All Forum Posts by: Chris Kittle

that's a big one to start with. not to say it can't be done, but it would be a lot if you've never owned anything before. have you looked into house hacking?

here are some questions off the top of my head. do you have a professional representing you? is it on market or off? why is the owner selling? how many units are occupied and how many are vacant? are the tenants in good standing or are some behind? are they on leases or month to month? are the rents at or below market? does it cash flow now? could it cash flow with rent increases? are rent increases realistic?

Thanks for those great questions! I am a busy W-2 professional with a paid off house so I'm not worried about where I'm going to live. I also don't have time to personally manage a complex like that but I have identified a property manager that charges 10% of rent to manage the units. He comes highly recommended and I have spoken to him personally and feel comfortable moving forward with him. As for your other questions:

It is currently on the market and has been so for several months

I don't have anyone representing me yet...trying to learn as much as I can before taking that next step with a realtor

I don't know why the owner is selling

I don't know the standing of the tenants

Rent appears to be at market

Assuming 10% vacancy rate, my calculations show that it would indeed cashflow.

Again thank you for posting those questions as those are some of the things that I need to ask the seller when I reach out.

1 Vote

Good morning!

I have identified an 8-plex that I am strongly considering purchasing. This would be my first foray into multi-family of any kind and I want to be sure I'm not missing something. So far the costs that I know I need to think about are as follows:

Loan

Insurance

Taxes

Snow removal?

Property management

Set aside emergency money for CAPEX

Each unit has its own electric meter so the tenants will pay that on their own. I need to check out how the water bill works. What else am I missing that would be a common expense?

Also, any thoughts on loans? I can pay a large chunk (maybe 50%) in cash if I need to. What should I be looking for in a loan?

Thanks so much for your help in advance!

3 Votes

All Forum Posts by: Chris Kittle

Chris Kittle has started 3 posts and replied 22 times.

Post: Questions to ask on an 8-plex

Post: Questions to ask on an 8-plex