All Forum Posts by: David Miller

@Darius Ogloza it is in a high tax state, but it also has special assessment tax that increase the tax amount.

@Steven Wilson thanks for the quick response. One thing that makes me nervous about low cash flow is the potential repairs could easily eat up my cash flow or put me in the hole.

@Kai Kopsch thank you for the response. Yes, taxes are very high!

Duplex cost: $230,000

Total rent per month: $2,300

Annual taxes: $6,200

I would need to invest about $3,000 into the duplex to have it ready to rent. It was built in 2006 so it is in pretty good condition.

1 half is already rented at 1150 per month. Tenants pay all utilities, trash, lawn care, etc.

Decent neighborhood but not the best around.

I learn towards no on this deal because the taxes are so high! But I’m new, so looking for perspective. I know many other variables could play into this too! All feedback is welcomed!

@Darius Ogloza thank you for the quick response! There is not an HOA, so no fees there.

Thanks for your feedback!

Hello all, I have been reading a lot of your posts for a long time and appreciate all I’ve learned. I’ve been one of those over analyze and not take action people.

Well I've finally created an LLC and am putting an offer on a new construction duplex. The offer is for $295,000 and I can rent each side for $1,500 per month ($3,000 total per month). The tenants pay all utilities. Taxes are approximately $4,500 per year. I plan to manage it myself for at least the first year. I do get relocated for my job every couple years so eventually I'll have to have a property manager take over or I'll have to manage it from states away. This property is in Kansas.

The builder has a couple duplexes left. 1 already has renters lined up, the other does not. I can purchase either one. The builder will let me review (and have my attorney review) the lease contracts for the one that will be rented about the time I purchase it. Both are the same price. Any recommendations on which option to choose?

I am buying without a realtor but am having an attorney review everything. This is my first rental purchase so I’m second guessing everything and looking for any advice! Based on the numbers I’ve provided, does anyone see any red flags? Or have any recommendations?

@David Smith thanks for the response. I realize I’m going out on a limb here by asking this, but do you know of any multi family dwellings currently for sale that I could look at as an example?

@Taylor L. Thank you for the quick response! That is the conclusion I had come to, so it’s encouraging to know I wasn’t off base. Thanks again!

Hello, I am new to real estate investing and this is my first post, so I apologize if I’m posting in the wrong location!

I have read a few books and done quite a bit of research, but still have a ton to learn! My plan is to purchase multi family units (smaller apartment or a couple townhomes). I have analyzed over 70 apartments and townhomes and have not found any that meet the 2% rule, in fact, most are not even close. Is anyone out there finding newer (20 years old or less) multi family units that meet this rule? I’ve done a lot of searching on Loopnet, google, Craigslist, local papers, etc. Any advice or direction would be appreciated!