All Forum Posts by: Colter Orr

Hello,

 I live in Missoula, MT, but I am looking to invest in Helena. I am eager to invest in the community and would like to meet other investors to discuss the market. I am also looking for a realtor in Helena that invests themselves and works with other investors.  Thank you for your consideration and time.

Colter Orr

We are looking for multi family and 2 bed 1 bath units. But are still in the beginning stages of learning the market in Great Falls.

I am currently looking for recommendation for property management company's and real estate agents that work well with investors and pref are investors themselves( in Great Falls,Montana).  And would love to connect with individuals in the Great Falls Montana Market. My wife and I live in Missoula but are currently looking outside of the Missoula area.  But if anyone has thoughts on the Missoula market that would help also.  Thanks so much!

We could make monthly payments if it was vacant if needed with our w2. We will look into utilities splitting between units. House hacking is not an option but it is a nice area. Thanks so much for your post.

My wife and I would love to hear all of your thoughts on this property in Missoula,Mt. Alittle info before the numbers, its located in a nice central part of the city and zoned for Multifamly. Current homes in the price range of 180k to 275k are selling like crazy as it's a sellers market in the city at that price range. 

Ok to the numbers

Purchase price 235,000 turn key property.  

This is a SFH with a mother in law basement apartment with separate entrances. Zoning allows this. Shared utilities.

Unit 1

1500  square foot 3 bed 1 bath with great curb appeal.  1250 dollars for rent but we think we can get 1350 not including any utilities. Maybe also getting a bit more for pets if it's a good idea to allow them.

Unit 2

Basement 500 square foot 1 bed 1 bath with combined dining/kitchen/living room.  We figure we can rent this for 550-600 conservatively with a 80 utility package that pays all utilities.

For financing we are using 20k from savings, and a loan from a family member for 35k at 4.75% for 15 years.  These combined will make up the 20% down. Plus closing costs. We will be making balloon payments of 5k over the next 7 years to pay back the family loan with roughly 50% of our profit sharing check. The other 50% of profit sharing will be set aside to build a emergency fund for the property.

The rest of the loan 188k is financed at 30 years at 4.25%.

Total combined Principal-Interest-Taxes-Insurance and a 7% maintenance is 1618 a month. Our break even without any utilities. 

With our combined rents of 1800( 1950 higher end) a month we cash flow only 182, but when our balloon payments are over we cash flow 450. 

What problems do you guys see?

What do you guys think of our financing plan?

Any and everything is welcome!

Also any tips or suggestions on how to charge or split up utilities if they are not separately metered?

Thanks so much for all your time this community is awesome! So glad we found it!

Thank you so much for helping my wife and I with this. We are new to REI and Bigger Pockets has turned out to be a great community with more information than we can even take in! Thank you all for your time and responses.

My husband and I are looking at purchasing our first rental property.  The property is listed as a single family home with a separate entrance to a mother-in-law apartment in the basement.  The seller is planning on putting a egress window in the basement as part of our buy-sell agreement.  However on going over the revised by-sell agreement today the seller disclosed that the egress window is being placed without a city permit to avoid cost of such permit and to avoid having a city inspector come to the residence and check to see if the residence is up to code?  Any thoughts on this?  Does a rental property need to be up to code?