All Forum Posts by: Ashley Zhang

Quote from @Mike Smith:

@Ashley Zhang Like @Mike Wood I'm not familiar with building costs in your area, so I'll take your word for that.

If you are 850k into a triplex that rents for $5400 per month, it's a horrible investment. On single family or duplex/triplex you should assume a 50% expense ratio. Your cap rate is $5400 x 12 = $64,800 Gross Revenue less $32,400 for expenses. NOI (net operating income) of $32,400 / $850,000 = 3.8% cap rate

IMHO, you were sunk when you mentioned $200 SF build costs and rents for a 3/2 around $1800.  That just won't work in any world.  It's a bad investment if someone gave you the land.  If the land is 0, your cap rate is $32,400 / $750,000 = 4.3%

You can buy finished properties at 4.3% cap and not go through the hassle of a build.

Quote from @Kathleen Osborne:

@ Ashley 

@Ashley Zhang I ran the numbers on the whole triplex prior to purchase using the under market rents it was already bringing in. It was barely breaking even to pay mortgage, water, trash, insurance and taxes. When the first renters moved out, I looked at what 2 bed/1 bath was getting on Furnished Finder for my zip code. The first four months of rent will cover my brand new furniture. Months 5 - 9 will cover my new appliances. So after the first 9 months, I'll be whole on the upgrades. By that time I will be converting the other two units to Furnished rentals.

My first SFH I bought outright for $38,000. I charged $600/month rent on that one but it was long term and not furnished. This is my very first furnished rental and I'm learning as I go.

how do you underwrite the furnished rentals. for example, if you purchased a house 350k, how much do you have to rent it for? and how did you factor the cost of furniture into your calculation? thank you!

Quote from @Kathleen Osborne:

My first travel nurse moves into one of the units at my triplex tomorrow. I listed on Furnish Finder ($99/year/property). I had 5 solid leads within 2 days. Well worth the money.

If you go this route, I suggest buying the best mattresses you can afford. That is the biggest complaint I've head on a couple of travel nurse Facebook groups I belong to. Some of the reviews for properties on Furnished Finder also complained about mattresses.

I'm hoping to turn my other 2 units into furnished rentals when the current leases are up.

Give it a go!

@Ashley 

@Ashley Zhang We sold what we had to some one that contacted us out of the blue. So the best way to contact owners is the way that gets you a response. We had a small complex but loved it. I am looking to get into RV storage and or a mobile home park. Always looking to connect with other like minded people so feel free to reach out.