All Forum Posts by: James Haffner

Also, I'm looking at the rental agreements, there all month to month leases. should this be telling me something or is that just how some leases go?

My Gf and I just landed our first multi unit property under contract yesterday! 

It's a fourplex that brings in $3035. We made a deal at $307,500 for the property. 

Were going to use the VA loan benefit that we have to purchase the property and live in one unit. The total amount that we are going to put down is $20,945.00 after closing costs, and bringing the loan below 300k.

After all the expenses are paid including capex, PM, repairs, vacancy, water,taxes  & insurance. I calculated a cash flow of $430.00 roughly. Witch would be a 24.65% return on the cash we put down. 

The carpet is at 6.91%. Let me know what you guys think.

Now that we have the property closed on though I now need to inspect all the financials, and do a home inspection. Does anyone have any suggestions on the documents I should ask for, other than rent rolls, and utility bills? 

Any suggestions on how I should do this & what I should be looking for, the questions I should ask? This is my first home purchase and a little nervous. 

I know as a renter not even having a washer and dryer hook up would be a deal breaker unless the rent was cheaper then everywhere else, or it was my only option. Fortunately its in a very low vacancy area, and rentals are high in demand. I can't get in to the property until inspection because there all being occupied. since ill be using a VA loan I'm definitely okay with taking some of that money I would have used on a down and investing it in to the building.

Unfortunately it looks like 2 units are in the basement and the other 2 are the 2nd story. so every unit will need a hook up, and I have no idea the costs of doing something like that. But Im thinking i can do the unit I decide to live in, and slowly move to the other properties. Ill do a full inspection of the rent rolls to make sure it's being rented out and staying occupied. 

Thank you! 

I found a great four plex, in a location that is close to schools, colleges, and a hospital ( walking distance) I did the numbers and found it would cash flow, according to the rent that was displayed on the pro-forma..something I would want to insect ( anything specific to look for when inspecting rent rolls?) But the property has no washer and dryer in any units. 

Its clean and taken care of, but it just seems strange that theres no washer and dryer. Has anyone purchased a property like this? Was it a good or bad experience? 

Thank you 

@Charliefitzgerald. I agree with you 100%. I love the old school way of thinking of things. Something we've kinda lost in time. But my Mom isn't in need, it's more a want.

 I definitely feel it is better to invest now & grow, then when there is a real need you can provide. 

Also my Fiancee is investing 1/2 & 1/2 with me to fund our travel adventures(and it doesn't seem like this will). As you can see I'm being pulled by 2 very powerful women here! ;)

Iv'e been looking in to duplexes also but I can't seem to find one that is going to meet both our needs, especially in the area there pretty overpriced for the 2 that are for sale there haha. 

I guess I really wanted to know if there was a way of having my cake and eating it to. It doesn't seem that way. Not safely anyways. 

Iv'e been looking for a rental home for about 2 months now. Iv'e found a solid place to invest at a price point I can afford. 

But, I have another issue. My Mom really wants a new place to live. Although, I tried shopping for a home for my Mom that would cash flow, in case something happened...she didn't like any of the houses I showed her.

She found a home in a great area with some of the best schools, highest income earning area, least crime, etc. etc. and to be honest, I want her to live there. But I also want an asset not an expense on my hands. 

So I ran the numbers and found that I could charge her about $100.00 lower then normal rent in the area & that will cover the mortgage, taxes, HOA, & PMI. I didn't factor in any property management or maintenance, because If theres an issue Ill be there anyways to help her out,wether it was my house or not. The home was built in 2013, so I don't foresee to much maintnance anyways.

The home is all updated also, Were having trouble finding places to push that value 10%, but I'm sure theres something I can do. 

I know this is all speculation, but the area has a forecast of about 5.7% home value appreciation in the next year. Assuming the market doesn't crash.

Positives.

- My Mom gets a place to live & the home still builds equity every month 

-I would only have to put down 10%. Leaving me extra money to look for another house in about 6 months or so. 

- I would be able to landlord for my Mom....a forgiving tenant I would say. 

- My Mom is a solid renter, clean, stable. 

- High appreciation, in a great area. 

- Once I make a grand entrance back in to the civilian world I could probably live there and split the rent with my Mom, and commute to school.

Negatives 

- if something were to happen ( like she decided to move) the house would become an expense to us. It would not cash flow. So basically this isn't a solid investment unless it appreciates. But I do believe even though there isn't a ROI there is some positives to the deal.

Its listed for 250k  I would offer 240k.

So, to my seasoned investor friends, would this be something you would considered as your first deal or is there red flags I'm not seeing? 

Awesome, great input. Iv'e been curious on how investors find great deals without paying cash for a house. I know a lot of people use letter campaign's & wholesalers. But I also know people are finding deals on the MLS every day.

I was frightened to make the offer, but I think if it gets declined or they come back with a counter it's still worth testing the battle front! If anything, I'm happy to have broken the "first offer" threshold...now it's time to move on to a purchase. 

I know my exit, and the number I need to be able to make a good investment. If I can't get out with that number then ill move on. 

I'm kinda curious on what people are seeing as far as list to sale price on REO, foreclosed, or short sale homes in Snohomish county? I just made my fist real offer on a house today that was foreclosed and sitting for a while.

The home started at 259k and slowly crept to 200k. It needs about 20-25k in rehab. 

I offered 140k looking for an out of 150k at the most. It's the bank so to me it's some large un emotional entity so I have no shame low balling them. But I'm curious if I'm wasting my time, and my agents? 

@Account Closed

Thank you for your response it's a huge help! 

Any areas you avoid like the plague? I know Everett has some area that aren't the greatest. When I was growing up it was Casino road. But that may have changed.

Hey everyone!

 I'm in the Snohomish county area looking to purchase a rental home. Mainly in North Everett & Lake Stevens.

I was curious of the expenses to expect when purchasing and analyzing.

I understand some investors pay for utilities and some don't. I'm really trying to avoid paying for utilities, or at least breaking it up fairly. How is that usually worked out?

Do you typically pay for utilities on a SFR? What about a multifamily home?

If so what's the average on the expenses that you see on your rental properties?

Electricity, Water, sewage, etc.

Also, what do you find the average rents to be? I've been seeing an average of $1.00/sq. ft.

Does the amount of rooms and bath have an affect on that?

Is there any features your seeing that really boosts the rent, or that people really want?

 I'm also looking at 3 bed 1 bath homes due to the price you can find them at. Does anyone purchase those and have success renting them out?

 Do they go for a lower rent due to the 1 bath?

Thank you again!