All Forum Posts by: Mike Wallace

edit: insurance is 4k per year. seems low?

I own a 4plex one street over from the property in question.

I met with the owner the other day at the property. There is 20 units total, 9 in one building all 1 bed 1 baths rent for around $500. 8 in another building that are efficiency units, there is 1 bathroom for every 2 units (shared bathrooms) rent is 400-450. Then there is 1 duplex and one single family, those 3 units rent for $500. Very interesting property to say the least.

Owner pays all utilities, they are not metered separately. He gave me online access to all the utility accounts as well as insurance accounts so I could see his actual expenses. All utilities were around 20k per year, insurance 11k, taxes 12k.

he currently only has 15 units rented. He claims he is super busy and does not have time to run the property anymore, he has a property manager in place but they are ripping him off and putting in BAD tenants. He wants to get out ASAP.

The property is being poorly cared for, the tenants that I saw were not the type of tenants anyone wants, drugs etc.

My 4plex around the corner is all 1 beds and I get $560 per unit with them paying all utilities excluding water. Good solid tenants with jobs and decent credit.

He owes 420k to the bank, I dont think it is worth it for that.

What do you guys think?

Ok this is all good info.

For some reason I was under the impression that I had to show enough income to cover the buildings payment without factoring in any rental income.

thanks for the response. I will look into that book.

I only have 6 months experience with my 4 unit.

How much experience are they usually looking for?

I own a 4plex and want to move up to a 10+ unit building.

I have great credit and 2 years professionally prepared tax returns earning 75k+

Can the expected revenue of the property that I want to purchase be calculated into the debt to income % to qualify for the loan?

Looking at a 20 unit. Landlord pays electric, it is all on one service.

what would an estimated cost be of installing individual panels/meters so each tenant can get electrical service in their name?

about to close on a loan.

Do these closing costs look average?

246k 30 year fixed 4.125% (getting a $5800 credit for taking a higher rate)

Origination charge, $1,025
appraisal fee 380 (and i had to pay the appraisal company $400 when they did it?)

Mortgage insurance premium $5905
Title insurance and lenders title insurance $1,030
gov recording charge $68
transfer tax $2365
escrow account deposit ( summer taxes and insurance ) $4123

toal closing costs $9500ish.

I own a multi, and have been looking at picking up a sfh. when analyzing sfh's what cash flow number should i be shooting for?

im in Michigan.

So if i dont have it in 3 days you think i should post the notice?