All Forum Posts by: Cesar Hernandez

Bryn, thanks again for the help. I placed an offer over the weekend and waiting to hear back. I looked at some comps and ran the numbers on what rent could potentially be. I also contacted a lender to get some closing costs, interest rate and such to get a better picture of cash on cash return and other metrics. I based my offer on a 10% cash on cash return. I know others go higher or lower depending on the property. would like to hear your thoughts on ROI and what is considered a good rule of thumb percentage.

Matt, thank you for your reply. I looked up a couple of comps and ran the potential rent number. I just placed an offer over the weekend, hopefully it goes through!

@Bryan Mitchell thank you for the response. Rents between the two properties don't vary that much. I was more concerned of overpaying for a property that would have higher chances of being vacant because of 3 beds being preferred and also having less appreciation over time. My plan is to buy and hold long term, so I tend to get caught up in that. 

I have a question on your advice to run the numbers on rent and compare it to the 3 beds.  If I can cashflow similar money to the 3 bed, would you offer close to what the 3 bed property sold for? or would you use that to your advantage and still make a lower offer based on rooms, lot size and work needed? I truly appreciate your time on helping me with this. 

Hi,

I am in the process of buying my first multi unit property and need some advice. I was originally going to buy a a 2 unit (Unit A is 3 bed/2 bath and Unit B is 2 bed 2 bath) in great condition, but was outbid. The property now sold for 280K. The same seller is offering me a second 2 unit multi ( Unit A and B are 2 beds/2 baths) this is off market by the way. This property need some touch up work inside and out and also the lot size is smaller compared to the first property. My questions is, how much does a 3 bed vs 2 bed unit affect the total price of the property? what would be a good offer based on the first property selling at 280K? They are both in the same location, two houses from each other. in my research I found that there is an average of 20K difference in price between a 3 bed vs 2 bed SFH. Would that apply to a multi unit? any advice is appreciated.

Hi,

I am in the process of buying my first multi unit property and need some advice. I was originally going to buy a a 2 unit (Unit A is 3 bed/2 bath and Unit B is 2 bed 2 bath) in great condition, but was outbid. The property now sold for 280K. The same seller is offering me a second 2 unit multi ( Unit A and B are 2 beds/2 baths) this is off market by the way. This property need some touch up work inside and out and also the lot size is smaller compared to the first property. My questions is, how much does a 3 bed vs 2 bed unit affect the total price of the property? what would be a good offer based on the first property selling at 280K? They are both in the same location, two houses from each other. in my research I found that there is an average of 20K difference in price between a 3 bed vs 2 bed SFH. Would that apply to a multi unit? any advice is appreciated.