All Forum Posts by: Heath Watson

@Heath Watson, what part of St. Louis is this in? What is the sq footage of each unit. I own a one story triplex, no basement, no washer and dryer hookups, 450 sq ft units, and get $675 per month. It is in the North Hampton neighborhood. I made the units really nice which is easy/affordable to do with the units being so small. They rent pretty easily since most one beds are going for $800+ in the area. If the property is located in STL county, you could have the tenants pay for water and trash. That's common to see in the county and I do that personally on some duplexes I own/manage in STL county. In the city it is more common for the landlord to cover sewer, water, trash, and lawn maintenance. 

 Off market? How many days on market?

Don't knock 1/1 units - They are very easy to keep rented, and fairly recession-proof (in the sense that they are a low cost housing option for 1-2 person households and there will always be demand for them). 

Your numbers seem to be right at the 1% rule, which remains difficult to achieve in most markets with an ongoing supply and demand imbalance. 

 The answer to the question "Is this a good deal?" will vary from market to market. So you really need to ask yourself (and research) What else can I buy in this market for around $120k all in? And there's your answer: If there are much better deals out there in the same price range, so buy one of those instead. If not, snap this one up with confidence!

I'll send you a PM with some more info. 

Are you cash flowing? Do you believe in the growth of the area? If yes than you have a good deal 

@Lana Lee, I tend to stay away from 1 bed units as well, unless it's too good to turn down. However, I still calculate for vacancy so I don't have to reach into my pocket again for that particular property. 

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@Heath Watson Go in with the higher amount and have the seller cover the closing costs. Less money in will magnify the rate of return. For every dollar spent on the property you should think about the rate of return. For example, if you put in new windows will you generate a higher rent for it and better long term tenants? 

@Heath Watson Hey Heath, I always have a general inspection as well as termite/WDO. Depending on the setup of the home (city sewer or septic), I may make some exceptions to what I do from the outset. I just dropped $850 total for a general inspection and a WDO on a house in FL and ended up backing out during my inspection period. Glad I did and the $850 is a small price of due diligence to pay to avoid getting in over my head on a project. 

Typically, my strategy is to get the general inspection done ASAP to determine if I need to bring out other specialists in areas like Electrical, HVAC, Mold, etc. You definitely want to ID those big ticket items ASAP to give yourself time to either decide if it's worth continuing in the purchase or to negotiate repairs/credits. It's all easier said than done, and of course, each individual inspection costs $ and is an appointment that will have to be coordinated with the listing agent and sellers so it is never quite as easy as some gurus make it sound.

Are you under contract on a property or still on the search?