All Forum Posts by: Rick Jones

Thank you everyone for your responses, I definitely appreciate it.

@Andrew
The property has been on the market for 200+ days so it seems possible that they might accept a lower price. Ideally I would not live next to my tenants but I am just starting out and would like to begin with multiple units. The VA loans stipulates owner occupied so I will grin and bear it for the first year then I can move out.

@Nathan
Correct! Rhode island taxes are murder. I would most likely inhabit the middle sized unit, (950), due to how much stuff I have. Even if it was not completely rent free it would a dramatic reduction compared to what i am currently paying in rent, $1300.

@Rich and Michael
I have a high paying Engineer job which does buffer unforeseen expenses but I do not plan on relying on that to make a less than good deal good. No personal issues would hold me back from purchasing this place. I am able to assume all of the risk. I am at a good place to start as the VA loan plus 3.75% mortgages makes purchasing property a no brainer.

@Jeff
That is a good idea to consider. I have never thought about that to help defray utility costs. I will have to look into this.

Using craigslist and hotpads the rents seam comparable. There is some inherent gray areas because of the large yards that I think might allow a higher market rent but need to confirm this with more research.

Thanks again
Rick

Nathan,

Taxes are approximately $5000, more like $3900 as owner occupied.

Something I left out and is that I am using a VA loan and plan on placing zero down. The 800/m is based on this. My goal would be to live in one of the units, most likely the one that could use some work, and then move/repeat in a year to fulfill the VA loan requirement.

Thanks
Rick

Hello Everyone,

I have been reading this forum for a while and have found it immensely helpful. I am considering putting a multifamily property under contract and would like some third party fly by opinions.

Units: 3
Rents: 950, 1050, 550
Ylr Gross Rents: 30,600
Documented Expenses (Unofficial): 14,300
Asking Price: 175,000
Heat Payed by: Landlord

The property had two large usable backyards. In a decent area were other residents appear to care for their house. The owner has agreed to paint the exterior and re plaster the retaining wall. Two units are in good shape, one could use some bathroom and kitchen updates but not necessary. Utilities have been upgraded about 5 years ago. I would rate it a C+ grade.

Financing would be about 800/m for mortgage and insurance. Taxes are factored into the expenses, (14,300).

Assuming the numbers are as stated what do you guys think?

Thanks for taking a look,
BW