All Forum Posts by: Andrew Dillard

Thanks @Chris Dawson.  My first go to was CACU, who I have my personal mortgage with and had an overall great experience with.  I'll check out the other two that you mentioned.  Thanks for the tip!

I found a great 4-plex that is fully rented for $1,900 total each month in Kansas City. I want to make an offer on this property. I am frustrated with the bank process and lending requirements. The building is great, recently rehabbed and is completely turn key. This would be my first investment property and it is frustrating that the bank won't consider the income on the property unless I get an FHA loan and use one of the units as my primary residence (which I don't want to do) I have a great home already, I am just trying to get into REI.

What are some of  your experiences in working with banks in getting your first investment property mortgage?

@Upen Patel Thank you so much!  Much appreciated!

@Upen Patel I did pull the tax and land records from the county site.  The property class (PCA Code) is Multi-Family Improved (Code:1011) and the Land use type is Duplex (code: 1120).

I've done some poking around to determine the implications of each of these codes, but I am falling short.  Have you ever experienced these before?

Hello all.  I am looking at purchasing a single lot that has two separate duplex buildings on the lot for a total of 4 units.

I talked with my mortgage lender about this and he said the only way to do this is to split the lot into two lots and each lot (duplex) would have its own loan.  He said Fannie Mae will not lend on two properties on the same loan.  Is this correct?  Can anybody point to the exact rule?

Thanks in advance

I've looked at some of these homes on the list and unfortunately even if bought for a dollar, some of them need $60,000 in repairs alone with push them right up to the average sales price for the area they are in.  It's sad. The city would be better off just demolishing some of these and selling the land.

https://goo.gl/maps/vmPnTKc1xzF2

@Ian Walsh.  It's tough to find a comp that close to this property.  There are two separate duplex buildings on the same lot.  The closest quads are going for $102,000, $165,000 and $225,000.

@Brian Battee  I had the same though process.  I asked my realtor to look into it and this is what I got back.

The owner of the property purchased this originally from a bank for ~$30,000. They essentially flipped all 4 units and are now selling for more.

Additionally the owner lives out of state and is tired of trying to manage an out of state property.

@Edward B. Appreciate all the help! I'm definitely going to look at that CapEx sheet. I do have property taxes included in my analytics tool, I just forgot to write them in here. But they are being included, I'd never forget about Uncle Sam...

I have my real estate agent looking into this further, but I am planning on touring the property shortly.

Hey @Jay Dewberry.  $109,900 is the price for both duplexes (4 units) The gross rent is for all for units, $600 per month per unit.

I did updated my numbers based off of what @Edward B.'s suggestions. Numbers are still favorable in my (limited) experience.

New Expenses:

Vacancy (10%): $240 per month

CapEx (8%): $192 per month. I went 8% because most of the major systems have been recently replaced

Management (10%): $240 per month.  Still planning on managing myself but could just consider this as wages?

Repairs (8%): $192 per month

Insurance: $175 per month

Mortgage: $475 per month

Total Expenses: $1,642 per month

Monthly Cashflow: $757.07

NOI: $14,794

CoC Return: 117.30%