All Forum Posts by: Jason Lee

Hello Bigger Pockets,

I am about to pull the trigger on my initial offer and would like some feedback on multiple points of my offer before I do. (i.e. financials, analysis, CMA, rent rates, legal etc). It is a 4 plex within city limits. Built in 2009, 3/2 units with driveways, granite counters, tile in common areas new carpet in rooms, fresh paint, all appliances stay including W/D in each unit. Listing price is $185,000, CMA revealed 4 identical 4plexes that closed for this price in the last 1.5 years. Average rent in this area is $750. Currently all units are vacant. A few other identical properties have a current vacancy listed at $695. At first glance, all I have to do is change all the locks and tenants can move in (after initial walk through, actual inspection to follow $600).

The financing will be 30 year FHA with 3.5% down. According to my closing cost estimations it will be just under $11,000 if I close on 1st of April. Annual taxes approximately $2,500. RCV insurance premiums (including Hail/wind and storm) will run anywhere from $5,708 to $7000 depending on deductibles. It is not in a flood zone.

NOI: $17,200; EGI: $32,100 Vacancy Rate: 5% Cap Rate: 9.3% - 10.38% GRM: 5.47 GIM: 5.76 NIM: 10.76 After Tax IRR: 42.87

My intent is to purchase this in my name, create a land trust, deed it to land trust with myself as the beneficiary, and the land trust will be owned by my MS LLC, after 1 year of ownership. Strategy: buy and hold.

Any thoughts, questions, or advice is much appreciated. And yes I plan on living in one unit for >1yr.

To get to this point, I have ran the numbers on about 74 properties made 1 other offer over the last 3 months with currently no rental properties in my portfolio.

Newbie,

Jason

I am putting in an offer for a 5plex multi-family residence and the sellers P&L statement for the previous year shows 100% occupancy. I requested that my broker ask for an Estoppel Certificate be attached to the purchase contract. He says that if required by the lender, they will generate the request of the seller. I want this certificate on top of the copies of all leases for my piece of mind. 

Would like to know what those with experienced in this area would recommend. Thank you

In analyzing a potential REO property, I came across this in the MLS listing comment section. "Buyer responsibility to tap-in to City Water/Sewer service which is available" does anyone have experience with dealing with the same issue? I would like to include this expense in my flip calculator as accurately as possible so as to not underestimate this potential problem. Thank you