All Forum Posts by: Irving Moorehead

 Thanks for replying Jaryn. Everyone is on a month lease so it should be pretty easy to move current residents. Planning will be key and like you said I need to make sure I have plenty of reserves set aside. I want to make sure that I make a fair offer based on its current condition. I want to make that I'm netting at least a 10% profit after rehab. How do I get that number?  

Thanks I appreciate the feedback. The current owner purchased it in 2020. 5 out of 6 units are currently rented. Tenants are on a month to month. The current rents range from $450 (efficiency) $600 (1 BR). The current median rent rate in that area is $875. I've estimated $80k in rehab work to force equity and increase the rents. I want to offer $375k but no more than $400k for the property. It's hard finding comps because this was a 4 plex that was converted into a 6 plex.

 Can you elaborate. I see potential if bought at the right price. Value can be added to increase rent.

 Hi Mark! I do own 2 single family properties. This will be my first commercial offer. They're asking $500k. Rents currently total $2705. There's one vacancy. This is a 6 unit apartment building. I've been playing around with different potential offer amounts. I'd like to make an offer that I'm comfortable it. I"m anticipating budgeting $75,000 to rehab the building. My biggest expense is a new roof. That would help me increase the rent to current market rate and bring in $4,800 per month.   

 Thanks for responding. It's one single building. They turned a 4 family into a 6 family. It's s legit 4 single BR and 2 efficiencies. I've done my research on the rents in the area. They're definitely priced below market. It's in need of some updates. I'm using the tools right now. I wasn't sure if I was I was putting in the correct information since I got a negative cash flow.  

 That make sense. I didn't think about that. Rents are definitely below market. Current monthly income is $3,155. I can increase rents and bring in $4,800 monthly. I can increase rents but I'll need make upgrades and replace the roof. I'm estimating about $40,000 in updates and rehab. I see potential but the numbers aren't making sense to me right now.

 This property is in the city of St. Louis where they provide trash service. The seller listed an annual cost of $3,024 for trash service. I just divided that number by 12. It’s a 6 family unit. 

This is the property I need help with. 

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Good morning, I've been a member of BP since May 2023 but I just upgraded to a pro membership today. I have a few single family and dupIex buildings. This will be my first commercial property if my bid is accepted. I need help evaluating a multifamily property (6 units). I'm in St Louis, MO. I've been working on this since yesterday but my numbers don't make sense. I'd like to make an offer before COB today.