All Forum Posts by: Scott Bastarache

Mike,

I am just curious if you manage your own properties and if you do, do you include an expense line for property management in your APOD. Having this line in there and paying yourself inevitably gets the 100/door much higher, yes?

Scott

The financing would in fact be an I/O with a balloon. I do not intend to keep that financing for the long haul. I am planning on buying the property with those terms in order to better manage the property, get the rental income where I want it to be ( currently below market rent) and then refi it to a conventional loan and wipe out the I/O note.

I realize now I forgot to put in the income of $1900 for coin op laundry and I also have allotted for vacancy . With all the numbers in there my actuall Gross income is $57,3k and Expenses are 34,3k. That was where I got the 23k.

I too liked the 109 per door with the pm added in. Just wasn't sure if I was cutting myself short depending on time needed to do so. But the thought of 2-3 hrs per week doesn't seem to be too daunting to take on.

Thanks for the reply.

I have an opportunity to obtain an 8 unit building where the owner is willing to finance. The building is currently 100% occupied. Here are the numbers:

Purchase Price: 249,900 financed @7% I/O for 30yr term
Gross Income: 61,596
*Expenses: 34,300
NOI: 23,036
Annual Debt Serv. 17493.

The expenses portion is where we are concerned. This number includes heat / hot water for all units. It also includes things such as advertising, taxes, insurace, property management, water/sewer, electricity, rubbish and snow.

We are also looking to serve as our own property managers for this building but are unsure of what sort of time that would entail. My feeling is that I am willing to take a little less on the per door profit to be able to get into my first multi-unit building with very little out of pocket expenses. I am not sure if the per door of $57 plus the additional $5,000/yr for prop man. is too little to make the deal worth it.

I'll end this with two questions.

1) How do the numbers look?
2) How much time needs to be allocated to effectively manage a property of this size?

Thanks,
Scott

Thank you both for your responses. I at least have a starting point to create offers to work with.

I have an eight unit building in my area that is for sale. I have been told that the owner is very motivated and will entertain any creative financing. I have a few questions regarding owner financing.

1) Can owner financing be done if the current owner has a mortgage on the property?

2) Is there a way to mix owner financing with conventional financing and still keep out of pocket expense down to bare minimum?

The area of owner financing is very new to me. I realize that it is done all the time, I just have not had the oppotunity to close a deal with it yet and am very interested to get this deal done. Any info that can be shared is appreciated.

Thanks,

Scott

Moeskii,

Just make sure you inquire wether or not the bank is going along with the short sale. I looked at a 2 fam the other day that was listed on MLS and the listing agent told me that the bank holding the mortgage was not easy to work with and wasn't happy at all about working toward a short sale. It appreared from the lack of cooperation that the bank was going to take the foreclosure appraoch.

There is no reason to waste your time looking at and placing an offer on a short sale if the bank won't even consider it.

Scott

We are on the same page....the only number I was going to work with was my offer.

I got your reply. Thank you for the info. I now have a little better idea of what numbers I need to get nailed down and understand exactly what my up front costs will be. I am still going to try and go foreward with the deal provided that I can get the numbers to work for me.

Thanks again for the insight.

Scott

Will,

I sent you an e-mail. hopefully i gave you the info you need.

Scott