All Forum Posts by: Jeff F.

I will be there, and bringing a friend interested in REI

Welcome @Jim Lindstrom

This is a great place to  learn. I too am a map-maker by trade and have an owner occupied 4plex. I too live in cheyenne. 

There's a BP Meet up this week wednesday (ask @Cheryl Packham ) for details if you'd like to come, it's in the avenues neighborhood. 

Great to meet you, and feel free to reach out with questions. Im a total n00b too. 

well put Jerry. I have a feeling this is going to be pretty bad for Wyoming in a couple years if nothing changes. Extraction is drying up already, and those that stay alive will be much smaller. 

As you mentioned, Cheyenne & Laramie are a bit insulated, Laramie because of UW and Cheyenne because of the large federal and state government presence. 

@Jake Henrion

Maintenance at 10%.. Is this 5%repairs/maintenance and 5%cap ex?

This was my thought. Is this too low?

What kind of heat/hot water systems do you have? And how old/what condition are they in.  

Each unit has a wall heater (gas) and a tank hot water system. The hot water heaters are looking good with the exception of one - which is being replaced by the seller prior to closing. 

How about the driveway/parking space? Appliances? Flooring? Plumbing system/fixtures. 

There is no driveway, all on street parking. All appliances (stoves) were gas and looked good, and other appliances (fridges) looked newer. There are washer/dryer hook ups but washer/dryer not included. 

Plumbing system looked good, some fixtures need work (addressed in the inspection/are being fixed prior to close)

Painting and trim have all been updated. I plan on updating the bathroom in the unit im living in while im living there. 

Hi Everyone

I've been reading BP on an off for a few years, and finally took the plunge and joined a few weeks ago. My goals at this point are strictly cash-flow investing, and am looking to house hack for a few years as I'm single and have very low expenses. Here's my first analysis of a 4 unit, 2 house property. I will be living in one unit and renting out the other 3. Each Unit is 1 bed, 1 bath and the roof on the property is 3-5 years old. 

(I'm probably a bit late to the game but I'm under contract already and just wanted to check and make sure that I ran the numbers correctly)

Price: 220k

Rents: 600 Per unit (2400/mo without me, 1800/mo with me)

Mortgage: ~1250

Insurance: 185/mo, 2200/Year

Taxes: 125/mo, 1500/Year

Est Monthly Payment (PITI): ~1575

Utilities: Owner pays Water/Sewer/Trash (avg 150/mo in 2014), Tenant pays lights, gas, heat

Vacancy: (5%) 90/mo, 1,080/Year

Maintainence: (10%) 240 

I will be managing it myself while I'm living there

Expenses: 1575+90+240 = 2,055

Rent = 1800 while I'm living there, 2400 while Im not

Cash flow while im living there: (255)

Cash flow after I move out: $345/mo

Down payment: 7700 (FHA Loan)

I Plan on staying here at least one year to satisfy the FHA requirements and then will be looking for another multi family property to purchase.

After this deal is completed, I will have ~30k set aside (plus whatever I can save over the year, I'd guess about 15k) 

I'm not concerned about the negative cashflow at this point - I've got to live somewhere and I consider the $255 my "rent" for the year while building equity. 

Any thoughts/advice would be appreciated. I think I can raise the rents by at least 25/unit/mo to 625, and a gross monthly rent of 2500. With a bit of improvements and a rent increase over the time Im living in it (I enjoy this type of work in my spare time) I think I'll be able to add a bit of value to it and maybe get out of the FHA so that I can use it again.

Thanks.

@ricky segarra message me when you're in or coming to Cheyenne. Noob here but would be good to connect

im also in the Cheyenne Wyoming area. Market here is good. Closing on my first multi family in may

Hi BP Community -

Been following BP on and off for a while, and excited to finally have an excuse to join. After a few life changing events, I've finally been able to try house hacking and real estate investing. 

I'm currently under contract for a 4 unit, 2 duplex property (yes, it's a bit odd) in cheyenne where my plan is to live in the most beat up one and fix it up while renting out the other 3. Since this is not my full time job, i'm hoping I can have this process completed in 6-8 months. The deal is supposed to close may 6, and i'm planning on getting started right away. There's a fair amount to do but this is my second house rehab, so I've made quite a few of the mistakes before and know what to avoid. 

The plan as it currently stands is to try and get 3 deals done in 2016, including this one. Ideally, I'd house-hack all of these, but it's not a requirement. Once the repairs here are underway and almost finished, the plan is to begin looking for a duplex/triplex (or something that could be easily converted into one) and use an FHA loan on that to secure the property, and move into that as well.

I plan on using savings from my day job and side income streams to purchase future properties.

Im curious about legal structure (i've heard that it's best to have an LLC for every rental, then a holding company for all LLCs) which is not a problem where I live because they are very cheap to maintain.

I've got a solid team so far, and am planning on self managing these properties for the time being. 

Im looking to meet anyone in the denver/boulder/fort collins/northern colorado area, as well as any BP members from wyoming, and would like to talk with investors/hard money lenders or people who have used hard money lenders. 

Hey Joseph - Im in cheyenne as well. Currently under contract for a 4 unit building, will be living in 1 and renting out the other 3. 

I'd check someone in green river/Rock springs. Those towns are close and have some legal offices. I've got no one to recommend on that side of the state though.