All Forum Posts by: Drew Carlyle

I am a custom home builder. I moved back to work in the family business about 4 years ago. Family also had about 10 rent houses and I run that business also. We recently closed on our 30th house and are actively looking for small multi family deals in our area now.

Henry J. - the financing is a lender we have worked with for over 30 years both with our properties and in the home building business. It's not exactly no money down since they are basically going to refinance two of our properties to get the down payment but no cash out of our pocket. The rate is an assumption but it's in the ballpark of what he thinks we can get. Linda Coughlin We would always be interested in expanding our SFR holdings. And the financing I can only tell you what my lender told me. We will see what it really is if we decide to proceed with our research on this property Thanks! Drew

You are right. I left the taxes out of this post but not out of my spreadsheet. This should be more accurate. Units - 22 
Rent - 550 (1 at 490, 2 at 500 - old leases) 
Total monthly revenue - $11940 Expenses 
His financials from 2015 
Advertising - $0 
Electricity - $177 
Lawn care - $180 
Management - $0 
Maintenance - $0 
Gas - $61 
Pest control - $80 
Phone/internet - $214 
Insurance - $525 
Security - $58 
Trash - $561 - includes units 
Water - $166 - includes units Taxes - 615 Total monthly - $2635 Financing for 20 years 
Down payment - 15% no cash required lender to use existing property as collateral 
Financed amount - $620500 
Rate - 4.5% assumed. It will be close to this. 
Monthly payment - $3950 Total cash flow is $5259 per month based on his numbers. I assumed 900 per month for maintenance and I know my manager expense will be close to $1200. I also added in servicing the septic system at $50 per month since I know there is once of those also. Then I increased his numbers by 10% just to be conservative and put a 10% vacancy rate to come up with my estimated cash flow of $1750 per month

I am Drew. This is my first post though I have been reading bigger pockets for a couple of years. A little history. My dad and I have 20 single family rental units (about 80% owned free and clear). We rent these for about 600 per month on average and bought them all for less than 50k by the time they were rent ready. We been considering multi-family to help grow/expand our portfolio and because we are having a harder time finding these houses. So with that being said, we found a 22 unit complex that they are asking $730000 for. Here are the basic numbers. Units - 22 Rent - 550 (1 at 490, 2 at 500 - old leases) Total monthly revenue - $11940 Expenses His financials from 2015 Advertising - $0 Electricity - $177 Lawn care - $180 Management - $0 Maintenance - $0 Gas - $61 Pest control - $80 Phone/internet - $214 Insurance - $525 Security - $58 Trash - $561 - includes units Water - $166 - includes units Total monthly - $2025 Financing for 20 years Down payment - 15% no cash required lender to use existing property as collateral Financed amount - $620500 Rate - 4.5% assumed. It will be close to this. Monthly payment - $3950 Total cash flow is 5900 per month based on his numbers. I assumed 900 per month for maintenance and I know my manager expense will be close to $1200. I also added in servicing the septic system at $50 per month since I know there is once of those also. Then I increased his numbers by 10% just to be conservative and put a 10% vacancy rate to come up with my estimated cash flow of $2418.5 per month. The property also has the potential to put a 23rd unit into rent. Which would help cash flow a lot. I think I could charge the tenants for water and Bill them for trash also to help lower my expenses. Any advice you guys have would be greatly appreciated! Thanks in advance Drew