All Forum Posts by: Chris Lo

If you're serious about the 4-plex, you should live in one unit an rent out the other units as STR or MTR, along with any other bedrooms in your unit, to max out cashflow for first 1-2 years.

Then you can reposition it depending on equity or sell it.

Michael K Gallagher

Not an imaginary friend. We both are new to this.

I was thinking in the proximity of Oakland county. You are probably familiar with the area since you live in Royal oak.

I do not plan to live in the 4 plex for 1-2 years. Is that the only way to make this 4 plex purchase attractive?

If 4 plex doesn't work out then my only option is to purchase another SFH or 8 unit apartment?

1 Vote

Detroit, Michigan

I need some help with understanding why i should go with a 4 plex over a SFH near Oakland county in Michigan.

I currently own a SFH for myself. My plan was to rent this out and buy another SFH for myself. Keeping the property price under $$350,000-400,000.

I have another option where I purchase a 4 plex with my friend. Perhaps the property price of $800,000-900,000. Just guessing the numbers.

If we put down $400,000 together with an interest rate of 7% (it could be higher), then im guessing the monthly mortgage with insurance and tax would be around $3,886.

If each unit rents for $1,500/month:

Total Monthly Rental Income: 1 , 500 × 4 = 1,500×4=6,000

Monthly Expenses: Mortgage (PITI): $3,886

Maintenance/Repairs: $500

Property Management: $600 (10% of rent)

Vacancy Reserve: $300 (5% of rent)

Total Monthly Expenses: 3,886+500 + 600 +300 = $5,286

Monthly Cash Flow: 6,000−5,286 = $714

We split the profit in half so each person takes $357 a month..

How much should we be profiting from this in order to make it attractive to jump in?

What can i do to make this a good business plan?

0 Votes

Detroit, Michigan

Quote from @Nathan Gesner:

Quote from @Chris Lo:

Which platforms/websites do landlords use to find the rent rate, how long the rental properties have been on the market, and all the details about other rental properties?

I would like to do some research on other rental properties before I set my price

Computer algorithms are good for studying a general market, maybe even a neighborhood, but they are terrible for evaluating a specific rental. They can't assess all the subjective data like overall layout, view from the living room window, the dogs next door that bark all day, the width of doorways, size of individual rooms, quality of kitchen cabinets and appliances, etc.

The best thing to do is study your market regularly. Pretend to be a renter and shop the competition. If you spend 10-15 minutes watching every week, you'll know how to price your home.

Right.
which websites and platforms are good to check regularly to pretend to be a renter and shop the competition?

0 Votes

Warren, Michigan

Which platforms/websites do landlords use to find the rent rate, how long the rental properties have been on the market, and all the details about other rental properties?

I would like to do some research on other rental properties before I set my price

0 Votes

Warren, Michigan

Quote from @Bruce Woodruff:

I just don;t see the demand. How many people do you know that have EV cars? Even with the younger generation, it's not that large. If it makes you feel better, though, go for it....

I would do it for $500 but $1500 is pushing quite a lot

0 Votes

Warren, Michigan

Quote from @Bill B.:

Add the outlet it’s universal and cheaper.

I assume the $1,500 was charger and labor? If so it seems high.

I am literally having one done this week. I went with the “expensive guy” as I saw him do the neighbor’s last week. I provide the charger and he charges me $550 because my breaker box is full, otherwise it would have been $450.

1500$ was for installing an outlet. In this company was charging 1500 and another one charging 1300. It seems like this is about the range of the price. I have no idea why since I’m only trying to install the outlet next to the house.
my main breaker only has hundred amps, but since the AC has a separate meter one guy was saying it’s OK to hook it up to the main panel though

0 Votes

Warren, Michigan

I may be renting out my house sometime next year.

Ive been thinking if i should hardwire a tesla universal wall connector or just install an outlet so the tenant can bring their own charger. What do you think?

Itll cost about 1500$ to install. Im curious how much this would attract finding a tenant. or how much rent i can raise by installing it

3 Votes

Warren, Michigan

Quote from @Nick Velez:

@Chris Lo

7.5% is fair but definitely not the lowest you will find. Rates are constantly fluctuating but I have been seeing high 6's for higher FICO borrower's as of lately. I agree with Caleb , steer clear of large online lenders, that are notorious for advertising extremely low rates just to get you in the door.

I see you’re in Florida are you seeing that number in Florida or Michigan as well?

0 Votes

Quote from @Erik Estrada:

Quote from @Chris Lo:

I did a hard credit pull with a lender (michigan) for the first time.

With close to 100,000$ income, ~740 credit score, 10% down payment, First home buying, purchase price around 350,000$, and pre-approved for 400,000$.
It came out to 7.5% no points.
is this a good interest rate?

With the ease of interest rate, i thought it would be somewhere around 7%.

Hey Chris,

Have you tried applying at a local bank you have a relationship with?

I havent. Do they let you know the interest rate based on the numbers i give them or do they hard credit pull?

0 Votes

I did a hard credit pull with a lender (michigan) for the first time.

With the ease of interest rate, i thought it would be somewhere around 7%.

1 Vote

All Forum Posts by: Chris Lo

Chris Lo has started 12 posts and replied 36 times.

Post: Understanding how to profit from 4 plex.

Post: Understanding how to profit from 4 plex.

Post: Platforms for landlords

Post: Platforms for landlords

Post: Ev charger on a SFH rental unit

Post: Ev charger on a SFH rental unit

Post: Ev charger on a SFH rental unit

Post: is my rate good?

Post: is my rate good?

Post: is my rate good?