All Forum Posts by: Chris Mcalister

@Chris Mcalister, the approx 12.9% yield looks attractive if the income and expenses are reliable. In due diligence, you should scrutinize the rental history on each tenant and the leases, plus take a magnifying glass to the expenses and potential areas of deferred maintenance. That pool can be a big hit, financially, if it has not been taken care of.

Likewise, if you decide to proceed, connect with some local agents and PMs and ask them about potential rents in that area, and for that specific property. Another set of eyes helps, plus you may need them if you need to lease a vacant unit quickly.

Thank you for your response,

I came up with 8.6% cap rate but that included insurance, $100 a month in maintenance costs, and a 2% rate for vacancies.

in the local area 2 bed units are renting in the $650-675 range and have low vacancy rates from what I have seen.

the leases on 2 of the 3 bed units are for 2ry and have been long-term tenants. One of the 2 bed units is be remodeled as of now. The house is also on a 2 yr lease.

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so being new to REI I wanted to get a few eyes on my 1st deal and see if I could get the opinions of a few people here on BP.

asking price 249k, 4 unit mulit. 3 2 bed one bath, and a 3 bed 2 bath SFH with a pool on the same property. The 2 bed units are rented for $600 each, and the SFH is rented for $950. owner pays water and trash that averages $250 a month. Property tax is $1900. The property was built in 1971 and looks to be in good repair with central a/c. The property is located in Glendale, AZ.

I plan to use a buy and hold strategy and use the cash flow for capital for my next deal.

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Originally posted by @Lucas P.:

That's understandable @Chris Mcalister

However, you don't need to be a hands-on investor. In fact, my first deal in the US I purchased while in Australia (that's the bigger Island in the Pacific), and was a rehab here in Phoenix that needed to be totally gutted and reconfigured.

I currently also manage projects for several Australians and a New Zealander of which only two have visited to check on things, but the rest are completely hands off.

I know many of the members on here that invest in other states are the same. They don't physically do any of the work but entrust contractors and the right people on the ground to check things out for them. You'd be surprised how little people will charge you to just go take some pictures and video of something if you need them to check up on your people and/or investments.

Lucas,

Awsome advise, and thank you response.

For my 1st deal I want to be as hands on as possible. I would like learn as much as I can, so I can continue to invest with a bit more knowledge each time.

I'm currently using a realtor in phoenix that has been very helpful in finding a turn key property for me to invite. On my next deal I think I might go that route.

I'm thinking I might post the property details to see if it looks like a good deal to the others here on BP.

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Originally posted by @Lucas P.:

Welcome @Chris Mcalister

Some good advice there from Bob. Don't hesitate to reach out it you need anything.

Thanks for the reply Lucas

I just looked at financing bob was talking about, and it is a great option that I didn't know that was available. The only thing is it would be hard for me to make it work right now. I'm currently stationed in Hawaii with the army and trying to do any type of rehab from here would be difficult.

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Originally posted by @Bob E.:

If that is your situation I would also look for something that is not financeable because of needing a lot of work and consider a 203k loan if you can get a deposit for that. Check out "House Hacking"

I will give it a look, I realy appreciate the info.

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Originally posted by @Bob E.:

VA pushes additional cost onto the seller for closing. Well priced properties are receiving multiple offers right now so, unless you are offering more money the seller is going to pick a buyer that is not looking for closing costs.

Thanks for explaining,

The reason I was looking at using VA was do to the 0 down. I don't have a lot of capital to start with so a conventional would be a little harder for me to pull off.

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Originally posted by @Bob E.:

@Chris Mcalister The market for multi units in the phoenix area is pretty hot right now with a lot of properties selling for cash. I would recommend against going with a VA and look for conventional financing instead.

Thanks for the reply bob.

Why would go with the conventional?

Like I said I'm a first time buyer so I'm still trying to learn.

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Paul, thanks for your response,

I have been listening to the pod casts for a few months now and have found them to be very informative. I have read a few of the beginner guide here on BP, and will download the guide above and give it a look. This site has a wealth of knowledge. It's great to know there are people that are willing to help.

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I would like to start by saying like the site and thank you all for the useful information.

I'm looking to buy a 4 unit multi that I will occupie, I'm new to reality and I'm a first time buyer and plan on using a VA loan. eventually I plan on buying multi 2 yrs after. I would appreciate any information or guidance.

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All Forum Posts by: Chris Mcalister

Chris Mcalister has started 8 posts and replied 29 times.

Post: deal or no deal? phoenix area multi

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