All Forum Posts by: Jennifer Soltis

That is a great idea, I partially did that this morning after reading your comment. With the Airbnb @ $175 a night for 50% of the year is $31,900 which makes this 48% CoC return! This is not even counting on the other areas for income and decreasing of expenses.

Thank you,

Jen

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Hi all,

My realtor has this property for sale and I was thinking about purchasing but as it sits has no COC return. They wanted 500k and have come down to 475 and I was looking to offer the 425K and at this price is not profitable. Total of 7 units, a duplex, mobile home, and 4 other individual cottages. A 3 car garage which is just storage for owner. All are on one meters (water, sewer, gas, and electric) and owner pays all utilities.  Now, here is the upside potential....

First, we can put double pane windows in all the units.We are east of Cleveland Ohio and living on the lake is quite cold and all the units are single paned windows. This would decrease gas bill.

We could also add more insulation and possibly put in Honeywell app. controlled thermostats.

Next, the lakefront unit will now be unoccupied d/t the owner is living here. This is only a 2 bed 2 bath cottage but could be Airbnb'd. Would advertise year round but would only expect it to be occupied April through November.

There is also an RV pad with 50 amp hook up that can also be advertised for rent. And room to add 2 more spots.

We could rent out 2 of the garages to tenets for a little more income.

Lastly, would have to look into getting the water metered for all the units as well as the sewer costs. 

The tenets are month to month and all utilities are paid by owner and as one moves out we could get that unit ready to Airbnb. Having half of the units to be rented out with full time tenets will help in winter months when other units are waiting to be Airbnb'd.

Thank you all,

Jennifer

PS. In Brandon's book The Multifamily Millionaire, he stated, "but offering $400,000 on a $500,000 fourplex that's been on the market for sixty days is completely reasonable." on page 164.

PSS. Could I go as low as $375,000 in this market? 

*This link comes directly from our calculators, based on information input by the member who posted.

I did not realize on the "Tools" tab you could add the fixed expenses, so yes the were low. I adjusted and the cap rate is down to 10% which I am good with for now. As for the management I will do myself to start to get to know how the business is run from the bottom up. And as time goes on and I add more homes to my portfolio management and cleaning people will also be added as my group of contacts increase in the area. Thank you for the help!

Hello,

I am new to this area of investing. I am looking to purchase a lake front property that is listed in my area. I have put the information in the Tools, Airbnb and not sure if it is a good deal or not. It comes up with a 20% property management fee. Who gets this portion, is it Airbnb with there hosting fees? But anyway, the PP is 370k and potential income is 90k a year with Operating Expenses of $25,949, NOI of $63,050 and cap rate of 17.05%. I have purchased Avery Carl's new book and still waiting for it to come. Thank you inadvance.

Jen

I thought I had financing in place. They called me today and apologized they thought the properties were 75k a unit and they do not lend on anything less. I told him if they were that then they would not cash flow. I don't know they must have had a few bad deals.  Thanks

Thank you those were my thoughts as well. I really don’t want to get that risky with the first one but I am working full time to cover those “extras”

Hello all,

I am looking to purchase my first multi-unit and not sure if I should go big or go half way to get the momentum going. The smaller 3 unit is 15.58% CoC. Closer to home and in the city. The 6 unit is 19.84% CoC and would take all my reserves but this would grow quickly to reinvest in the next one which has $1,000 a month cash flow. And it has a commercial front that needs rented. This is in a more rural area. Both properties will have no showings until an offer is accepted. Thank you in advance for the feedback.

I live in Lake County, which is east of Cleveland. Lake county is a very good area and I am now starting to purchase for the long term. I have been "flipping" for several years now but realizing the need of depreciation and a continuous stream of cash flow. SFH to cash flow $500 a month in nice areas and if they appreciate over the next 10-20 years that will be a bonus. But no appreciation in the greater cleveland area.

I had a tenant send $475 cash in the mail! Now I have an account for them to automatically deposit rent into my business account. I am the only person on the account and they can't take money out of my checking but I also only leave a small amount of money in that account. Hope this helps. Happy investing!

I used hard money for the initial loan to purchase property and credit cards for the fix up. I'm now in the process of paying off the credit cards with the funds received from the sale if the property. The cost of using other high interest rates to fund a good deal is worth it if your numbers are good! Happy investing!