All Forum Posts by: Daniel J.

Any othr feedback?

@Jay Hinrichs That is very true. Blow down and drought. We had our 3 acres hand logged 2 year’s ago because we needed it cleared out, and made $2,500 which was way more than I thought would ever happen.

I suppose due diligence would be a good idea on how mills in the area determine ownership wouldn’t be a bad idea before buying a piece of property.

So would you recommend buying it for cash since obviously you might have a bit of income off it from hunting leases but probably not enough to pay the mortgage?

@Jay Helms It is covered under utilities.

@Account Closed I will have to process all of that, thanks!

@Michael McKay Whoops! Yes they do factor in the cost of insurance. Somehow I forgot to put that on my post. I will edit that.

2. Yes, closing costs are factored in. 

3. The $5,600 is an annual accrual. I do have the cost of a new roof, and other minor things factored in. Considering that into my cash flow to pay that interest back, I would personally be cash flowing $350 with myself managing. 

Thanks!

@Jay Hinrichs How do you go about protecting your land from illegal timbering on it? I have known of multiple people who have had their retirements literally go poof because someone came in and timbered it while they were not there.

I am currently looking at a triplex with a detached garage apt. It is in the Spring, TX area just north of Houston. It is a B to B+ property and neighborhood. Some room for forced value and appreciation. It is currently owner occupied, with 2 units rented long term, and 1 unit used for AirBNB, I would not continue doing AirBNB. I would NOT owner occupy it.  It is currently set up for owner paid utilities. Shared laundry between all 4 units. I would be purchasing this with a partner who is fronting the down payment. Long term plan would be to refi out in 6-9 years in one manner or another and repay my partner plus 5%. 

Purchase Price: $335,000

Loan: 30 Fixed at 4.875, 25% down

Rents: $4,300 (conservative but reasonable)

Utility Bill Back: $200 (Should increase at release for the current tenets)

Utilities: $7,000 (Based off their actuals plus some fluff)

Repairs: $2,000

CapEx: $3,600

Vacancy: 10% (Somewhat a shot in the dark, I can't find any good data for the area)

Taxes: $7,700 (Current tax rate times the purchase price)

Management: 9%

Cash flow with PM: $450.94 per month 

Cash flow no PM: $815.44 per month

It is on a well and septic. From a previous contract they had the septic inspected and the inspector said they needed a larger system. The current owner said they have had no issues, and have only had the tank pumped once while owning it in 3 years. Both my agent and I feel she is trustworthy. Granted everyone is biased towards themselves. It also has about 3-4 years left in the roof. My cash flow is planning on replacing the roof immediately with a standing seam.

Am I missing anything? What do y'all think? It seems like a pretty good deal, though not perfect.

Thanks!

Daniel

@Jordan Decuir $300 per door?

@Rob Beardsley I completely understand that, I don’t have my own captitol to use right now if I wanted to. I wasn’t sure if that effected how people look at their returns or not though.