All Forum Posts by: Jarrett Finley

Do this regardless.....
If something gets missed during the winterizing and a pipe bursts this will help lessen the damage caused. Anytime a home is left vacant this is a good idea IMO.

I use the deposit only checking account. Easy all around....I only have 2 rentals though!

As far as the price I don't think $250k is possible. The asking price is $350k. I just ran these numbers with a conservite price reduction. If I were to make an offer I was thinking around $300k. What do you think?

I have yet to invest in any rentals but have be looking and learning over the last 4-5 months. I have found one 6 plex that looks promising and I would love to hear some feedback from some of the more experienced investors and landlords. This is what it looks like.

6plex
Sales Price $325,000
Loan Amount $260,000
Interest Rate 7.125%
Term in Years 30
Loan to Value 80.00%
P & I $1,751.67

(This loan is through an Alaska housing program for which both this property and I qualify for.)

Total Rental Income $57,600
Less Vacancy 10.00% -$5,760

Adjusted Gross Income $51,840

EXPENSES
Taxes $4,584
Insurance $2,580
Utilities including Refuse/Cable $9,661
Management $4,725
Maintenance & Repairs $1,000
Replacement Reserves $1,800
Miscellaneous $1,000

Total Expenses $25,350

Net Operating Income $26,490

Total P & I $21,020

Net Cash Flow $5,470 = $455 per month

I know that the cash flow doesn't look that great with the property management cost but it is required to be factored in for this program. I would be doing the management myself so the net cash flow should be around $850 a month. It seems like a fairly good deal to me or is it just the big down payment? Thanks for any help or insight you can give to this rookie!

Jarrett

My real estate experience is limited to owning my own personal home and a recreational cabin! This is my first serious look at investing in RE. I have been using the search feature quite a bit and have found some good reading. I will be posting some questions of my own shortly. Thanks.

Jarrett

Thanks for the welcome. This happens to be the only picture I have of the Dr. Suess house as we call it. I don't know much about it really. It is located north of the Mat-Su valley in an area know for folks who pretty much like to do their own thing.

Thanks again for a wonderful website. This is a great resource for those looking or already involved in REI.

Hello...my name is Jarrett, I found this site while scouring the web for REI information. What a find it was! Tons of great advice and experience being shared.

I'm currently looking at multi famliy 6-8 plexs in the Mat-Su valley area north of Anchorage. I'm new to REI and landlording so I've been trying to learn as much as possible before I buy. Alaska is wonderful and quite interesting. Its not uncommon to have a $300,000+ home built on a lot next to a Tyvek palace with junk all over the yard. You see a lot of strange do it yourself builders as well! The picture I attached was taken by a friend of mine from his airplane........enjoy.