All Forum Posts by: Chris O'brien

Off of apartment buildings. I know this is hard to calculate but can you give me a rough estimate for a rural area. I have a number in my head and I want to see if it is close to what everyone else thinks.

What would the tax rate be in MA or NY?

You have to pay property taxes but are your leftover profits taxes the same as income from a regular job? If so can you write off expenses(i.e. maintenance)?

Joshua Hernandez a couple reasons.

1. I am new to this and want to start small.
2. Zoning limitations.
3. I don't want the headache of managing more units.
4. My job just came to an end(the contract expired) so I don't think I could even get a commercial loan.

If everything goes right with the fourplex hopefully I will move up in the future/

Adam Johnson This is a very small town, the few apartment buildings are cash cows and nobody wants to sell their buildings. Building a fourplex will cost +/- $220k.

I live in a small town in Maryland that has a big shortage in apartments. I want to start out buy building a fourplex using 100% cash. I want to build 2br apartments which I expect to bring in $1,000/month. If everything goes perfect for a year the building could bring in $48,000/year. Let's say taxes are $6,000/year. How would the rest of the expenses go? I'm assuming the 50% rule can't apply to a brand new building.

For example, lets say I buy an 8 unit apartment building 100% cash. The property brings in $800/month/unit. Potentially $6400 a month and $76,800 a year. I'm looking for a very rough breakdown of the costs to keep the building operating. Lets say the building is valued at $350,000 here in Western Massachusetts. Not looking for exact numbers, just rough estimates so I can become more familiar with the expenses. Thank you

If you are uncomfortable answering this question, please don't.

Also what do you do to make your money(flipping, renting, building, etc.)? How many properties/units do you work with? Also how many years have you been working in real estate? Just a rookie trying to find my niche! thank you

Thank you for the replies. I'm probably aiming a little too high but this is just a preliminary discussion. Maybe a 4-6 unit building would be more realistic.

Joel Owens I would have to quit my job. My job requires me to live away from home for the majority of the year, I live different countries for months at a time. So when the construction starts I won't be able to do both. I would be working on the apartment building along with the contractors. My wife will still be working and we bought our house cash so that is how I will survive.

Ethan Vegas What exactly would help make this deal work for the lender?

Tom S. It seems that multifamily buildings are very overpriced in my area so that's why I'm looking to build. Forgive my ignorance but why do lenders view new apartment buildings to be so much more risky? I would imagine that rehab project would have a lot of risk as far as unexpected costs and vacancy rates.

Let's say I'm building a house and put down $50k, which would be well over 20% of the total costs, maybe even 30%. Do you agree on EXACTLY how much the loan would be for before the construction begins? Is there any flexibility in this if unexpected costs arise? I'm new to this and just want to be able to borrow what I need, no more or no less.