All Forum Posts by: Savannah Leigh

Owners called me. They want out. NOW. "we want to be able to forget we own it"....

Nice 2 unit. 3/1 each side. rents 650/side. Mortgage payoff is 65k or 640 monthly with tax/insurance bound. After management and 10% maint it's easily a 100% cap rate deal (make each year what they pay me in assignment fee).

How do I describe this deal?

One easy deal....6k gets you a 2 family turnkey property. Passed by city of Wilkes-Barre, (soon) fully rented. Mortgage payments about $400/mo. Taxes/insurance another $200. Management 200. Maintenance (basic coverage package) $100. Leaves approximately 600/mo NOI. that's 120 percent Cap rate ! (7200 on 6k invested).

Pm me your email, i can send you a few different sheets that were shared w me. I am working on building my own as well and will send that when done

for rentals, i use a quick thumbnail. Well two

first, 40k in total finished value for every 1100 in income. Assumes taxes/insurance under 2k.

second.

ggross rents

minus all landlord hard costs taxes, until is, etc

minus 10pct management.

10 pct vavacancy.

20 pct mmaintenance.

50 to 100 dollars per unit per month profit.

bbalance is what pays mmortgage.

mmortgage calculator.org 20 yrs 6.5pct.

this is the finished value for a rental

minus repairs and holding cost and such during repairs

this is the max offer

instant 20pct equity b/c you made no down payment. Its all financed.

wworks in my area for a finished cap rate of 10 to 15

i have a duplex under contract. 25K contract, 30kk offer price

Half rented, other half ready

1200/Mo gross, pit I under 400

Net after maintenance/vacancy/management cost and piti of 400

Passed by city no major issues other than a porch roof needing rehab in . 5 Yrs

yet no serious bites on it. Why?

i

overall, am finding tenants increasingly fickle

too much supply of units for rent

damn. Lol

iI

motivated/ desparate seller

some houses are only worth that

someone bought it for 40pct val

II had a half double like that. We kept lowering the price,and did get a tenant. But friends told me to do . Things

1 offer a free month special or move in special. That way your monthly rent, and therefore the income valuation of the home, stays the same.

2 if you must lower rent, take it off market for a week or so, delete all old ads. Try to make it harder for people to know you're dropping rent.

3 if asked why dropping rent...the answer is you had a deposit on it, tenant fell through, and you want to get it rented fast.

Just my 2c

Except. if they look like a jerry springer contestant, you dont want em as tenants...at any price

personally i prefer this formula
rent
-10pct management
30pct maintenance
-all hard costs paid by landlord
-some monthly per unit profit...i use 50
=balance.

whatever that covers in mortgage is value. i use 6.5pct, 20yr note

minus repairs and carry cost during repairs. and transfer costs maybe

remainder is the max offer

the 20pct down is my equity

IIf its blue or green, you can make it clean

if its black, gotta break your back

meaning remove all surfaces touched)

Pm me. Flips out here are thin....avg 3/1 price ceiling 120k

So locally i focus on turnkey rentals.

i live near wilkes-barre pa. Units 10 to 20kk per door. Rents 600 to 800. Raw cap rate exceed 25pct

After management/maintenance/vacancy cap rates still exceed 15pct avg

i also have good ddeals in fla and hear the mid south is good too

solid blue collar area. Simple homes mostly built 1890 to 1920.