All Forum Posts by: Cyprian B.

I plan on managing the property remotely. 

Rents will be collected online through a service. I will also screen any new tenants. 

I plan to put electronic locks on both doors to allow scheduled repair/maintenance entry. 

I do have a few contacts in town if I need someone to visit the property. 

Thank you for the comment. You're right, 10% is the typical PM rate. 

I wanted to add

Historical water bills (90 day periods): $450,$420,$240.

I assumed $400 average per period which leads to $133 per month. 

It's too expensive is the bottom line. That's why the switch to submeter. 

Hi everyone. I'm looking for any input if my calculations are off or some numbers look too low. 

Duplex property in Columbus Ohio. 3 bed 1 bath each unit.  C class property. Built 1925.

Will be self managed. PM cost below represents online rent collection and website.  

Purchase price $76500.

25% down assume 5% rate. 

Unit 1: month to month: $500 +$100 pet rent. 

Unit 2: leased until Nov: $700.

Monthly income gross: $1300

Monthly income with vacancy (10%) : $1170

Monthly expenses 

Taxes: $97.5

Insurance: $107.83

Property management: $29

Maintenance: $65 (5%)

Capex: $130 (10%)

Landscaping: $50

Water sewage: $133

Total monthly expenses: $612 

Net operating income: $558

Cashflow: $250

Cap rate: 8.8%

Cash on cash : 13.3%

Rent to value: 1.7% (2% rule) 

---------

After purchase I plan to eventually change both units to $675 per month per unit. Install and use submeter for water. Water expense will now be $20 per month with an initial cost of $810 for installation/equipment/labor. New income : $1350

New expenses: $507

New Net operating income : $708

New Cashflow: $400

Cap rate:11%

Cash in cash 20.5%

Rent to value: 1.8% (2% rule) 

All comments welcome! Thank you.  

Hi everyone. I wanted to post an update. 

I've tried contacting guardian but they haven't gotten back with a quote yet. I'll try again this week. 

Calling the city of Columbus, they provided me the last 3 bills, each a 90 day period. 

$240, $420, and $450. This is much more than  I anticipated. This is on average about $61 per unit per month. 

After doing a walkthrough it appears that one unit has more occupants than allowed. I'll have to check if we get on contract and I get to see the current leases. 

I'll probably do submeter and install new low flow rate fixtures if get the place. 

Thoughts? 

@Robert Ellis I'll discuss some of those details with Josh (realtor). Thanks for the data point. The units that I'm seeing as comparable offer water included. I would rather submeter if it's economical to take the risk away from me.

Thank you @Peter Lohmann and @Deanna McCormick. Those are good points. I'm getting my realtor now to check the current rents on the leases. I'll try to see if I can get water data from the city. I didn't have a data point on how much water might run so I assumed a much larger number. It looks like it will still give a cap rate of 9-12%. @Alamen Ems, If I have something to offer, I'll make a note to contact you. Thank you.

Hi everyone, I'm looking at buying a property in Columbus ,ohio.The property has owner paid water utility. This is a C class property. Each unit 1 bed 1 bath. In your experience how much water does a 1bed 1bath multifamily unit use? What water bills are you seeing? This would make or break this deal since water utility could be reasonable or too much of a risk. Thank you, Cyprian

Thank you both.  It's hard shopping for the home warranty. Just about every company has some horror story complaint against them.

Hi everyone, This is more general house buying information. What company would you recommend for home warranty, specifically for San Antonio Texas. Also what do you look for in a home warranty? Thank you, Cyprian

@Tyler Wilson no, I'm not looking for hard money lenders. Just to. Are sure I understand your question, I'm not looking for a short term loan.