All Forum Posts by: Drew McKinney

It's pretty common around here for the landlord to pay water and sewage. When the tenant fails to pay their water and or sewage bill here (which is quite often because it's billed quarterly.) They get the big bill for three months and just throw it away. Water company shuts water off, tenant moves out, and we're stuck with the bill to get the water turned back on.

Thanks for the replies guys! The owner pays water, sewage and trash there. The tenants pay electric and gas. The electric and gas numbers are common areas and I actually rounded these numbers up quite a bit to fill in the gap because he gave me a total expense number of 48k and It wasn't adding up to 48k with brief breakdown of expenses that I got from him. Sorry for the confusion I'll have better numbers by Tuesday. As for my motivation/goals. I think it's pretty similar to yours Brandon if I remember correctly. It may even be the same thing lol! I Would like to have 100 units cash flowing atleast 100 per door. I'm 10% there. I really enjoy/appreciate reading your guys feedback and analysis on these types of buildings. Thanks guys, Drew

Just looking for some great BP input on this potential 30 unit deal. I sent this guy a letter two years ago knowing that he had two 30 unit complexes. In two different towns. He called me and said he was really only interested in selling the one complex. A 30 unit place all 1 bedroom asking 550k. He showed me it and was in rough shape and in a rough area. I told him I wasn't interested in this one, but would certainly entertain the other place he had for sale. He wasn't interested in selling that one. About 6 months ago another investor/realtor advertised both buildings for sale at around 1.5 million. I called the owner again and he said they were both pretty much sold. Just talked to the owner this morning and they're both still for sale. I'm really only interested in the one complex with the two bedrooms apts and the numbers look something like this.... Two buildings 18 1 bedroom apts 12 2 bedrooms 2 bedrooms rent for 525 which is a little low for area. Depending on condition and size could be around 550 or 575 ( I haven't been inside yet) 1 bedrooms rent for 425. He says they're all occupied with waiting list. For the area and the price right now I don't doubt him, but we"ll see. Gross income is 160K Expenses Owner pays water and sewage 12000 yr 24000 taxes 4500 insurance 5000 common electric and gas 5000 garbage Asking price 800K He manages and does all the mtc so I'll have to come up with some numbers there for I won't be doing that. Brick and metal buildings, metal roofs Outside doesn't look too bad, will get inside on Monday. Using the "50% rule" this looks promising. We"ll see what the inside looks like. I have other smaller rentals in this town and they're always rented. Looking for feedback please Thanks, Drew

4 plex was purchased for 60k

Thanks for the replies,
Two years ago it was a little easier to find a "deal", but there are plent still around.
Bought single family townhome in a low income area for 12k put 1k into it and it rents for 500. That owner remodeled the entire thing and then lost it shortly after. All we did want paint and appliances.

Got another one shortly after that in early 09 for 9,600 dollars, put 10k into it and it rents for 800 a month. That one appraised for 77k last year, love that one.

Latest single family is under contract for 18,500 3bed 1 bath ranch, it's on a double lot. Going to put 5-6k into it and it will rent for 575-600.

1st one was a short sale other two were foreclosures.

Also bought 4 plex foreclosure in early 11, put 25k into it and it brings in 2170 a month, we pay for a dumpster, thats it. And the taxes are around 1800 a year.

Hello everyone,

Fantastic website and forum! Been reading and learning more for a month or so, it's about time I post something. I live in the Pittsburgh area and mainly focus on buy and hold. Good friend of mine partnered together in late 08 and have acquired three single families, triplex, and a fourplex. Closing on a five plex next month. Looking to eventually get into larger apartment buildings. We both work full time, looking to invest full time within a few years.

Thank you for all the great info on this site!

Drew