All Forum Posts by: Doug Merriott

I use an Android tablet, looks like there will be no linking for me. Thanks Raymond.

@Daniel Paloscio sorry I did not get this sooner. I went to the Wealth Builders meeting in Largo on Walsingham. It was BUSY!!! I did not get a chance to ask about accountants...

@Steven Hamilton II, that is very interesting. I like the things you write. I will send you a PM.

Hi Daniel,

We are looking for an accountant too. We are going to a REIA meeting tonight and intend on asking there. I will let you know if I find any good contacts.

Doug

Hi Stephan,

Pleased to meet you and welcome to bigger pockets. There is a bounty of information here and many very sharp people.

My wife and I are relatively new investors. We have one single family and we are searching for others and/or a commercial multifamily. We are always interested in speaking with like minded people. We live in Virginia Groves Estates neighborhood.

Doug

Thank you to the folks who responded.

There is a lack of efficiency apartments in the area. It is rather expensive to live in Clearwater, any efficiency apartments I found were $450+.

If I could make the numbers work I know I would not be offering asking price. I am just curious what constitutes reasonable and what is offensive.

I am also curious about getting out of expensive money and into a loan around 5-8%.

Hello Bigger Pockets,

My wife and I have begun looking at our next property acquisition and I honestly think we found a diamond in the rough right away. The property is three buildings on four 25'x145' lots (slivers of land), two are efficiency duplexes and the third is a 3/1. The property is in a passable neighborhood, but it is very close to a hospital and shopping centers so the tenant base will be significant. The buildings need new roofs and some cosmetic updates, but I would say they are livable right now. Asking price is $125k, we will not be putting any of our own money in, $25k from family at about 5% interest and the balance would be hard money. The numbers work up to 12% interest, but I don't quite know my exit strategy to get in to cheaper loans considering this is a five unit not a quad. Comps are all over the map, but my best guess for market value is $25k land, $70k 3/1 and $30k each for the duplexes for a total replacement value of $150k.

I used Brandon's spreadsheet to come up with the numbers below.

Asking price $125k

Rents will be 3/1 - $775, efficiency - $435*4 =$2515 or $30k/year. Only the 3/1 is rented right now.

NOI $22k

Mortgage $15k

Taxable Income ~$5k

I have a lot of plans for the property that would bring me an additional $300/month. I just like to look at worse case scenario first.

Suggestions, glaring problems?

Hi Norman!

I am relatively new around here too. There is a lot of wisdom and a lot to learn. I think the Beginner's Guide was one of the best things I have read this year. Good luck with your venture.

Doug

I don't know the rules regarding REIA recommendation on the forum so I will connect with you and we can talk off the forum.

Thank you @Brandon_Turner. I have been voraciously reading the site since linking to it from invest four more.com. Your writing is an inspiration! I am happy that others share their wisdom, giving new people like me a clear path to success.N