All Forum Posts by: Account Closed

@Elizabeth Colegrove, who did you find had the lowest rates?  State Farm just informed me that they will no longer provide me with an out-of-state landlord policy.

Teague, I wouldn't do business with you if I was guaranteed 100% profit in a week!

Thanks for the compliments.  I'm very happy with the results. 

The siding is Cedar Impressions - 7" shakes - Granite Gray.  I had the paint color-matched to the siding. 

Here's a link to the siding:  http://www.menards.com/main/building-materials/siding/vinyl-siding/vinyl-siding-accents/cedar-impressions-reg-double-7-straight-edge-rough-split-shakes-5-56-sq-ft/p-1352102.htm

Here's an update!  This project had taken much longer than anticipated, but we decided to paint the brick and it looks fantastic. 

Thanks for the replies!  I have done a little research, and painted brick houses are not very common in my area.  That being said, the few that I found sold very quickly.  With a new roof, new siding, new windows, and new doors, I think the brick will hold it back from looking like the new house that it actually will be.

Hello all!  I need your advice on whether or not to paint this brick house.  It has not been lived in for 20 years and was owned by a hoarder.  The neighbors are thrilled that there is a new owner that plans to make improvements.  I will be completely gutting and flipping it, so I'm not as concerned about repainting in 5-10 years, but I also don't want to turn off potential buyers.  I know that I can make other improvements like landscaping, trim, and shutters, but the 1952 brick is very dated looking.  All opinions are appreciated.

Thanks!

@Joel Owens , The seller claimed that all of the utilities were being paid for by the tenants, but I will definitely check to make sure water is included in that statement. $700/mo. is what the (3) tenants are paying for their units, and the 4th unit is being occupied by the owner. Apparently, the (3) tenants have been there 35 years, 5 years, and 6 months. The area is in very high demand, and the twin 4-plex next to it is renting their units for $750.

@Abbott Mary , Those were just my estimates...they did not come from the seller.

Hey guys, I'm looking for a little help on a deal analysis for a 4-plex that I have my eye on. It looks good to me, but nothing gets by the Deal Analysis Forum.

Here are the details:

Asking Price: $230,000 (I ran my numbers on $220,000)
Units: (4) 2 bed / 1 bath, rent for $700 each
Built 1966
Tenants pay utilities

Income: $700 x 4 = $2800 / month or $33,600 / year
Expenses (per month):
Insurance: $66
Taxes: $346
Vacancy: $280 (10%)
Management: $280 (10%)
Misc repairs/Long term capital expenses: $428
^ I just took 50% gross rents and subtracted all other expenses

NOI: $1400/month = $16,800/year

Financing:
$220,000, 20% down = $44,000
Loan of $176,000 at 5% interest = $944 monthly payment
Cash flow of $1400 – 944 = $456 or $114 / door

OR (if I Owner Occupy)

FHA 3.5% down = $11,000
Loan of $209,000 at 3.5% = $1,012 monthly payment
NOI of $700 (since I will be occupying one unit) means cash flow of -$459 (assumed $147 of PMI added)

This property is in an ideal location - great neighborhood, proximity to schools, park, and community rec center. I'm trying to keep my excitement level low, but the location is perfect. Let me know what you guys think.

Thanks, Tracy Royce. I actually read your post last night...great advice! Like I said before, we are currently just brainstorming on how to kick this thing off. We figured he could live in it while we fixed it up (it's a street over from my house), and then when the conditions are right, we would sell it and make millions! OK, more like $20k.

Well we are looking to start acquiring rental properties together. He can afford it, but we were just brainstorming trying to figure out if there is a way to make his house be our first property.