All Forum Posts by: Aaron Thivierge

Interesting post, and I am also curious about others opinion. A realtor I was speaking with last night told me I should have 1 LLC for EACH rental property. He said it was via Clark Howards recommendation. What do you all think? Sorry, not adding much to the answers to your question as I am wondering the same.

...wow, those pictures don't lie...unbelievable. Is the contractor licensed and insured? Please update this thread with how this story ends...  Great post above by @J Scott

I wanted to say hello and welcome to the site.  Also, really cool background you shared with us.  Best wishes in your RE pursuits!

Justin R. , Craig Barnthouse, Azeez K. , Maxwell Lee : thank you all for your reply. I am having a conversation with the owner tomorrow. I will follow up with more details at that time.

I met with a realtor tonight about the area and specifically the property, and many of your concerns were validated. The area is more C- (optimistically).

I can not get feet on the ground and drive the streets until Tuesday.  Ill know more by seeing it personally. 
I wanted to run my numbers by you all 1st. If they made sense, dig deeper. 
Thanks again.  I am learning every day, both from BP and locals here in Jacksonville. 

Jessica, Just wanted to say hello and welcome. If you haven't seen the iTunes podcast for biggerpockets, its a MUST CHECK IT OUT: it's free and TONS of knowledge. Again, welcome!  My wife and i used to live in Brookhaven, Atlanta.  Hope to see you around the site. 
Aaron 

David Clay , your words are true about assessing the neighborhood. This is one of the three areas that I am struggling with objectively qualifying vs. subjective interpretation. The other two ambiguities for me regarding REI are 1.) ARV assessment and 2.) repair cost.
I know if I get either of 1 or 2 wrong, the ship has sunk before leaving port.  

Frank, thanks for commenting. On the market about 30 days.  All 4 units are currently occupied.

Thanks, Kyle for your input. Ok, so lets change those two numbers:

Repairs change from 5% to 25% (very conservative: worst case scenario): $4800
Property Management 10% (my time) $1920

Overall expenses $15, 290
Overall income    $ 19,200 
With these numbers, the property still cash flows $325/ month or $3910/ yr 

What do you think? 

Hi BP, I am still trying to acquire my 1st buy and hold. I found a quadplex (4 units at 2 bedroom/ 1 bath each) that is in a C+ neighborhood.  Here are the numbers.  What do you think?
Purchase price: $69,000

$17,000 out of pocket cost to buy includes 20% down and $3,200 in closing costs. 
Property tax: $1600/ yr
mortgage: $3250/ yr
Repairs: (5%) $960/ yr
Vacancy: (10%) $1920/ yr
Insurance: $1800/ yr
I'll be my own property manager
Currently rented at $400/ unit/ month = $1600/month

20% cash down, financing 80% at 4% interest amortization over 30 years. 
Annual expenses: $9425
Annual income: $19, 200

I would not "apologize" for making a business decision.  Yes, write a letter, but you have nothing to apologize for when mending that fence.