All Forum Posts by: Gernot Bucheli

@Dennis M. Yes, those are just two numbers. I was hoping to present the calculations report on the rental property. But it does not have a link where it can be sent via email or to those in BP forum. How do I do that?

@Ricardo Gomez. Thank you Ricardo. It’ll be small as far as profits go but it’s still an income and a stepping stone for better things. See you around Ricardo.

@Jan Kerr. I just your profile and your website. Sounds good. Talk to you soon

@John Teachout. Thank you John. Yes Juneau is a very nice town. My family and I really enjoy it here. We love the winter months as well as the summer months. We try to leave Juneau during the construction months though. Skagway is another great city.

@Brad Jenkins thank you Brad. I’ll just do that. Thanks again

@Jan Kerr Thank you. I would like to start out in Juneau and yes it is very slow with a lot of investors. So I’m a little fish on a small pond with a lot of bigger fishes. However I did find niche here. That niche is mobile homes. There are trailer parks with a lot of mobile homes abandoned. The problem I’m facing with that is the park’s manager is slow in getting things done.

Otherwise I’d be in Yakima Washington where it’s booming in population. My mother lives there and has a lot of rental properties. She wants to retire and have me take over her business. It’s a no brainer on the surface. But there are a lot of moving parts that needs to be considered. Thus a mentor would be great.

@Bjorn Ahlblad and @Jaysen Medhurst Thank you for your replies. I will post the numbers on BP analysis page and show you what the numbers look like. I really appreciate your guys's help. As of now I'm not going to pursue the 5 plex. Like Jaysen said there are too many red flags. Mainly on the VA loan. First the VA loan is for primary resisdent only; and second they allow 4 plex or smaller for residential, not 5 plex and up for commercial. So I would have to get a conventional loan with 25 % down. That's not going to work. Thank you again.

Hello everyone. I am new to real estate investing. My goal is to buy and hold for residual income. Residual income of at least $10k per month to start out before leaving my job. I don't have any money for investing so I'm going to do wholesaling. That's a suggestion anyway for newbies I hear often. Then move into flips, eventually into BRRRR. That's the game plan anyway.

I'm a late bloomer. I moved to Juneau Alaska in 2005, bought my home in 2009 liking the city a lot. Then in 2015 married when I was 53 to a young, beautiful and smart woman. There is a saying, "Behind every successful man, there is his beautiful and smart wife rolling her eyes." I'm not successful YET. But she is still rolling her eyes. We have a 2 year old handsome, viverant son. I drive the city transit bus full time. As of now I have a 3 day weekends, and every 6 months there a shift bid. I desperately want to quit my job. There is no room for improvement or advancing. I go to work only for a paycheck and benefits for the family. Nothing more. So I'm hungry to learn about real estate investment. As Grant Cardone would say, "Be hungry as a starving dog running after a meat truck."

I'm looking for mentor. Perhaps this forum is the place to go for mentoring. So far I looked at a 5 plex and the numbers do not work. Thanks for Bjorn Ahlbad and Jaysen Medhurst for their help to analyze the property better. So, I'm not going to pursue this property. However, it was a great learning lesson for the future investment potentials.

Thank you everyone for allowing to me in the family of BP. I'm looking forward to hearing from you and one day to meet you too. Have a productive and 10X day

Thank you Bjorn for your message. I did respond to you this morning an hour after you sent your message by using my cell phone but it disappeared since I was distracted and did not get back it till now. It disappeared somewhere in cyberspace. Now I'm using the laptop. I'm still trying to maneuver through this BP's dashboard. I'll get it one of these days. 

Let me answer your questions. All but one unit is rented. That one unit can be rented out for $1200 a month. I was hoping to hold onto is for long term. I did meet with the selling agent and asked more questions about the 5-plex. She thinks that 75k will not cover everything. It's more like 100k. And the numbers I had written down were not correct either. They needed to be higher which means the ROI is lower. Lower than 2%.

The building works now in its current state. However the cash flow is in the negative by $268. In order to do this, I would need to raise the rent by $200 to each unit so the income is $6000 a month and then I can save for the repairs. 

I'm going to contact a mortgage loan originator who did my mortgage for my home. The goal is to see what kind of loan I can get with AlaskaUSA versus where the mortgage is now at Wells Fargo.

That's it for now. Thank you again for your help and suggestions. I look forward to hearing from you again.

The current owner needs to sell this property. He is asking $420k for it, has a outstanding VA loan on it for about $335k, and will take $370k minimum. I'm also VA qualified so I can assume the outstanding loan and just pay the minimum difference which is $35k. Each unit rents out for $1000 per month. And the mortgage payment is $2100 a month. So far it sounds great. Then comes the monthly expenses. I used BiggerPockets Four Square Method and the cash on cash return is 3.82%. Pretty low since is estimated rehab are about $75,000. All but one unit can use a remodel that can increase the rent to $1200 each. The math doesn't look good for now. But in 5 years and with all the rehab completed the five plex value will increase. Is my thinking going the right way? Any suggestions?