All Forum Posts by: Account Closed

Originally posted by @Joe Hughis:

@Account Closed  - I think we need further clarification on what you mean by "separate units" as it relates to them having a "common kitchen" and "common living area".   Do you mean this property is set up more like dormitory that has four suites connected to a common area?  If this is the case you may run into challenges with obtaining conventional financing for this property since the property could be classified as special use.  

It is one large building with four separate "front doors". Two of the doors lead to staircases that lead to living areas and the other 2 open directly to living areas.  Within each of the four front doors/units, there is a kitchen, living area, 3 separate bedrooms and 3 separate full baths. There are a total of 12 bed rooms, 12 baths, 4 living areas, 4 kitchens, 4 separate front doors. Hope that helps.

I am not sure what this set up is considered name-wise. When I went to undergrad in Austin Texas this was a very common set up for students. Each of the individual bedrooms were individually leased. That is my plan here.

Originally posted by @Todd Dexheimer:

Is the rent $450/unit/month ($1800) or per bedroom ($5400)?   it is per bedroom, 5400 total/month possible

What is the current property tax amount and based on what sales price? This will go up based on your purchase, so ask the county how they calculate the amount you will pay.. . Property was built in 2013, taxes as of 2014 and 2015 were $3,582     I will need to investigate how it will change 

Insurance costs? Utilities you pay vs tenant pays? Also you need to account for maintenance of around 10% or more, cap ex of 3-5%, Management, city licensing and inspection fees, accounting/admin, property management, leasing fees, vacancy rate.    Currently  owner pays utilities. I will be property manager for now. 

Also, yes you may be able to get a personal loan for this purchase with 20% down or less.    This is what I am hoping for, searching now. Any rec's on banks?

For zoning the easiest way is to call the zoning department in the city and talk with them about what you can do with the property and what steps you need to take in order to expand as you plan.   Thanks- will need to do this.

I am looking at numbers for my first deal. The property is near Oklahoma. It is a multi family property with one building. It has 4 separate "units". Each unit has a common kitchen and common area. Each unit also has 3 bed rooms with a full bath. Total: 4 units, 12 rooms in one building. My plan is to rent to college students on individual leases. Rent: 450/month Asking price ~ 340,000 I'm working on obtaining pre approval for 20% down. Hoping to get a conventional fixed mortgage. Is this possible? I have my personal mortgage and will not be living in the property. I have toured the unit and am comfortable with overall structure. Will need to have detailed inspection of course. Can someone point me in right direction for pre purchase further due diligence. The property has a large attached grass lot that I hope to one day expand to. Do I just call the city and ask about zoning? Thanks!

@Cody L.

@Chris Martin

Do you like commercial or multifamily?

Bump. If the goal is 30,000 /month rents and 3 million in property.. what would the debt side look like? Assuming 20% down for properties (maybe I could do better with owner financing?) How does the 50% rent expense rule take into account mortgage debt?

Thanks Cody- love your thoughts and happy for your progress. What do you recommend to accomplish my goals in terms of what type of property and financing to look for? Would love to hear any and all thoughts/ words of wisdom!

Thanks for that. The big picture really helps. Do you believe in that scenario? It seems obtainable if the right properties can be found. I'll need to research those possibilities you noted. Does the 50% rule account for debt servicing? What debt does it assume?

Hello all... can someone who has done it, is doing it or has their own blueprint help me to visualize the actual steps to achieve the dream. Goal: produce a monthly rental income of 15,000. Ideally within 10 years by age 40. W2 Income: 300,000+ annually Current reserves: 140k cash liquid, 150k in various retirement accounts (willing to look into investing in real estate within the account), 100k home equity Debt: 300k personal residence, 14 years remaining at 2.625% —------------------— I'm open to SFH, multi unit or commercial. I fear that SFH would be insufficient and lean towards multi unit. There are various deals around me nearly satisfying the 1% rule priced around 300-400k. I'm assuming I would put 20% down for first property. I can save about 50-60k (maybe more) per year. If I pick up one 4-6 unit complex per year at the 1% rule will this get me where I want to be? Can someone help me to see the real plan and numbers? I'm suffering from paralysis by analysis!!! Thank you all and looking forward to opening my eyes and getting to work!

Thanks all. Greg- the property may or may not really be in Tx ;-)

A bid was accepted today in OO status. We will see what happens. I'm ready to report fraud when it is listed in 6 months LOL

hi all- i'm looking at bidding on a hud home in Texas and wanted to run numbers by you guys. the property has been vacant for almost 2 years, just came on market and is about to leave OO bid status. If it clears, I'm interested in proceeding as a fix and flip.

Built in 2012, 2100 sq ft, 3 bed 2 bath + an office, 2 car attached garage in a good neighborhood with the best school district in the area which includes 3 towns and about 100,000 people.

Property sold in 2012 for 252,000. I'm not sure how it sold so high

Those tenants got foreclosed on and property has sat vacant ever since.

First Hud listing currently around155,000.

Comps in area sell for 98-105 p/sqft.

This property is water (pond view) but not access.

Property REEKS of urine and pets. Previous owners had multiple dogs that scratched base boards, doors and used the floors as toilets. Needs deep cleaning (1200)

70-80 % of remaining floors need removal + replacement (carpet and laminate). Both bathroom floors and laundry room area floors are fine (tile). (12,000 ?)

House needs entire interior paint plus all ground level trim work, doors and closets need repair/repaint. (5,000 ?)

Front door framing and probably door needs replacement due to previous owners possibly kicking it in. one large window is cracked and needs replacement. (1,500)

Garage door needs repair, possible replacement.  (1,000)

Water meter has been disconnected and needs reinstallation.  (2,500)

Needs some new appliances (1,500)

Misc. touch ups- (3,000)

Since utils are off, I expect to find some other issues but for now I'm estimating repair budget at 30,000.

Holding+closing+realtor fees: about 10,000 if I fsbo in the end.

Using potential sales price of 210,000 and 70% rule with 40,000 in costs I am around $107,000 MAO.

Am I doing something incorrectly? I don't see HUD accepting the offer but I can always try. I was considering bidding around 110,000. If someone thinks they can come in at list and make it work then more power to them IMO

Would love to hear any and all thoughts. thanks!