All Forum Posts by: Michael Moussa

Tenant just messaged me a picture of the oven door and it’s shattered. With the message reads “this just shattered by itself out of nowhere”

I’m in Pa, and the lease says all appliances are taken in as is condition. She has been living at the house for about 2 years now. Very dishonest track record.

How would you guys approach??

@Evan Polaski @Todd Dexheimer @Greg Dickerson

Wow. First off, thank you all so much for the responses. I really thought I was just shooting in the dark with my question but This BiggerPockets thing is amazing! Here is my breakdown for year income and expenses:

Purchase price: 420k, I am the buyer real estate agent as well so I get a kick back of 9800 at closing. (I feel like some people add that in the analysis and some say it’s completely different, so just wanted to throw that out there!

My cash invested without the kickback is 84,000 plus closing. I didn’t get the hud sheet yet but will guess closing takes it to 92k out of my pocket.

Total Cash invested with my kickback is 82k.

Gross income: 55,800

Taxes: 5040

Insurance: 2400

Mortgage: 26400, term 15 years

Total fixed yearly payments: 34,740

Water bill: 2000

Maintenance/garbage removal: 4000

True net: 15,060

I forgot about garbage removal in my first post which is why the true net number is different. I manage the property and do all maintenance. The home is 100 percent redone from top down. Brand new windows, roof, kitchens, bathrooms, water heaters in all units except one which could use a 2-3k pick me up. The units are small (average sq ft is 760) and there is no room for an increase in rent. The rents now I feel are even above market value.

Everything I bought to this point I’ve been so confident in. This is my largest purchase and have been having 2nd thoughts for a few weeks now, mainly because I feel I could have snagged better deals in the area, (single family row I can snag for 80-90k and net 8-9k from it...and I just don’t see an appreciation on this building for a long time. I’m hoping for some insight and guidance to either ease the nerves or someone tell me get out of the deal. I can do this and will only lose the 1800 dollar appraisal cost.

Looking forward to reading your feedbacks!

Thank you all so much again!

@John Archer thank you John! The 30 year commercial would have been nice because then I would Be netting 30k a year instead of 16..the 4 percent net cap does stink but the 80-85k a unit is just what they are going for in my area.. I am real estate licensed and check the sales on mls daily..I just can’t help but feel uneasy because 4-5 years ago, I could have bought 2 of these for the same price... just hoping the uptick in prices continues I guess 😔

@Bjorn Ahlblad I see, thank you for the advice! Luckily I do everything myself electric plumbing roof all that stuff.. I am my own handy man so labor costs are virtually just my time which I don’t mind putting in...

@Bjorn Ahlblad

Thank you for the reply! Oh boy rookie comment here... what is mtce and capex? I did factor a 5 percent vacancy... but not sure what those other 2 are 😂

Hello all, new here. Little background... Im under agreement for a 5 unit building for 420k. The building will net after all expenses 16k per year. Did I overpay for this? I think I’m panicking because I currently have 12 single family units that net an average of 6800 (30 year loans on most) a year, and also only cost me an average price of 45k each(they are all worth close to triple now, I got in at a crazy time and renovated all of them.)But each unit on this purchase only nets 3200 a year(the Loan is for 15 years, not 30 so payments are much higher). The prices in my area just continued to rise and rise and I kept passing on deals because I was thinking prices would drop. So I just bought it because The way I saw it, the lost rent while waiting for a good deal will prob equal it out anyway. For all I know now, It may be 10 years before I can ever sell this building for 420 again(just guessing). It is top down remodeled and no work will add any value...I never have any intention of selling anyway ... just refinancing down the road sometime...am I going to be okay basing on cash flow alone like this? Am I overlooking anything? Am I just panicking for nothing and being a baby since it’s my largest career purchase? Someone helpppp!