All Forum Posts by: Doug Scarano

@Michael Moikeha so you can back away and it would be completely passive income. Gotcha!

@Michael Moikeha I just figured the expense would be income to me, so I looked at it as profit, but I see your point.

@Matt Schelberg you shouldn't be supplying washer and dryer in first place. I supply oven/stove and refrigerator. I know a landlord who doesn't even supply that!

@Wendell De Guzman I like your chart Wendell! Very accurate. The only place I'd gain is managing the property myself but that's not enough to keep it. I figured about $800 per month profit before taxes and according to your chart if I take vacancy, reserves and management costs out of he equation, that is what I'd have. But I understand that you have to account for them. Thanks for the chart, I am new to actively pursuing income properties so any help in analyzing deals I will gladly accept. Last thing I want to do is lose money,it is too hard to come by.

@Brant Richardson my DTI is right at 35%. Lenders are not anxious to lend.

@Joel Owens most rentals in area are lessee paid utilities. Just seems like deal is a 'gotcha' buy. He's owned the place for 20 years, it's paid for, he nets approx $23k a year. Yes he's approaching 60 and wife wants him to sell a few properties(according to him) but you're gonna give up $23k?

@Joel Owens seller was firm on the 7%/15yr. No prepay penalty. I didn't mind the repairs but paying for heating oil is what's holding me back. I have a duplex that we lived in one side and rented the other. It was a one oil fired boiler when we moved out. The new tenants kept it like a tropical retreat. Went outside in the s ow with tank tops then came I. To get warm! I lost money. So we switched to two gas boilers and they pay for their own heat now.

Seller was asking $169k. Got him down to $157.5k but to me, at 7% and still have to pay either for oil or add two heaters and split plumbing, it's just not worth it.

Thinking to avoid all the hassles, thinking either stick to SFH or put up modular duplexes where everything is new. I'd rather make a little less every month and have brand new house and equipment.

What are your thoughts?

quad located in little Mexico in S. Jersey. $157,500. $3050/month rent, cash. Taxes, water, sewer, trash = $9000/year. Owner buys oil for heat, this year's cost ~ $4000. Seller financing. He wants $37,500 down. Finance $120,000 over 15 years @ 7%. Also new electric service on both sides(4 units). House needs some repairs ~ $2500. What do you think? Stay or walk?

@Charlie Hampton I am right down the road in Bridgeton. Thought about Salem. Places are on sale but I just don't want to deal with the clientele there. Would rather go towards cherry hill or deptford maybe near the school in glassboro. But for now concentrating in/near bridgeton. Have my sights on another fully rented duplex grossing $1700/month but roof is not new or the heaters. Tenants are good pay though.

@Bill Jacobsen Thank you for you analysis and input. Even though I am now renting my second property, SFR, I am still learning how to determine a good deal from a bad. I like having the rents coming in and 90% of the house is upgraded, I also like the idea of flipping. My main goal is to create a steady enough income from rentals to expand into flipping and eventually have enough coming in to make a house with a dock my permanent residence and retire!

Dream big and make big things happen.

@Ned Carey full disclosure: we own this unit. Original purchase was $85k. We lived in half, rented half, saved$, took out equity and bought a rancher 3 BR. Fully rented duplex now for 5 years. Owe $100k. PITI & W/S/T is $1150 per month. After tax and misc. we make $200 per door. New electric. Separate meters. Separate gas. Common water. Rent could be raised a little but I'd rather get a little less than have someone move out.

@Account Closed not sure what GRM is but I will look it up.

@Aaron Mazzrillo you're right, here's the question I should have asked:

What is the maximum price that someone would pay for a duplex that grosses $1755.00 per month? Two 2BR 2BA units. .75 acre common yard. At what point is it a financially unsound decision? Or can it be offset by more cash down? FMV of duplex is $165k.