All Forum Posts by: Jack Srimani

Thanks for the missing expenses.
I appreciate it Mike. I am getting
to believe that it does not make sense to pay for utilities for tenants.
Regards

Hi,
I got the number for a property I have not seen. I plan to see this only if I can make real sense of the numbers. Need help.

Details:

Four Unit Duplex:

Rental Income 20100

Ad 333
Insurance 999
Tx 3841
Repairs 401
Garbage Removal 774
Water 987
Gas 2957
Electric 682

Total Expense: 10974

Net Income 9126

Hi,
I just saw a duplex today. The house is a duplex. It is thirteen years old house in a decent neighbourhood. Each of the house is renting for 650 dollard. There are four garages two of which is associated with the rental price of 650 dollar. Rest of each of the garage is rented out for fifty dollar each. Thus total income is 1350.The asking price of the house is 130000.

Here is the expense part:
With 20% down the mortgage amount comes to 655. (6.5 %)

The tax is 4200, the insurance is 300. The house is in a nice condition. So I do not know what expense I will incur here.

The owner pays trash and water which comes to 70 dollar per month. I would like to know if this is any good deal. Especially I am having trouble in estimating the return as I do not know what should be the expense value. Thanks.

Thanks Nationwidepi, Ralph, Josh, Rich and MikeOH for the genrous advises. I appreciate it so much for the guidance. As I said before this will be my first investment. SO I want to make sure I invest in the right one. So my question here is that if owner does not pay utility then does the rent come down or is it one can make good money in the investment. I personally do not like the idea of owner paying utility as I heard that there is always abuse of the utitlity service as the renters are not liable for overuse.

By the way my goal is to make some cash flow on my investment preferably 100 out of each door if possible.

Hi,
I am looking at a four unit property which was built in 1926. The owner furnished the following:

Sell price 130,000
Rent- 23640
Operating Expense- 11315 - (Gas 3852, electric - 4260 Tax and Insurance 3200)

Net Profit 12325

4 Units with varying rents

I have asked for the lease for past one year and verified the rent which happens to be correct. Now does the 50 % expense rule that applies to old houses involves heating and electric expense ? I am not sure. I am darn sure that the sell price is very high.
I would need advise to know what should be the sale price that would be appropriate for this home. Also does this deal seem any good. I am looking for potential first investment in multi unit rental. Thanks for your help.

Thanks David for your help. I do not feel well that they did not care to furnish any other form of documents to show rental activity. That does mean that they have something to hide.

Hi,
I am looking at a property and am requesting schedule E for income and expense statment. I was told that they do not file E. I am not sure as to how to make sure the past two years income and expense statement. I would appreciate any help in this situation. What other information documents do I need in order to come up with reasonably close cash flow statement. Thanks.

Thanks Mike for the advise. I appreciate it.

Hi,
I am in the process of analyzing a potentail investment of 4 unit rental. The place seems to be decent. The rental income and expense seems to be favorable. Howevever I am not sure whether the figures are correct. To ensure that what the seller is saying is real can I ask for last two years Schedule E that the owner is supposed to file to IRS
Also should I ask for other documents to get more information like vacancy etc. for my analysis to see if the investment will result in positive cash flow. I appreciate any advise on this matter.
Regards
J

Thanks Ralph and Tod for further clarification.