All Forum Posts by: Travis Soileau

As I noted earlier, I will convert this house into apartments and rent it out to 3 or 4 units depending on the demand. I believe we may have a communication error. The gross income from the property when I am done will be:

Unit 1: 600
Unit 2: 600
Unit 3: 450
Total: 1650

Note: 250.00
Insurance: 600.00 a year / 50 month
Property Taxes: 300 a year / 25 month
Repairs: 300.00 / month

Expenses: ~ 625.00
Monthly cash flow: ~ 700-1000
Total investment ~ 10000.00

Ok updated.

Zoning for this neighbor hood is good. It allows rental and multifamily units.

This will put me at 16 units. There are no furnace in Louisiana. They have 2 central air and heat units. I plan on using window units. It does not take much to warm a house in louisiana. I have done deals like this previously.

The cash flow with these properties should be 1000+. I plan on keeping utilities under my name. The climate is not that critical here. The natural gas bill never goes over 150.00. It is affordable because the resource is abundant here.

After I establish my cash flow with renters I will convert them to separate units and get them off of utilities. Again I have done this previously and it works out good.

The cost of living here is really low compared to other states. A normal house sells for 80,000-100,000.

On the 5 bedroom 4 bathroom house, it previously foreclosed with a balance of 170,000.00. It has been vandalized and the price has dramatically dropped. I currently bought it for 25000.00.

I have a renter already. They will pay 450.00 a month plus up to 150.00 in utilities. Totaling 600.00 a month with utilities. I would not recommend utilities in colder states but in my geographical location it works out great.

It seems risky for some investors but has worked out great for me. In the long run the renters stay longer and fill faster with utilities.

As usual I will post my deal that I am working on.

I am purchasing a house in a below average neighborhood. It will be a 10,000.00 dollar sale cash. The total will cost me 10410.00 with closing cost. They already have an established renter. He is blind and deaf. He gets a check from the government for disability. He is paying 325.00 rent. It seems to be a good deal. I will get my return on investment in about 4 years.

The second deal I am working on is a house that has 5 bedrooms and 4 bathrooms. I will convert it into 4 apartments. From the start I will setup 3 apartments at the bottom and then as time goes I will add another on the second floor.

I believe I can get 350.00 a unit per month.

I put a bid for 25000 and they took it. I will go through a bank and have to put 5000 down. I have closing cost and insurance and inspections to do. I will keep everyone posted of fees and outcome.

I believe it should bring income of 350 x 3 = 1050.00. The expenses will be a about 600.00 with a cashflow of 400. I think it will be a good deal considering I will still have another apartment to add in the next 3-6 months.

I have been having the new property for a month now! It is going great. I have had a few minor problems but it is going good.

I am about to switch all electric to the renters. They already have their own meters so it is not that big of a deal.

Deal closing this week. I am getting 7 units for 70,000.00. It needs some TLC but it will be well worth it.

There is a septic tank that has to be changed on one of the deals and the bank only wants to lend for one of them.

But I am closing on of the deals! I am excited.

Great things coming!

Its better to make mistakes than to do nothing. Ready....... Fire....... Aim. Mistakes are our greatest teacher. You are doing the right thing by asking questions. Take actions and make adjustments. You can't really fail as long as you learn and apply knowledge.

Thank you Jon . What are your views as for as including utilities with a rental unit?

I talked to the parish and they said I will need an inspection by an approved contractor that specifically works on these type of tanks and a year contract with them. I also talked to a contractor that works on modad tanks. He said he will be coming tomorrow to check it out. I'll keep yall posted.

The thing about single family houses is that even if you do manage to get positive cash flow. When there is vacancy you will be getting 100% of the bills. I would look for a duplex or some type of multi-unit property. They are more diversified.

But if you were persistent in getting this property. Show him the numbers, build a relationship with him, take interest in what he has to say, and then talk about prices.

I would also get some audio's on negotiation.

Hope that helps,

-TS