All Forum Posts by: Brock Wiberg

Thanks for the reply!

So maybe I am too conservative. Based on your experience, can you critique my assumptions in my initial analysis below?

Vacancy 8% - I figure each unit vacant one month per year. Hope for the best plan for the worst kind of thing.

Maintenance/ Repairs 7% - $98 bucks a month for this and that. One visit from a handyman every other month burn this up won't it?

Cap Ex 5% - I figure this is a minimum to put away for the big items you know are coming...eventually.

Management 10% - While I plan to manage the place myself, I also want to be able to hold indefinitely and know that if I take my REI where I plan to I will eventually remove myself from property management.

Assuming the same 25% down and financing with a  30 yr fixed @ 5%, I get ~$120 monthly cash flow (not even my minimum of $100 per unit). Plus, I've heard the rule of thumb that you should get $100 per door per month assuming 100% financing (in which case the cash flow is negative). Maybe that rule of thumb is unrealistic. I don't know. Thoughts?

Just north of I-40 near Juan Tabo. Plenty of other rental properties in area.

I am trying to piece together a GRM for the area but I am wishing I had access to the MLS. Presently, I am having to scour listings that may or may not include current rents and of course GRM should be based on sale price rather than asking price. The three closest rental properties are LISTED at GRMs of 9.2, 8, and 5.4 (all fourplexes).

It's tough being in this game without having your license. Any advice for coming up with a GRM? I am not even sure my current agent will be familiar with GRM if I asked him to pull comps and find it. Plus, even if the list price of the duplex in question is fair relative to other GRMs in the area, it would need to cash flow to be an attractive investment.

There is a fine line between analysis paralysis and doing something stupid. Advice would be much appreciated!

Duplex in Albuquerque. 1900 total SF, each unit 2 bd 1 bath.

Asking price is $128,000, realtor thinks he can get seller to "come down to $120,000" (I can't wait to see his face when I tell him my highest offer). Sat on market 100+ days and is currently unlisted. Both units currently under lease at $700 per. Both units recently renovated with new carpet, paint, countertops, tile. From assessor I am seeing $2480 taxes and have an insurance quote at $857. Landlord pays ~$100 per month water only.

Not sure how to proceed. I think I could increase rent to $750-$800 per but I don't dare plan on that and would have to wait for current leases to expire anyway. What should I offer? Or should I walk away and keep looking? So hard to find multi-family around here and single family do not cash flow at current market rates for rent!

But what of the due-on-sale clause? I have never taken much interest in strategies that open up the possibility of this option being exercised. While I don't understand why a lender would call a note due when the payments continue to come in, I hear it happens. 

Hey BP, I'm brand new to RE investing and working a full time job as aero engineer. I have nice home that is tying up most of my buying power/ income. 5 bed, 2.5 bath, 2,900 sf, paid ~$250k. Bought it at market value two years ago. Recently looked into current market value ($252-$268) and am considering a downsize into an investment property (thinking BRRRR after living in it a year) with my wife and 2 kids but wanted to get some opinions on what I consider my options to be with regard to selling current home. The market will not support cash flow on a rental this size so I don't consider that an option. Thoughts and comments would be appreciated. 1) List with agent and accept the fact that after fees and closing I will be down a few thousand but will be better able to bring my real estate goals to fruition by freeing up disposable income from my 9-5. 2) Try a FSBO 3) Rent it with a lease option. With the higher rent is cash flow possible? I have no idea but trying to be creative. I don't have a sense of what rent is possible with this option. 4) Any other creative ideas?

Thanks much. I actually have a brother near LA (Ontario). How is the market over there?

I'll let you know what I find. Having only looked over a few dozen listings in much detail I am not seeing too many properties that pass the 1% rule. There are a lot of rental properties in the NW where I am looking so I may have to adjust my strategy. Too early to tell. Any tips on getting access to the MLS? It is tough to run realistic numbers without being able to pull accurate comps.

Hey fellow ABQians, I am brand new (sorry about the lack of photo, I will get on that soon) to the world of RE investing. Just want to say hi and see what networking opportunities folks around here use. Any BP meetups happening in ABQ? I'm fairly new to the area and would like to meet others!

Thanks! BTW, I have a brother in Ontario, how is the real estate market over there?

I feel like I'm drinking from a fire hose but I am going for it. Where do I start?