All Forum Posts by: Jeff Chen

@Caleb Heimsoth Thanks for the tip regarding closing costs. I'll definitely add that to my analysis

@John Leavelle Good point on including analyzing the correlation between the condition of the property and current in-place rents. I'll most likely be walking through properties I make offers on with an inspector and contractor in order to learn what they look at and get a better feel at repair/rehab costs.

Hello Biggerpockets,

I'm currently crunching some numbers for small multifamily properties throughout central Ohio and wanted to see if I'm on the right track when it comes to my underwriting assumptions. As an example, below is a duplex that I ran some numbers on:

Here are some assumptions:

A few additional notes:

- Utilized current in-place rents for the 2 units, which is lower than market rents for similar unit types within a 1-mile radius of the subject property based on a quick look on Rentometer.

- Seems like counties in Ohio charges RE Taxes based on Millage Rate times 35% of Assessed Value. I utilized the current Millage Rate times my proposed offer price of $100,000 for RE Taxes in my proforma. The subject property did not have Special Assessments on its RE Tax bill, so I did not include any in my proforma (should I include Special Assessments, to be conservative?)

Does my analysis and underwriting assumptions look to be reasonable, or am I being way too aggressive (or conservative) with my numbers? Would love to hear all your thoughts!

Thank you!

@Larry Fried Hi Larry, I'm looking to buy something that might require some surface level work (ie. new paint job, new countertops, etc...) but nothing too crazy like foundation or new roofing. Hoping to get a reputable property management company to manage the property while providing me with routine updates.

@Jonathan Castillo yeah absolutely, let's do it!

@Jeffrey Leung Hey Jeffrey, always cool to see someone from SGV. I'd love to hear more about your experience with KCMO. Which meetup do you attend?

@Dmitriy Fomichenko Thanks for all the tips! I've been abusing the @ function in this post LOL!

@Brock VandenBerg Hi Brock. Thanks for sharing your experience! I'm definitely still keeping the owner-occupied path open as an option. Easier to keep tabs on since I'm there and as you mentioned easier to get financing. 

Hi Logan,

Yes, investing in a small multifamily asset and living in one unit is definitely on my radar as well. Being able to live for free while enjoying cash flow and equity build-up would be an ideal situation. Just need to find a property that hopefully would be within a 1.5-hour drive from my work and not in an area where I'd fear for my life. 

Thanks for the warm welcome!

Hello Biggerpockets! Long time lurker, first time poster here from Southern California. Like many others, I've been binge-watching the podcasts and reading many of the blog posts here on this site.

I am pretty much a complete newbie when it comes to investing in real estate. However, I have had some indirect exposure as I've been working in the commercial mortgage industry since graduating from college in 2011 (mostly on the underwriting and portfolio management side). 

I've also dipped my toes in a little further recently by helping my parents buy a new house and renting out their old condo with the help of a management company.

Currently am looking for buy and hold opportunities in markets such as Kansas City MO, Greensboro NC, Columbus OH as properties in my local markets are just a tad bit out of my price range. 

Cheers!