All Forum Posts by: Uwe S.

Hello Vikram,

I think I can help you, you received the property document package? If you, send it to my email. I make a calculation for you.
The calculation of the LTV of a MFH is a possible average CAP Rate of the Town or surrounding area. Here I can you help too.
Auction bidding experience only in Germany, but it´s nearly the same I think. Set a limit, thats the main, depending on the real value of the property.
At last, send me the package and I send you a complete calculation.

-Uwe

P.S.: Good Speed!!

Received just the informations, rent roll, sewer and trash bills and P&L of 2009 until August. The owner will pay the back taxes before closing, I´m happy now.
Average monthly gross is $2,954, minus tax $283 (owner paid the June tax), insurance $168, sewer/trash/management $257, effective maintenance was $84, other 172, thats a NOI of $1,988. He has no reserves arranged. I think $50 per door is okay. So my NOI were $1,588. Excellent.
I take action in a Forum for the surrounding area and got the answer, not a worst and not the best area.
I prepare now the offer for tomorrow.

-Uwe

Brian and Isham C. -

I will do my homework, I order the rentroll, utilities bills and the profit and loss of the last year, I wait now for it.
I´m not willing to pay $95k with $12k back taxes thats fact, I think $80k is enough :). The seller said I´m the only interested. Have to see what can be done.

-Uwe

Brian,

I understand completely your doubt. But no area is secure, in these times. Rhode Island as example, New Providence, two years ago glowing future. Today, collapse, very high rents, very high house prices, crowing unemployment, no one can sell his houses without a mighty loss. A three unit rented for $189k and $2,2k gross, thats money burning for the buyer, the same here in Germany with the house prices.
It´s gives risks in our world, thats normal. I have no problem with it.

-Uwe

Steve - you are right! The back taxes must be paid and the lien is forgotten. The lien is not sold, so no problem.

workerdrone - the owner ask for $95 not anymore. I call his pm and he inform me all the tenants are good renter. Some live 14 month in this house, the newest lives since May there. He said no problem for 6 month leases.

In Ohio is the same weather in common with Germany ;). I am used to this. The other side is the very long distance to Germany, so I need little bigger buildings. The best way is to find an apartment building with more than 12 units (managed by myself) and seller financing, but not for $500k and Ohio is one of the states, where I might find it.

-Uwe

workerdrone,

I look everyday to craigslist and backpage and I don´t find 8+ units for $100k-$150k in the south. I´m not interested in SFH, it must be 8+ units for a good cashflow.
I looking for a 10 CAP minimum, all other make no sense for me. The 100% financings in SW Ohio, were the best, but as foreigner the bank says no or 50% down. Thats to high for me.
This 8 unit in Cleveland sounds good and todays evening I know much more about the propertie.

Now a question: Why not Ohio?

-Uwe

MikeOH -

Thanks for your informations and the luck :) , the propertie is located on the Detroit Shoreway Border to Clark Fulton if you be familiar with this area so let me know please.
I know all the important things of commercial buildings, it´s the same here in Germany.
I can clear any city codes with the Buildings Department.
All the utilities pays the tenants, even common electric/water, trash/sewer pays the owner with $550 every three month. The gross monthly is $3k, the NOI (50% rule) is $1,5k, not bad.

The main problem is the area (I agree) and this tax lien. So I need a direct advice to handle this problem.

-Uwe

workerdrone,

Thanks for the advice, I was unable to contact any management yesterday, but Monday is this possible, I have the phone number from the property manager.
I take a screenshoot from the Auditor Site, under Flags you find a Y (yes?) by Cert. Pend. (certificate pending?), but by Cert. Sold is a N, confusing for me.

I agree with the month to month rents but I think we can negotiate this and I saw actual photos from the owner, the house is in good shape has new paint, new front doors, new windows, in StreetView from Google Earth is the House in bad condition.

-Uwe

Hello everybody,

Yesterday I found a property on craigslist Cleveland, a 8 unit (6 apt. and 2 store front) for only $95k. Building is rented out (month to month) and I can buy this house with my own money, but there is a snag.

Property has back taxes $12k and a pending tax lien, the owner will retire, he has more properties in Cleveland, but this is the only with back taxes.
The back taxes are not my problem, it´s the tax lien. I have no experience with. So please advice me, what should I do?

-Uwe

Marc,

No, you not blind :). But Rich ask for our special area and why.
Now you carried Indiana into play. This is what Rich has wanted.

-Uwe