All Forum Posts by: Dean Suzuki

Hi,

I'm a new member from Orange County, California. I am a beginner buy and hold investor. I started investing in 2009 and purchased properties in Southern California, Phoenix, Dallas, Atlanta, and Memphis.

I am looking to learn more about real investing and am focusing on buy and hold.

Question: I have invested in SFR and want to learn more about investing in multi-family. Any suggestions appreciated.

Question: I have also reached my maximum 10 Fannie Mae loans and am looking for any advice on going beyond the 10 loans.

My long term goal is to generate enough passive cashflow to exit the rat race.

I have started listening to the podcasts and reading through the forums.

Thanks for your help

Dean

Hi,

I am looking at purchasing 2 four-plexes (seller's stipulation that buyer must buy both at the same time). Each four-plex is going for $129K in Phoenix. Each building has four two-bedroom/one bath units that are 720sqft.

I did some rental analysis using the BiggerPockets SFH spreadsheet. We determined that each unit could rent for $500-$600/mth. Assumed $550/mth which turns out to be $52800/annual (8 * 550 * 12). I assumed a conservative 25% vacancy loss (1 unit out of the 4 vacant each month, could be a lot less). Gross income = 39600.

For expenses, I determined:

Property taxes: 1500/yr

Insurance: 3095/yr

Maintenance: 5760/yr (assuming $480/mth, 12%)

Water/Sewer: 3000/yr

Property Management: 3600/yr (assuming $300/mth)

Advertising: 150/yr

Total Expenses: 13410

NOI = 26190

The catch is that each building will require extensive rehab. I'm estimating 30-40K for each building.

I'm in contract at 129K per building. But, just got back the inspection reports with all the items that need to be fixed. I am getting quotes on the fixes. I'm thinking of asking the seller for a credit/price reduction to help offset some of the costs of the fixes. I'm not sure how to calculate how much should I ask for? Or when will the fixup costs make this investment not a good deal? The comps on other 4-plexes that have sold are at $159K on average but they appear more fixed up than this one. My agent says that this 4-plex will be much nicer after my fixes (I'm taking this with a grain of salt).

The seller said that they had multiple offers on the property so I am wondering how much to push back.

This is my first multi-unit purchase and appreciate any suggestions.

Thanks.

Thank You All for the responses. I have learned a lot. In response to earlier post, I'm not sure if the seller collected security deposits or if the tenants were in place and they "forgot" to collect the security deposits from the prior owner. The seller acquired the property in 12/2012.

I'm going to try to get the leases or put a contingency in there about the leases to check if a prior owner collected last month's rent and security deposit.

I learned a new term, estoppel certificate. I'll need to research this as well.

Thanks.

Hi,

I am negotiating on the purchase of a four-plex in Arizona. The seller just countered my purchase offer stating that they don't have any of the security deposits for the tenants in the four-plex.

I haven't received any of the leases yet so I don't know what this security deposit amount is.

Does anyone have suggestions on how I should respond? I am thinking that I could counter for a price reduction in the amount of the total security deposits. The seller's agent mentioned that they had multiple offers so I am concerned about pushing too hard on the counter. Or, I just could take over the burden of the security deposits.

Do you know if its possible to go back to the person/prior owner who the tenant signed the lease with to try to get the security deposits?

Any suggestions are appreciated.

Thanks.

Hi,

I have a SFR that I am renting out in Marietta, GA. I am looking for a property management company. Do anyone has any recommendations in Marietta, GA?

Does anyone have any suggestions on criteria to evaluate property management companies?

I currently have All County and am going through an eviction and I haven't been very happy with their responsiveness and its not been a good experience so I am looking for a new PM company.

Any suggestions are appreciated.

Thanks.