All Forum Posts by: AJ Felix

@Simon W.@Daniel Hyman Thanks for both replies. I considered having a CPA do it for me but did not know what is the more common best way to go. I would be willing to pay for it as long as it's within reasonable cost. I also would not mind doing it myself as long as its a user friendly easy to view and understand software. If I can get a monthly print out with easy to read details for my review would be real nice. 

Once rental income is deposited in my bank account I want to be able to know exactly how much money is allocated to the various expenses necessary for managing the property such as vacancy, cap ex, maintenance, utilities, etc. Any suggestions on great software that is user friendly and excellent at keeping track of these expenses over time and for multiple properties? I am not Excel savvy and dread even thinking about trying to use that program, not an option for me. 

@Jason Braud Yes all utilities metered to individual units. Also, all units were recently renovated. Only thing is it needs a roof. current roof is ~15 years old. Other than that expenses have been readjusted after yall's advice. Still looks like it works. Just learned that a similar 4-plex sold for same price recently and in relatively poorer condition than this 4 plex, which is in better condition and priced the same. Thanks ladies and gentleman.

@Amy Verges I PM'd you.

@Rory Compton being new to investing I am experiencing the "analysis paralysis". This deal is at market value but yet still cash-flowing nicely according to my criteria. I thought you have to buy properties at discount in order to make money. Like the saying goes, "you make your money when you buy". This is also like the 3rd deal that I am looking at as a first time investor and I kept hearing you have to make 100's of offers before you can get a deal. I have yet to make an offer on this one but things seem optimistic, even after speaking with the owner. 

@Rory Compton calculating the IRR the standard way using the initial investment and present value of future cashflows over 10 year period to get NPV of 0. Also, good point let me redo the calculations with capex. I also will add some cushion for more safety in some expenses:

Purchase Price $205,000 asking and current market value

Closing Costs ~$7,000

20% Down Payment $41,000

Total Cash Needed $48,000

Financed Amount $157,000

Mortgage Mo $772.35

Property Taxes Mo $208

Property Ins Mo $208

Lawn Care Mo $120

Management Mo $312

Vacancy Mo $78

Maintenance Mo $208

Capital Expenditure Mo $208

Total Monthly $2,114.35

Monthly Rent $2,600

Monthly Cash Flow $485.65

Analyzing a deal right now and wanted to get some input. The numbers are estimated to be accurate. This is a 4-plex that I am quite interested in in South Baton Rouge, LA. Anything that seems to be missing? Just keep checking and triple checking because cashflow seems pretty high. Property reported to be in good shape and fully occupied. All units renovated within the last 3 years. Just needs a new roof. Estimated to cost $5,000-$6,000. 

Purchase Price $205,000 asking and current market value

Closing Costs ~$7,000

20% Down Payment $41,000

Total Cash Needed $48,000

Financed Amount $157,000

Mortgage Mo $772.35

Property Taxes Mo $208

Property Ins Mo $208

Lawn Care Mo $87.50

Management Mo $260

Vacancy Mo $78

Maintenance Mo $167

Total Monthly $1,780.85

Monthly Rent $2,600

Monthly Cash Flow $819.15

Cap Rate 9.3%

IRR 20.74% (this is the return on your initial investment)

Anyone mind sharing some reliable investor friendly general contractors in the Baton Rouge region that you had good experiences with? In the process of trying to build a team and thought it would be worth also exploring BP in addition to the individuals I have spoken with already for some contractor referrals. Looking for GC with single family and small multifamily renovation experience. 

Curious, what is driving the home value decrease in the 70802 area? 

@Mark-Anthony Villaflor will you explain the rv ratio to me and what it means?