All Forum Posts by: Antonio Esquivel

Hey Everyone,

I currently live in Omaha NE, and have two rentals with some equity and I'm wondering If I should keep them or sell them for something larger. What kind of cash flow are we seeing between 2 to 4 units for a B class property right now? Or, what kind of cash on cash returns are reasonable in this market right now? I would self manage if that helps at all.

Right now property "A" has about $60,000 worth of equity and cash flows about $500 a month. Property "B" has about $40,000 of equity and cash flows about $400 a month. Ideally I would like to sell both for larger properties if it makes sense. A lot of what I have been finding however would cash flow the same as what I have now, even though they are more units. Is Omaha multifamily overvalued?

Thanks in advance!

I personally would use savings and take out from 401k. The downside to refinancing your home is that your payment will probably go up and the only way it will go back down is by paying the loan down and refinancing or selling. 

How much would extra parking cost? From the pictures it looks like there isn't any room. How much are taxes and insurance a month? I estimated $900 each. How much would you put down? 10%? If so at a 4.5 interest rate your payment is about $370ish. For a 2 bedroom this would rent for about $700, probably with the parking situation. $600 during the winter. That's about $330-230 a month. 

That's really as low as it gets. If you do find a lower rate it wouldn't save that much money per month. If you are ok with the risk, ARM loans from Busey bank offers loans with a 5 or 7 year fixed rate somewhere around 3.5%. This was around June of last year I cant really remember. Not only that but these loans also don't require you to pay PMI which is a big expense when you put down less than 20%.

Are you looking for single family? Or multifamily?

Omaha has skyrocketed in prices since 2013. If you are out of state you wont make any money. 

Buying for 10 or 15 year amortization is really aggressive. I think it would be better to simply actually open a savings account and put money in every month. Inflation calls for more time than 10 or 15 years in my opinion. Your savings account wont make holes in your wall. The advantage of real estate is that you can leverage it.

To answer your question, simply say you are buying another home.

Verify if any of the accounts are past due, when the leases are up, what are the deposit that you will receive when buying. I know these are small details but sometime those are where people mess up.

What property class would you consider it?

I used to manage a 24 unit property with all wood floors in all units. I never had any one complain about it. This was a class C property though. Class B and A might have more to tell you. :)

The monthly dues take away too much equity in my opinion. Lets say you have a $1000 condo payment for principal, interest, taxes and insurance, plus now $200 a month for board dues totaling $1200. You could use that $200 added monthly payment into a house for $40-$50,000 more in buying power.

I'm in Omaha NE and the market is crazy hot right now. Homes are going under contract in one day everywhere. It's making it difficult to find deals but then again, our property is that much more valuable.