @Nathan Murith:

Hi @Will Morehead, congratulations on doing the work!

We invest in STL and are always happy to share what we know and help others. Please do not hesitate to DM me if you want to discuss in more detail.

We conservatively go with these numbers for utilities: $40/month water, $30/month trash, $100/month sewer, $50/month lawn care (which it seems like you may be doing yourself). This are of course numbers we use assuming we rent our both units in the duplex, I.e. not househack like you are trying to do. Property taxes we call the county assessor's office to get the true number. we like to use 5% of rent for reserves for cap ex (big stuff like roof), and 5% of rent for repairs.

it all depends on your goals, but if you look at your numbers above, you can either look at this and say you investment property is losing you $218/month, or you can look at it that living and your rent is only $218/month. I am not sure where one could live for $218/month :-

please reach out, happy to share other tools, tips, tricks, info we have if interested!

Nathan, thanks for the intel that's super helpful. Quick follow-up questions...On your properties is electricity typically paid directly if separately metered? Also, do you typically access utilities via a fee on top of rent or do you bake that into the rental rate so it's all-inclusive?

0 Votes

Saint Louis, Missouri

Thanks to everyone above for the insight I wanted to make sure I was in the ballpark and you guys really helped me hone in! Plus the encouragement was great to hear as well!

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Saint Louis, Missouri

Hi All -

I'm looking into getting my first investment property (a duplex in St. Louis, MO that I'm going to live on one side), I'm struggling to have deals pencil and I want to make sure it's not my expense load causing the issue. I've attached a photo of what I currently have listed, certain revenue or expenses I'm missing would be awesome!

Thanks for the help and love all the content on here already!

1 Vote

Saint Louis, Missouri

All Forum Posts by: Will Morehead

Will Morehead has started 3 posts and replied 6 times.

Post: Duplex Expense Underwriting & Checklist

Post: FHA Lending (Duplex), but Tenant in Place for 2 more month

Post: FHA Lending (Duplex), but Tenant in Place for 2 more month

Post: 1st Time Duplex Investor - Expense Load

Post: 1st Time Duplex Investor - Expense Load

Post: 1st Time Duplex Investor - Expense Load