All Forum Posts by: Uwe S.

Me three times and it was successful without any problems.

-Uwe

Hello Karen,
my definition of CRE is sweeping.
Hotels/Motels, Gas Stations, Office Buildings, Retail Buildings, Mixed Use properties with one store frontcan be CRE, Parking Facilities, Hospitals, MFH's, Industrial properties, land defined as commercial by town, Automotive, Restaurants, Day Care, Self Storage and many more.

As PM I would purchase an Apartment Complex +25 or if possible an Office building.

-Uwe

One note:
You can only @ all the posters of the topic or your colleagues, if you want to @ someone from BP and he is not a colleague of you or a poster in this topic it will not work.

-Uwe

Hello Gail and welcome to our BP world.

Is property size more than four units? If so you can try it here. They located downtown Cleveland but they cover entire town.

-Uwe

If you type in Google "AFX title" you will find an internet based company. They offer for 100 bucks detailed title search.
I took these guys for my DD in the past and there was no problems.

-Uwe

Shema,
I don't understand why you opened two topics with same content and questions?
That's the other topic.

-Uwe

My 2cents Trevor.

$18,000 expenses per year is not real. It can be at this year but not steady. You should calculate min 50% of your rental income for expenses on long time holds, older houses and you must increase these expenses. So at $75,000 income gross you will net $37,500 like Glenn Espinosa said. With assumed CAP rate of 10% purchase price will be $375k not more!
There so many expenses you will find its not $18k!
If you improve units you need more money and this should lower the purchase price.

No deal for me.

-Uwe

No problem Shema.

If you want owner occupied then you should pay the rent for your unit. So you will receive $1,120 per month with lowest scenario.
How old is the duplex? I take some pessimistic calculatations.

At first overview I want 10% CAP for any investment and calculate the propertie with simple 50% (expenses) rule.
So $1,120 monthly - 50% = $560 x 12 months = $6,720 NOI yearly and at 10% CAP rate purchase price should not exceed $67,200.
With your purchase and rehab price of only $47,000 it makes a very good deal.

Should be the propertie older than 25 years I use 55% expenses and for older than 40 years 60% expenses.
Its maybe not correct in first years but over long time hold you will see an adjustment and if you calculate pessimistic you will be tickled if you earn much more money.

-Uwe

Should be an duplex Rob K.

So estimated $560 NOI per month with 50% rule = $6,720 per year with 10% CAP purchase price not more than $67,200.
Purchase price include rehab $47,000, thats an very good deal.

But how Shema Turner comes to an $450 monthly mortgage? If I take the full sum of $47k with 6.5% and 25 years my result is $317 per month.

-Uwe

Dan, very good deal in my mind. The investments in your area is not in value of the properties but in cashflow.

JW Franz,
like Ray Orellano told you about the CAP rate I agree. My personally minimum CAP rate is 10% but someone can live with 6% and another want 15%.
In CO the CAP rates can be lower than 10% so its up to you what you want and where to invest.

-Uwe