All Forum Posts by: Erin K.

Awwww - anyone have thoughts??

Just wondered if anyone has a copy they would be willing to part with. 

Thanks!

Erin 

If I were in your shoes where I live, I would take $70k of your money in the bank and put 50% down payments on two $70k, nice, cash-flowing duplexes, along with 10 year mortgages for the remaining $35k each.  Deploy that money to make you money on a monthly basis while your tenants also pay down the small remaining mortgages, and then have them owned free and clear in 10 years. Then once you have that up and running and are comfortable, consider refi'ing the duplex you have now and invest that into another property.  

Good luck - sounds like you are off to a great start!!

We just sold a SFR and are in the identification phase doing a 1031 exchange, so need to move quickly. There is a 16-unit property we looked at several months ago, and I want to make sure I am running the numbers correctly to value it. We have 40 doors currently - one 4-unit and the rest are duplexes, commercial property, or SFR. This is the first apartment building we have considered, so I am not confident on running valuation analysis like I am for smaller multi-families.

Here are the details - I would LOVE input from others!  

Almost all units are the same, but some tenants have been there for a long time so have lower rent than newer tenants.  Rents range from $325-465/month (crazy variation, I know....)

Here are the numbers from Sch E for 2016

rents: $73,990

cleaning: $510

insurance: $4,868

repairs: $1,364

supplies: $3,770  (the current landlord keeps a room in the basement filled with couches, beds, end tables, etc, that he allows tenants to pick from if they need such things, so I suspect this is part of this number)

taxes: $3,784

util: $10,844

Additional benefits to this property are: good location for the type of apartments; all brick building; new roof within last few years; had a fire in one unit several years ago, so all units were re-done and brought up to code by the insurance company. Current owners have maintained it very well. I do suspect it is priced a good bit above its actual value, but I want to figure out whether the value I have come up with is the same as others looking at it. I have been using a cap rate of 10, as the area where it is located has a pretty high ROI.

If any other info is needed, please let me know, and thanks for reading this far!

Erin 

Thanks....I was looking at a Hilltop property. LOL  A co-worker of my husband said that Westgate in Hilltop is an area that is being revitalized, but I don't know what his authority for that is.

I saw a post on here a while back with practically a street-by-street rundown by someone familiar with Cleveland ranking the various neighborhoods. Anyone have or seen a list like that for Columbus? We are looking at some properties and I would like to get familiar with the neighborhoods that are up and coming vs. war zones and the in-between affordable ones.  Thanks! 

My daughter is a senior graphic design major who excels at business logo design. Let me know if you would like her contact info. Good luck!

@Parker Stiles - I would love to see the "before" pics of the house you linked to, and any numbers you'd be willing to share on the project.  Beautiful job with the renovations. 

Just curious if anyone here with apartment buildings has installed vending machines, and, if so, what kind, and was it worth the hassle?  Do you have to maintain it or did/does a vending company take care of it for you?

Thanks!

This discussion is interesting to me....I have been involved in 100+ property sales in Ohio and have never seen anything but the standard "not aware of existence of lead-based paint." I have never heard of it being tested for per a purchase agreement or brought up as an issue at all. Sounds like it is a much bigger deal in some of your other states. I do understand the importance of the potential problem but find the regional difference interesting.