All Forum Posts by: Account Closed

Hello all - looking for some help in looking through some numbers for a quad in Raleigh, NC.

I'm new, and don't 100% trust my own analysis or all that I've read in online. However, I do trust all the expertise on BP (gosh, I've been lurking for YEARS!), as I know there will be no sugarcoating, just real deal opinions and knowledge.

Info:
Location - Raleigh, NC 27606 (SW Raleigh) - great schools, about 50% of housing are rentals.

Property - Quad - 2/2 each unit, built 1995. Good shape, rent ready.
Sq Ft. - 3300 sq ft livable (about 825 sq ft/unit), 0.4 acres

Asking - $225k
Mortage with 25% down @ 5% = $906, $10,872

Ann. Taxes - $2659

Est. Insurance - $1k (they said 800/yr, but I think that's low). What do you guys think?

Estimated Rent/Unit - I've round $650-700 online, but let's say $600/unit, $2.4k all

OK...if I utilize the 50% rule & review #s on monthly level, then:
Rent = $2.4k
50% = $1.2k
Mortgage = $906
Cash Flow = $294
*Ideally, I would like $400, so offer price would be more like $200k ($805 with 25% down @ 5%).

Should I be concerned about cap rate for just a quad? Or are cap rates used primarily for larger properties? If applicable, then cap rate will be:
NOI = $14,400
Asking = $225k
Asking Cap Rate = 6.4%

If purchase @ $200k, then Cap Rate will be 7.2%.

I've read Raleigh cap rate is anywhere from 6-12% (pretty big range), so this will fall on the lower end.

Have I missed any important data? Assuming all data here are somewhat accurate, would you consider this a do-able deal @ $225k? @ $200k?

Thanks all in advance for your input and guidance!

Hi all - we are closing on a townhome investment in November and will need to hire a PM (we are in NY and the property is in NC). We've narrowed the choices down to two companies and want to see if you guys have any feedback or experience with them or can make a recommendation for a company you trust.

Much appreciated!

The two companies are:
Linda Craft
Wilson West Agency

The St. Louis Section 8 had major issues. They moved offices and couldn't find our paperwork for months. They had our PM as the owner instead of us, etc...took about 6 months to resolve the above - was kind of hair pulling crazy.

The tenant is ok, but she can no longer her portion of the rent, so she has decided to leave for somewhere else.

Yep - long distance deal. NY is too expensive for us to deal with. We own here, but only our primary.

Question - do we need a broker to help us find a rent to own? I think yes, since we are not there. But how much would his/her commission be and do you know of anyone that is experienced with rent to own?

Thank you!

Thanks Bill for all that great info!

Will definitely do some more in-depth research.

We are thinking rent to own b/c the section 8 is moving out and dealing with section 8 has been a nightmare and we don't really want to do that again.

So the rent to own will be from scratch. I will read up more in the forums and drop you a line for more help, if needed (quite possibly yes!).

Thanks again!

Hi everyone - need some recommendation and some feedback :D

We own a a property in st. louis, mo that is currently section 8. our tenant is moving out in 2 weeks and we are looking to do a lease to own with the tenant. We are currently "talking" with one broker who is unresponsive - not providing comps and not knowing what lease to own is.

Any recommendation for a broker in the area that are familiar with lease to own?

Thanks in advance!

Even though the NY metro market has been better than it has been in years, I still cannot see a way for a small time investor to cash flow.

Small time investor (in my mind) meaning someone or an entity owning and operating only a few properties (SFRs or apartments).

I understand that some folks do flip condos and houses and can make a profit, but what about buy and holders - those that like to buy and rent out for some monthly cash flow?

Not only are prices still high, but most of the units here are co-ops meaning 99% of the time, you HAVE to be an owner-occupant & cannot rent out/sublet. Even IF you happen to find the extremely rare co-op that lets you rent out your unit, you would have to go through the whole co-op board interview and have them know every little detail about your life before they would consider approving you too be a shareholder.

Has anyone here EVER had a cash-flowing property in New York metro (manhattan, bklyn, queens)? If yes, would you please share how you got there? Thanks!

I an new to this and am hoping to learn a lot on this site...

I'm looking at a list of foreclosures in the Atlanta area and I see one of the following on all properties:

Stat: B
Stat: N
Stat: R

What do they mean? I read somewhere that Status B means that the foreclosure has been initiated (notice of default, perhaps?), but what about the others?

Thanks much!