All Forum Posts by: Ian E.

$60k for the purchase and rehab and each side is renting for $650 per unit.

Update: I have now had two months with the duplex completely full. Both tenants are on one year leases so we will see how it goes. While the first few months of rehab were slow, everything has. When going fine so far. Did anyone else on this thread end up purchasing? If so, how are things going?

If I can get a loan for 75% LTV then I should be able to change my ROI to 40-50%. The sounds crazy high but only works if my maintenance costs stay at 10% with a 5% vacancy.

Just received my first full payment with a full duplex (Novs payment was only with one unit occupied).  Numbers work out as:

Monthly Payment - 1300

Cash Flow - 867 (after management 10%, maintenance 10%, vacancy 5%)

ROI - 16.76% (this is after buying with cash)

I am going to try and season the property for the next 6-12 months and then pull my money out of the property. This should push my ROI considerably higher.

Property manager responded to today's question immediately and informed me that utilities will be covered by the tenant. With that said, I now have a duplex, fully paid for, both units rented, a great interior and "egg" exterior. Now I just have to cross my fingers and hope things continue to move in a positive direction.

13 Dec update:

Clayton contacted me to see if everything was going alright. This is the second time he has contacted me and each conversation has been helpful. It seems like Clayton is still trying to get his property management staff to rise to his expectations. For instance, in my most recent conversation with Clayton, he told me that both sides of my property were leased. This was great news but was a first heard for me. I immediately contacted my property manager to ask for the new lease. Evidently, the second unit was leased 12 days ago for the expected rent amount (which is great) but utilities were included(not so great). The reason this is a sticking point is that the property manager never asked me to accept a new tenant or if I was willing to pay for utilities. I now have to do some more research in the area but I am guessing that an Indianapolis winter will severely cut into the expected $650 rent for that unit (cut ROI from 16.6% to 13%).

I have two other properties, in other areas, and there is a constant conversations with the property manager when the unit is transitioning to a new tenant or undergoing maintenance (the rest of the year there is zero need for interaction, other than monthly statements).

I also received update pictures of the units and I am impressed with the interior rehab.  The house is very old so the exterior of the unit (especially the front) needs some real work before it is something I could proudly show off. I also received my first payment from my first tenant at the end of Nov (4 months after purchasing the duplex).

Although things have moved slower than advertised and communication with the property manager still needs some work, I am hopeful that we are over the rough patch and I will actually start to receive some cash flow.

Donnie N. It looks like a renter moved in one side on 1 Nov.  I am waiting for the initial payment and to hear if there is any movement on the other side. 

@Donnie N. I would definitely recommend you get the property inspected.  This will allow you to ensure that the rehab is done to a level that you are comfortable with and will ensure some accountability with the construction company.

Your potential cash flow seems way to high based on the provided rents.  Where you able to get bank statements or any documentation proving the previous expenses?

I was told that the property was set to rent on 1 Nov.  I will contact the team tomorrow and see where we are at.  I am hoping that things are going well but there are just issues with communication and transparency. However, when buying a property "sight-unseen" the lack of communication makes me nervous.