All Forum Posts by: Account Closed

Great idea.  I'm in Chicago but own a rental in Warsaw and come back often.  @John Murphy I'll shoot you a message.

@Clint Moore sure, I will PM you

@Scott Steffek Agreed on charging tenants water and sewage, that's why we didn't included it in the attached figures. Cash on cash return is 8.27% out of the gate (cash after debt service / cash investment).

Looks like I can't attach the Excel file, so here are the details:

I'll be making an offer on a 24-unit MF property in Indiana in the next few days.  The details are in the attached Excel file, but here is the high level overview:

-$1.0MM offered price ($100k - $300k below market)

~$200k of repairs (primarily cosmetic , no major issues that we know of but we will have an inspection done)

-Property has been mismanaged for years, so we view this as a value-add property that we will rehab over the next ~24 months and increase rents from ~$674 on average to $800. There also may be an opportunity to charge water and sewage to tenants, which would be upside to the attached figures.

-The three tabs represent three phases of the deal: (1) as it stands today, (2) during the rehab phase and (3) post-rehab.

I would be love to hear peoples thoughts on this one.  Also, if there are lenders on BP who would be interested in financing a deal like this, I would love to hear from you.  We are talking with multiple right now to get a better idea of potential terms.

Rentlinx is a helpful platform to syndicate your listing across almost every site you would want it to be on outside of craigslist and facebook.  I would also recommend taking a look at Cozy, which is a free platform that you can use for tenant screening/applications and accepting payment online.  There are other, more robust property management platforms out there, but if you only own one property Cozy should do the trick.

@Joel Florek - Nice, I like how you're thinking about it.  You'll probably get better service approaching it that way than hiring a professional manager anyway.  I am planning to self manage as well and since there aren't many managers in my area I will likely employ a similar strategy once I decide to outsource the management.

@Joel Florek - Congrats on all the success!  Looks like you're getting a killer deal on property management, do you mind sharing who you are using? 

@Lee Smith Thanks  - I had a contractor look at it a few weeks back and he also didn't think it was bad.  I'm a few hours north of Indy, I assume that's outside of your guy's range?  I'll be closing on the home on Friday.

@Erik D.  Thanks for the detail, very helpful.  Did your contractor have to elevate that side of the house for the repair?  My inspector is saying that would need to be done and I'm worried that could cause more structural problems.