All Forum Posts by: Colin Schleifer

My thanks to both of you. 

@Shane Moynihan I will look into Unicron, thanks!
 

@Breandan Garland @Shane Moynihan I am also looking into investing in this area and wondering if you either of you have had good luck or experiences with local property managers you'd recommend?

@Breandan Garland @Shane Moynihan I am also looking into investing in this area and wondering if you either of you have had good luck or experiences with local property managers you'd recommend?

Disclaimer: There are many ways to analyze properties, so this just my opinion.

If this is purely an investment opportunity and not a house hack, you may find it difficult to find a lender willing to do an LTV of 80%. I think it more likely you'll have to put 25% down. I also did a very quick look at rental comps in the area and I think you may be being overly optimistic (I am no where near this area though so if you are comfortable with your numbers then trust them). I estimated a total gross monthly rent of $4,000.

I'd also factor in at least 5% of the monthly rent each for capital expenditures and maintenance.  With the age of this building though you may even want to increase those percentages a bit.  I'd set aside 8% for maintenance and 5% for cap ex for a total of 13%.  You'll also need to factor in vacancy rates, which can vary from area to area.  Try 5% of the monthly rent if you're unsure.

I do not know insurance rates for that area but I'd guess around $1,400 annually.  Assuming the utilities are metered separately, the landlord still likely pays for water and sewer.  I guestimated $60-$70/month for those costs.  Then you also include taxes, which I rounded up to $11,000 annually (ouch!).  Finally, I always throw in a bit extra for snow removal and landscaping costs, usually $50/month.

I estimated an interest rate of 3.875%, spending $30,000 on reno, with the above math and the assumption you are going to self manage the property.  

After all that, my math came out with a cash on cash return of 14.82%.  

Everyone runs their numbers slightly different so you may be more or less conservative based on your comfort level and experience.  I hope that is helpful.

Looking at a triplex in southern NH. The spread between duplex and triplex quotes here for annual insurance premiums is huge. Has anyone had good luck finding a reasonable triplex policy, sub $3,000?