All Forum Posts by: Chase Swanson

@Jaysen Medhurst understood the lender we are working with has given us multiple scenarios 15 20 and 25 and you are correct with your values of interest rates. We were just trying to keep the initial investment low. I guess it’s more of a balance of initial investment to cash flow.

I would not be living in this place. I would be renting all four units. My goal would be to look for the rents to slowly rise over the time owned which is typical for all parts of the country assuming healthy economy. Would also be looking to refinance before the 5 years on the 15% down to acquire enough equity to drop the payment to a reasonable interest rate later on down the road growing the cash flow. 

Thanks again for the reply. 

I’m looking at a property to be our first one. It’s a four plex in what my agent says is a c area. I feel like I am running these numbers very conservatively but wanted to see what people think about the numbers below

215k purchase price

15% down

1436 piti

2400 rent (>1%)

5 vacancy

10 pm

5000 year reserves

2800 year maint

I’m very close to positive cash flow on this but I wanted to see if this is just a deal that needs some massaging or if there is a flaw in the way it’s calculated.

Any input is greatly appreciated.

Yeah, the numbers seem to be incredibly favorable. This would be my wife and I's first investment property so we want to make it something that is for the most part turn key and is something that will produce cash flow so we can keep the train running. I am running numbers in the area quite a bit weekly if not daily, what is a reasonable vacancy rate and PM rate? I have been running 10 and 10.

I am not sure we looked at that one specifically, we were in contract on one in Texas street but had an inspection and was pretty rough. It seems the International District is kind of rough as far as tenants and units go. What are your experiences with the ID or Warzone area?

Looking to purchase first deal. We are currently looking and making offers on SMF in Albuquerque. We have 40k to spend on our initial investment and want a turnkey property. Obviously we are looking for something cash flows and would like to scale upward as we go a house a year or possible more. 

Listening to the podcast and reading on forums, it has been discussed that "The Stack" is something you can use to help you out and make the first deal something to get your feet wet and then move forward with duplex tri etc. 

If we have a finite amount of money to put down for an initial investment, would it be smart to spend that money on a more expensive multi fam 200k or spend less and buy one SFH and learn with a smaller initial investment?

@Art Perkitny

It’s on Texas Street a couple blocks west of golf course. We have done incredibly conservative underwriting for this and are still able to make it cash flow which is our goal. We are still collecting documents from owner now and will continue to vet out the property before closing and during contingency period.

I was turned onto small multi family in Southeast ABQ New Mexico. I am hearing it called the war zone. I do not live there but have heard stories about needles in streets, prostitutes, and other things that happen in this area that may be something you would want to not be a part of.

When I run the numbers on the fourplexs and run them extremely conservative they still make a lot of sense financially. I am working with a realtor and another local guy who have had a lot of success in this area.

Is there anything to know or understand about this area that will make the numbers make less sense or watch out for?

Any information is greatly appreciated.