All Forum Posts by: Jeff D.

I'm about to close on my first residential multi unit building ( buying via LLC). I'm planning on self managing. I've heard about self managing owners creating alias cards or introducing themselves as the "property manager" using a pseudo name for identity protection. I'm guessing this is to protect your privacy in case you have an issue with a tenant? Anyone doing this? If so, why? If you self manage and you don't do this, why wouldn't you?

@Alan Neely Thanks for your reply. I’m actually a facility director for a npr and pbs station. Facility Director wasn’t an option under the career selection for the profile.

I was thinking Cash for the simple fact of not paying interest. I paid off my home for that same reason. I’m learning now though that the right amount of debt isn’t so bad and can further my funds for additional properties. So yes, now I’m interested in funding 60% of the deal through a loan.

The property is not listed with a broker yet. The owner is now willing to issue me a 20yr term loan at 5% with a down payment of 113k. I feel this is very favorable for me? Since we wouldn’t be going through a bank he says the $12,000 transaction fees are built into the asking price.

With his figures if I do the deal his way I’m looking at a net cash flow of $5087 seems like peanuts.

I’m thinking of offering 125k down

Borrowing. 195k

Offer would be 320k

Thus making noi $25,552

Loan 20yr 5% $15,432

Cash on Cash. $10,120

That seems better but is that doing good? Offer too low or too high?

@Erik Hatch all units on their own meter except one of the first floor units is on the common meter and electric is included with that unit.

@Bjorn Ahlblad the seller allowed me to inspect the basement mechanics. The boiler is brand new. The units are heat included. The floors are painted battleship gray and the electric panels are labeled nicely. He put brand new oversized gutters on the building and refurbished the two upper balconies. He also installed a new sewer line to the street and put in new sidewalks. The place seems solid. Parking may need some blacktop but that’s about it. I can tell that when he repaired things he didn’t cut corners. Two units in the building are recently renovated. There is one basement unit that only rents for 525 (opposite mechanical room and laundry) One bedroom comps on the low end with heat included run about 700 on the low end.

@Bjorn Ahlblad paralysis by analysis. It’s been my issue since I left the gate. I’ve looked at several deals and waited too long to make make a move..

@Erik Hatch 5 units

Rent totals annualized $44,250

Expenses Annualized $18,968

NOI $25,281

Asking is $350,000 (5 units) all 1 bedrooms

Not much room for value add. Building is solid.

2 units have tenants that have been there 20 plus years ( their rents are about $100 per month under market rates)

I can maybe raise rents a bit for $2,400 more a yr

I can pay cash. What should my offer be?