All Forum Posts by: K W

The properties are on two separate listings, so I imagine they are on two separate deeds.

Is it tough to qualify for two loans at once, or is that okay if the same lender handles it all and understands what you're doing? I was also worried about costs on two loans, but it sounds better than the terms of the commercial loans you are talking about.

Here's a link to the topic about my numbers:
http://www.biggerpockets.com/topics/30818-6-units-looks-good-to-me-?forum_id=88&page=1#posts-149986

The property was built in 1982, exterior looks clean, haven't seen interior yet however it has new tile floors in all units and some new windows. Hope to see the inside this week, but don't want to waste my realtor's time if the numbers or PM doesn't make sense.

I can get a 30 year loan at 6%. Was going to put $95,000 down for a loan of $287,000 with a payment of 1718. per month.

So are you saying the 50% rule applies to the sale price, not the actual loan payment? We want to buy and hold.

We are looking at a 6-unit property that is located about 1.5 hours away from us. We want to manage it ourselves and pay a gardener and a handyman to take care of everything on that end.

We understand that there may be instances when the handyman isn't available and we'll need to head to the property - not a problem since my work schedule is very flexible.

Is there a reason that I should not manage it myself from that distance? What about rent collection - is it reasonable to ask tenants to pay by mail, or what other option would you give? (Probably not a computer type renter for online payments)

On your properties, what is the average number of visits you need to make per month/year, etc? I don't want to get into this and find out I have to go down there for something several times a month.

Any comments or suggestions on how you handle things and what works for you would be greatly appreciated! Thanks.

Never mind, I found the answer to this in another thread. Thanks!

When I spoke to a lender about purchasing a 4plex, they told me that was considered a residential loan, but any more units would make it a commercial loan.

We are looking at a 6-unit property. Would that be a commercial loan? If so, how would that differ from a residential loan as far as down payment, qualifiying, closing costs, etc?

Thanks!!

In another post, it was mentioned that I could purchase a property (4-6 units) under my personal name and then re-title it into an LLC after the sale. Has anyone done this, or should I really set up the LLC first?

1. If I set up the LLC first, will I still be able to get the same type of loan? Do they still look at my personal credit history and such?

2. My son bought a car and wanted to add his wife to the title. They lender will not do it; they say he has to refi the car to get her added on, since she wasn't part of the original loan agreement. Could we run into this with a title change after purchase of the property?

Thanks in advance for your help!
Kathy

I'm back for more advice - - Found a 6 unit property (two triplexes) for $450,000 but I would probably offer $382,000 (85% of price). (It's a short sale.)

Currently fully occupied, monthly gross rent is $5700. Using the 50% rule, I'd have expenses of $2850 and a payment of $1718, so profit each month of $1132. ($188 per unit)

Am I figuring this right? Thanks!!

Thanks for everyone's advice. The properties i was looking at didn't work out - - thanks mostly to this forum and the help they gave me on number-crunching - - you all saved me from making a bad purchase.

I'm still looking though....

Thanks to both of you. The more we read about this and understand the numbers, the more we are realizing the truth in what you are saying. I'll be checking into actual numbers tomorrow, such as property tax, insurance, utilities, etc and then crunch the numbers again.

But I think you're right - - That's not much money to make while enjoying the hassles that come with dealing with tenants, repairs, etc.

And the other 4-plexes in the area that are in the $200,000 price range are money pits in poor neighborhoods. That's southern California for ya!