All Forum Posts by: Danny Soileau

Thanks Mike. We are looking at a 4plex. It needs a new roof now. Seller just had a roofer patch some missing tabs. Says may not have to change for another 2 years. I think it needs to be changed now. Seller is asking 145500. $2000. gross income. Other issues are the dryer vents are venting into the attic! Has been that way for years. I know that is a no no. Not sure how that needs to be fixed. Electrical panels are Fed Douglas, has not been any issues thus far...but that may be a big ticket item if it has to be replaced. Each unit has 1 window unit for HVAC. I also know the sink cabinets need to be replaced as tenants move out...COC is 13.94 with CapEx at 6%. Netting us $394 total/mo. that's if we can get the seller down to $135500 and we add the $10k for roof into the financing...thoughts?

I only had 1 roofer look at it and that's what he quoted me. Still wondering how to decide what percentage to put in the CapEx field. Is it an arbitrary number or what's the method to accurately know what percentage to put down. Thanks.

How do you figure out what percentage for the CapEX block within the Rental Property formula? For instance if I know the property will need a new roof in 2 years...if gross income is $2000, would I put 20% in the CapEX field? Meaning that I will be holding back $400/mo for the new roof in 2 years? How does that affect the rental property formula?   Thanks. 

The $2000 if before all expenses. I'd say the area is a C. Also is there a number as a percentage that needs to be plugged in for CapEx? In the first run through of the rental calc I did not put in a CapEx percentage and COC was 13%. After I put in a 10% CapEx figure the COC went down to 8%. How do you determine what to plug in for CapEX?

I can purchase a multi-family 4-door property for $145500. It is cash flowing $2000 with all 4 doors with tenants. It needs a new roof either now or for sure within 2 years. Estimated cost on roof is $10k. Its an old building with electrical panel manufacturer that is no longer around. Needs to change out cabinets in kitchen because of previous water damage. Dryer in each unit is vented into the attic which is not right. Previous owner has had this property for 8 years. He says tenants are happy and he has not had any issues. I ran the rental property analysis, it shows about 13% COC with having to install new roof. I guess I'm just worried about the electrical panels even though there is no issue right now. And the fact of having to install a new roof and feel I should deal with the venting into the attic. Plus I think the purchase price to too high. Thoughts? This would be my first purchase in real estate.

Thanks for the input! very much appreciated.

I'm wondering about the comparisons for rental property investments between townhomes and single family homes...any input would be appreciated.