All Forum Posts by: Flavio Zanetti

My partner and I are looking into this investment property... Initially, it looked too good to be true, but even after finding some hiccups, I still believe it will be a go - thoughts, comments, suggestions, concerns are highly appreciated! 

More details:

Asking price 600K - 6+ multi unit property.

• Gross Income: $93,300
• Total Monthly Rent: $7,775 (includes heat and hot water)
• Gross Expenses: $35,229
• Water and Sewer Expenses: $2,922
• Repairs & Maintenance Expenses: $6,511
• Insurance Expenses: $6,215
• Gas Expenses: $4,562
• Electricity Expenses: $946
• Taxes: 9432
• NOI: $53,406

Additional information:

Most rents are below market.

Gas furnaces and electrical systems were updated less than 5 years ago.

Roof is 10 years old.

Thanks in advance!

Flavio

@Mike Hibbs let me try to help by sharing my personal experience regarding costs from up here in Massachusetts, which is not very significant to you but it might help anyways, here it goes:

Full bathroom: $5-12K (depending on size, fixtures, stone, ceramic, etc.)

Kitchen cabinets: $250 - 350 / linear foot (midrange cabinets)

Appliances: 2-3K (midrange)

Drywall and finish work: $50-75 / square feet.

Now, if you are gutting the entire place to replace the electrical and plumbing, costs will be definitely be much higher.

Plus you will need to check the HVAC, roof, lawn, driveway, garage, etc.

Keep us posted on your findings and results!

Flavio

Late in the game here but this is a great discussion indeed. 

I see how people willingfully have decided to purchase a negative cash flow for income tax bracket reduction and/or a gamble on appreciation - these should be the only exceptions...

Curious if you have closed the deal @Matt Messer ?!?

Flavio 

Kyle J. Beat me on his response with the Commonwealth of Massachusetts docs on abandoned vehicles in a private property. This happened to me before and the car was not worthy anything and I ended up spending a couple of hundred bucks... Flavio

Interesting thread... In 2013 it was already difficult to find positive cash flow properties here, now 2 years later, it's even more so; hence, the reason why I decided to start investing outside the state... 

Since you are paying a PM, I would look at other parts of the country and this forum will be able to help you there.

Flavio

@Pete T. could you please share more info about your Virginia Beach rental? 

Location

Distance from beach

Size

Weekly or nightly rentals

Etc.

Thanks,

Flavio

Thanks @Ann Bellamy - signed up!

Flavio

@John Blazi let me know what you find out... I am in Mass and good deal FC properties are not easy to come by these days...  

Flavio

@Andrew Katzman these condos look nicely done - great job man!!!

I might use you for my GC needs in the area next time...

Flavio

Originally posted by @Erin Legler:

@Mark Severino I'm working with a buyer now that is looking for a quad-plex under 400K. The only thing that I was able to find for him are properties near UCF.  There were others near Apopka and Kissimmee as well.  The buyer wants to live near civilization, downtown Orlando, Winter Park etc so we have switch our search and looking for land to build on.  It's getting tricky with the zoning, tho.

 I lost a couple of opportunities mid last year since given a very busy travel schedule and some of those I regret considerably since they were exactly qud-plex units for ~400K and a few duplexes for 185K. 

Much tougher to come by these days for sure in Orlando...

Flavio