All Forum Posts by: Douglas Gratz

@Andrew

@Andrew K.I would love too if you are interested. May I ask what your experience is?

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@Andrew K. I’d definitely be interested, do you own property else where?

Hey friends in Norristown. I have a few duplex and triplex's here and was hoping to open a discussion with other investors with rentals in the same area about all sorts of topics . To name a few 1. Strategy, ROI , CoC, rental rates and so on ...I figure we are better together than alone.

Together we can maximize our profits and actually rebuild norristown so our investments appreciate .we can also share our knowledge on mistakes not to make, info on zoning etc etc

So guys reach out I’d like to talk to my fellow investors!

I would like to know what people think a god ROI is on duplex/triplex's. I just bought a duplex that will return 12% bought it for 125k 15 in work so all in 140k my cash flow is 1500 a month or 18k a year.

This comes to 12% ROI. My question is, is this good?? I can't seem to grasp if I'm buying the right investments?

I know it’s all relative to my plan etc etc, but overall what is considered poor and what is considered good .

Thanks for the help in advance!

@Michael Ealy  

Here is how I broke it all down.

I purchased the property for $125,000

I put $15,000 into it

Total $140,000

I refinanced it and my payment (including taxes and insurance) $1029 (729 payment 200 tax, 100 insurance)

Other expense is $200 a month incase **** happens

$75 put away for vacancies 

Total Expenses = 1304

Its has a 3 bed unit, 1 bed unit, and studio each getting 1,100, 950, 600 in rent respectively (could be $1,300, $1,000, $700 if I put new kitchens and bathrooms) So thats a total of $2,650 in rent

$2,650- 1304 =$1,346 cash flow on a $140,000 house which ROI is 11.5% and CoC I think 107% ($16,368 Year of rent-expense / $15,000 (how much cash I have into it after refi)

Hello friends!

I need some help. I don't know how to know 1. If my ROI is good and 2. For research how do you use the average cap rate to determine the price you should pay.

For the first question about ROi- I'm all in on a triplex that after all expenses cash flows $1400. I bought the place for 125 and put 15k into it for a total of 140k and and ROI 1400(12)/140,000= 12%

Is 12% good. Also my properties are in norristown Pa

Most importantly what do they mean by sales price in these equations?

Because when I put my sales price in at 105,000 and do the formulas the cap rates and all else is very high?

Hello, so I am trying to figure out how much a 5 unit residential building would be appraised for.

All the equations mention sales price: NOI/sales prize to get cap rate . Income approach etc the formulas require sale price. Do they mean what I bought the property for , or total costs after all is said and done and it's rent ready?

Example I bought this 5 unit for 105,000, after I fix it it I will be all in about 260,000. Gross rent income should be 60,000 net income 30,000 . Can some help me with the calculation such as Gross rent multiplier, cap rate, and whatever else you think I should know. Maybe even tell me with different approaches what this property could appraise for?

Anything would be great thanks!

@Kerry Baird @Brian H. thanks for the tips , I appreciate the time to help me! Hope you guys have a good weekend

Hello friends! I am currently in the market for a good portfolio lender. Does anyone know of any good lenders possibly around Philadelphia area? Or any portfolio lenders even if out of state so long as they work around the country ?Any help pointing me in the right direction would be so appreciated! Thank you