All Forum Posts by: Jens Nielsen

Hi Devon,

I also live in Durango, CO. Let me know if you want to connect.

Based on the purchase price and rent I can't see how you can cash flow on that deal. You need to consider mortgage payment, insurance, utilities (who pays what?), repairs and capex. Look at the calculators on this site, and come to your own conclusions. If you can get the property for under $200k then it may make sense. Sellers list their properties for what they think it is worth, not what the numbers support.

I'm working on deals in Albuquerque at the moment.

Jens

@Mike Hanneman wouldn't you end up with two closings and associated costs if I got financing for the purchase price and the a refinance after the rehab?

Hi,

I'm under contract to purchase my first deal, a 4-plex in Albuquerque, NM for $117K. It probably needs about $30K in rehab.

I have my own cash to purchase and rehab the property, and then I can do a cash out refinance in 6+ months. Essentially this would follow the BRRRR strategy.

I don't feel that I should go out and get investors for my first deal, I need to get some experience first.

I could perhaps do some other financing types, like purchase with cash and get a HELOC for the rehap to preserve some of my cash.

What would other members suggest?

Cool project, I'd be interested in how it goes.

Newbie here... I'm considering investing in Albuquerque, NM.

I found a 4 plex for $190K, the total monthly rent is $2100, annually $25,200

The unit is 1 of 5 in a complex, owned by a large investment company. I guess they are looking to sell all of them in the near future. The unit is 38 years old, but the current owner has improved them with new windows, roof, gutters, stucco and interior updates. 

While such upgrades don't leave much room for quick equity build up, however it also reduces the up-front expenses for getting the unit ready. I would also think that the CapEx would be reduced with these upgrades?

I have the financial statements from the current management company, and here is what I have summarized:

• Gross Income with 5% vacancy rate = $23,940
• Property Tax = $1950
• Insurance = $1500
• Maintenance and repair = $1000
• Utilities = $2100
• PM (10%) = $2394
• Other (Pest management) = $300
• CapEx (10%) = $2394
• Total Expenses = $11638
• NOI = $12302
• Mortgage = $8664
• Annual Cash Flow = $3638
• Cash ROI ~7% with 25% down payment of about $52,250
• Cap Rate 6.5%

What does people think about these numbers?

Pros/Cons on purchasing a property with significant CapEx improvements?

I have excellent credit > 800 when I get my score from the various credit agencies. I also get the same score on CreditKarma and on my credit card website.

However, I do have one closed collection account om report for $95. It was a medical bill that was sent to my old address after a hospital stay. I payed the bill when I finally found out it had been sent to collection. This account does not show up on CreditKarma.

Then I applied for a mortgage with a local bank, and they inform me that my credit score is ~680 to 700, thus resulting in higher interest rates.

From what I read I understand that collection accounts under $100 should be ignored on my score with the FICO08 calculations. I guess my question is; does mortgage lender user a different scoring method? Should I try a different lender to see if they offer a better rate?

Thanks for any insight.

Hi @Dale Hensel 

I actually used to live in Albuquerque. NE heights, close to the base of the Tram and the County Line restaurant.

Currently I'm looking and learning. No strategy yet.

I'll let you know the next time I make it to Abq.

Jens

Thanks for the reply @Russell Brazil. I see you are in Rockville MD. I actually used to live in Germantown MD and later purchased a house in Damacus MD. Made good money on that house when I sold it in 2007.

Hi,

I just joined BiggerPockets after reading Brandon's book on Rental Property Investing. I have no experience in real estate investing, but I want to explore the possibilities of making additional income from rentals with the ultimate goal of financial freedom.

I live in Durango CO, which has high property prices and a limited number of rentals available. When my wife and I first moved here 4 years ago, it wasn't easy to find a rental, and what we found was pretty expensive. We have since build a house. 

I think that it is easy to find renters in this market, however buying affordable properties may be difficult. I look forward to learn how to find good investments, and how to evaluate properties.

Thanks!

Jens Nielsen