All Forum Posts by: Derek B.

Others have mentioned capex. Figure it out for this property.  What is the remaining useful life of the major systems, determine replacement cost and you can calculate an approx monthly capex. 

Prop mgmt will not be 10% of gross rents. It will be 1 months rental fee plus 10% of rents plus 1/2 months rent as lease renewal fee. You will pay 15%+ over the long run. In my experience, you will have more frequent and more expensive repairs when using a pm. 

What is the health of the hoa?  Read up on the h3ll that an hoa can/will put you through. Never again for me....

You will have vacancy, even the most in demand property will at times. 

Speaking of which, you will have turnover costs.  Trust me, you will spend $500 minimum on minor repairs and touchups every time a tenant moves out.

I will also challenge your assumption that a mil base 30 minutes away will supply constant tenants.  Not sure which of our bases this is near, but there are SFRs for rent at comparable prices within 30 mins of each of our bases.  

Appreciation will not bail you out either.  There is too much land in eastern north carolina. Remember 2004 when this place was built....that will repeat itself and a developer will throw up another townhouse community. Brand new properties will trade for the same $$ as yours. Exception may be if this is in a community with draws other than military: coastal, golf, etc

Others have pointed out that at best you will get 5% cash on cash and won't get your money back for 14 years.  If you are comfortable with such low returns, you could just lend the entire 145k to me for 6%, 30 year am, 15 year balloon and your $$ will be much safer (Mods: that was not a solicitation- just trying to prove a point)!!

On a serious note, why invest so far frrom home when you have that kind of cash. Ever thought of lending short term to others?

@Heather Ippolito

@JD Martin  i agree with you that its unlikely someone will clean up immediately every time. I also don't expect timely cleanup in the fenced backyard of an sfr.  But in a multi where kids run and other people are around, i expect it to be cleaned up timely. If they can't handle that, they need to move to an sfr. 

30 seconds...long enough for them to put the little baggie on their hand and pick it up.  It's one thing in a private yard...they can leave it there and attract flies and disease as long as they want (it's still gross) but if there are other people around, it should be cleaned up asap, no exceptions imo.

@Carol Venolia  "@?" To tag someone. In most browsers, type the "@?" Then wait and alist of users on that topic will show up underneath the dialouge box. I intended to tag you in my post immediately above but forgot. 

A friend with a large multi took this concept one step further. He did the dna program but installed bags and depositories around the property. Residents who spotted poop could write their apt # on a bag, clean up the poop and deposit it. He had them tested and charged the offending party the cost of testing plus $25 for first offense, + $40 second offense, etc.  My friend didn't keep any of the fines above his dna cost and passed them on to the resident who picked up the poop. Within a few weeks all of the kids that lived there were cleaning poop as soon as the owner left it behind and the place was spotless. 

Welcome to bp!  Not sure how many members you will find east of the triangle, but glad you are here.  I am originally from Wilson. 

How old is the microwave?  @Tomas Calvino

Someone beat me to it, but Charlotte was the first thing that came to my mind.  Interesting dialogue.

The deflection comment had to do with your idolization comment, which is out of nowhere and unfounded. I didn't attack you, in fact, I didn't name you in my first post. You are the one who said that you lost interest if he wouldn't post numbers.  Go ahead and get your final word in if you want - I am not debating with you.

@Steven G.

@Steven G.  

Idolize? No

Offend? No

I would say the same of any builder.

You are trying to deflect and I was just stating my opinion.