All Forum Posts by: Bill W.

All, any comments or insight on this one?

Looking for feedback on this potential deal on a fourplex in my area.

Purchase price: $160,000

Gross rents: $2600 per month.

Principal + Interest: -$648. (20% down. 30 year fixed loan at 4.5%)

Expenses
Taxes: -$300
Insurance: -$125
PM (@10%): -$260
Vacancy (@8%): -$208
Repairs (@10%): -$260
Water: -$250
Total: -$1403

NOI: $2600 - 1403 = $1197

Cash Flow: $1197 - $648 = $549 per month

This is a fourplex in a rough Class C neighborhood. It is surrounded by other similar fourplexes. Rent seems to be in line with the neighborhood. The interiors of each unit were somewhat recently remodeled. This deal is strictly a cash flow deal and I would not expect any appreciation on this deal. Thoughts?

George, I was talking to my insurance agent about a fourplex today and was told coverage would be $1600 on the top end but would more likely be around $1250. I would hope there is some sort of misunderstanding with the agent.

Wow. Talk about putting the customer last. Make enough people angry and word will get around in this business.

Why are you resistant to doing as this lady asks? If your mail is bothering her, it seems the easy and ethical thing to do is to comply with her request.

Oh, and if you need to stop your Thom Thumb coupons, you can go here: http://www.tomthumb.com/IFL/Grocery/Update-Club-Card#iframetop.

A huge corporation can do it, but you can't? C'mon.

Josh McCullough wow, I didn't first catch that the seller is financing the payments over three years. From the number you provided and other info, it sounds like a great deal.

I'd be concerned about deferred maintenance since many mobile homes aren't maintained properly or at all. A small, temporary leak in the kitchen can ruin the subfloor. Since the homes are sold on lease to own, I'm assuming the landlord/note holder is responsible for repairs.

tagging people doesn't work on mobile phones which might be a problem you're having. Otherwise type, "@bill" for me and a list of names appear that you can select one to tag.

John Jackson I would guess this woman has some choice names about the person who keeps trying to low ball her on her house when she's not even selling and he refuses to take no for an answer.

Good luck, Josh McCullough.

As part of your purchase, I would strongly recommend you get free lot rent. There might be a cap on the number of months you could or should get but without say, three months, on each home you run the risk of running up high carrying costs right off the bat.

You didnt share your numbers so I hope you're comfortable with that. I will say, you should get a deep, deep discount by buying twelve homes. The park owner likely doesn't have any other buyer in the area who would make a purchase like that so negotiate the heck out of this deal.

edit: just read your post above and it sounds like the homes are already filled so you're buying the notes in which case free lot rent won't be as necessary but I would still push for it if/when there is turnover.

the Riverwalk is in San Antonio which is a little over an hour away. Austin does have a river that runs through it and there is plenty of hiking, biking, kayaking along the river.

I don't recall ever hearing a visitor complain about a lack of things to do in Austin. There's the University of Texas, the Capitol, 6th street, live music, rivers, lakes, good restaurants and plenty more.

That weekend UT football will be playing away which is helpful in that traffic won't be as bad and hotels won't jack up their rates as if they were here.

Only drawback will be that it will still be a bit hot here.

That date works for me. Location works even better.

I'm planning to be there. See you then.