All Forum Posts by: Christopher Lee

Hey all,

Thanks so much for the replies. I just got back from Knoxville and Gaitlinburg. Got to see some fireflies which aren't typical in the West Coast. Awesome places! Thanks for the recommendations. Let me know if any of you are in the Knoxville market in any way shape or form, I'd love to connect with you.

Thanks for your recommendations! Much appreciated

First time coming to TN. Will be driving from Nashville to the Great Smoky Mountains. Would love to get any thoughts on Knoxville/Maryville whether it be real estate agents, PMs, contractors, where to start looking or what restaurant I should stop by! How's the market here? 

Much appreciated!

Thanks all. I guess I was looking at the coc return but maybe I need to balance that out with unseen costs.

@Kyle Collette

1) Just based of the pictures. They don't look like its in the best condition. I put 10k for rehab but I'm feeling that will spread thin if I try to rehab all 9 units. How much do you spend per door? 

2) good point on utilities

I just found it in South Carolina 

Hey all,

I'm looking at multifamilies and I came across this $135k property. It has 9 units that gross $3600. Some of these are duplexes while others are separate buildings. I believe this would be considered a Class C type.

I did the initial calculations and I got ~20% COC. I have since made my costs extremely (I hope) conservative and still end up at ~11% COC. I bumped up maintenance from 2018 actuals ($9000) to an estimated ($13,000). I bumped up vacancy from the normal 5-7% to 14% as one of the units is vacant. I also put in sort of a random 10k in rehab costs and didn't increase the ARV. I threw in $100 monthly landscaping though not sure if they really need it. I plan to have a PM company oversee this

My biggest fears are

1)  I don't have the standard $100/door per month here. I have it $41 per door, but still cash flowing ~$350. Is this a red flag? Am I overextending myself?

2)  Since I'm out of state I'm budgeting in a PM at 10%. Will it be more? This is definitely a lower end rental

3)  Maintenance, I'm putting a lot of budget for this, is this normal?

4)  Are my rehab costs too low? There are 9 units.

5)  Are there expenses I'm missing?