All Forum Posts by: DJ Cummins

Not a lot of comps to go from @Austin Andrews  multi family in our area are a bit more rare. I thinks it’s priced fairly. $130k with a gross income of $2050. Its fully rented and no foreseeable cap ex projects. It’s about a 1.6% deal which seems fair   What do you think? 

Hello everyone,

We are dropping the sales price on our 4-plex to $130,000.00.  Gross rents(including $100 in monthly laundry income) is roughly $2,050.  Market rent should be $500 per unit, so an additional $75.00 in monthly gross income could be added with 2 apartments getting rent increases.  Cap ex is low with window AC and wall/baseboard heat.  Roof and all new windows approximately 10 years old.  All units are rented with tenants who would like to stay.  Good property, we are just dissolving a partnership.  Please feel free to reach out to me with any questions!

Thanks,
DJ Cummins 

We have a 4 plex in a good safe area for sale, but we havent had a ton of interest.  It has been listed for a month, and has been shown 3 times in the past 2 weeks but no "real" offers.  Has anyone noticed the Sales market slowing down?  I havent ever sold a property so this is a bit new to me.

Thanks,
DJ

@Lee Underhill if you refi the duplex your Cashflow in that property will obviously go down but the new property would add hopefully more cash flow back in. While rates are still fairly cheap that might be your best bet. My goal(at six units) is to get 10-20 units then pay them off and be sitting pretty. I personally have chosen not to tap into any of my equity. It takes longer to buy my properties because I’m relying on savings and current cash flow, but having that cushion of equity is nice. I plan on buying a bigger property in the next couple of years with the equity I have accrued. To each their own. 😎

@Ghassan Kader - hello.  What is your end goal?  That can make a big difference in what path you take.  How passive of an investment do you want?

DJ

Hi @Aaron Harren.  Just my two cents... one of the properties that i own is with my wife's cousin and his wife.  We have owned the property 4 years, and there hasn't been a single issue between us.  That being said, we have the property listed for sale right now, and we will be going our separate ways, but not because of any family issues, just life changes and goal aspirations.  We were hesitant at first, but it has been a great partnership.  

@Lee Underhill, congrats on the purchase!  What you do, in my opinion, depends on what your goals are.  

If your goal is to get yourself to 50-100 units quickly, i would say a cash out refi on the duplex is a solid option to get that cash back and grow your portfolio.  

If your goal is to get 5-10 units fairly quick, i would consider tapping some of your home equity and keeping the rental paid off and cash flowing well.

If your goal is to accumulate a small to medium number of properties that are paid off, i would look at banking all of the duplex cash flow for a couple of years and then buy another property.  

Bottom line, you have endless possibilities between the paid off duplex and the home equity in your personal residence.  My advice is to figure out the exact end goal, and choose the least painful process to get there :).  

Hello,

I am selling one of my properties(trading up for something larger).  I will copy the link below.  $135,000 asking price, with a gross rent of $2,050($100 roughly is laundry, 2 units are under market rent of $500).  This is a C+ area, that is relatively low in crime.  I live approximately five miles from the property.  All units have been updated, and there is no work currently needed to the building or units.  This is a turnkey property meeting the 1.5% rule!  Please feel free to reach out to me with any questions!

https://www.zillow.com/homedetails/149-Haller-Ave-...

Thanks,
DJ

Hello Everyone,

We are looking at selling a couple of our properties as we are ready to "trade up."  This property is located in East Alton, Illinois, about 25 minutes from St. Louis, Missouri.  This is a Working (C) class area with relatively low crime(no issues in nearly 4 years).  Located 5 miles from an oil refinery(biggest employer in the county), a large steel mill, and Olin Brass, who produces ammunition for Winchester.  Property is a brick U-Shaped building(on a slab) on a large corner lot.  Six parking spaces are located behind the building.  Each apartment is 1 bed/1 bath with approximately 500 sf.  We have never had a problem renting this units out.  Each unit has new laminate flooring, fresh paint, new plumbing fixtures/drain pipes.  Three of the four units have refrigerators less than 1 year old.  Unit four has a brand new stove.  All units have new vanities in the bathrooms.  All units have baseboard/wall heaters and Wall AC units making the cap ex fairly low.  Roof is approximately 12 years old, and all windows are Thermal windows that are approximately 7 years old.  Owner pays water/sewer/trash, and the power bill for the laundry/utility room.  Property is fully occupied and all tenants are up to date on rent. Units 1 and 4 both are under market rent of $500, so an additional $75.00 of income is available once the leases expire.  

Numbers:

Rent: 

Unit 1: $450  Unit 2: $525  Unit 3: $500  Unit 4: 475. Coin operated laundry = Roughly $100/month

Gross Income: $2,050.00

Expenses:

Water/Sewer Trash: $60.00 (roughly $120 every other month)

Power bill in laundry room: $25.00 (average)

Taxes: $300.00 ($3600 per year)

Insurance: $76.00 per month currently

18% for vacancy, repairs, cap ex: $369.00

8% property management: $164.00

NOI: $1056.00

Estimated Mortgage payment: $588.00

Cash Flow: $468.00

Please feel free to let me know if you are interested or have any questions.  I am happy to send some interior pics if you are interested.  This property is turn key, nothing is needed(at the moment of course).  I am trying to sell this off market without a realtor. I am showing the apartments twice on Saturday this week. 

Thanks!

DJ 

We own his property with another couple and without all the boring details, no we need to sell.