All Forum Posts by: Jeremy Swanson

@Nathan G. Cash flowing 171/month while setting aside 172/month for Cap Ex. I have about 13k reserves.

@Chace Fraser VA should cover that. At least they did last time I used the VA loan.

@John Warren The home is just outside of an Air Force Base in Alamogordo, New Mexico. Being that it's a military town, I should be able to get decent tenants if I focus my advertising on the local Airmen. The previous owner stated that vacancy wasn't much of an issue because the price of rent and it's location. The 4-plex is on a corner lot of a moderate traffic intersection. He said as long as I put up a sign, it rents very quickly. What do you mean deal "upsides" I was thinking of putting in some simple home automation to raise rent. Thoughts? Also, 3 of the 4 units have swamp coolers which the current tenants are fine with. However, refrigerated air is more desirable out in these parts so if I installed them, I could raise rent $100-150 a month. Got a quote from an AC guy of about $2200 a unit.

Hey everyone! So over the last year I've been educating myself hardcore on RE and I think I'm ready to finally jump. I found a decent deal on a 4-plex and wanted to get some thoughts. I am a Army veteran and I am going to be using my VA loan. I anticipate being able get into the deal for 0 out of pocket cash. All four units are rented out with leases on 3 and the 4th is month to month. Being that the va loan requires owner occupancy, I would be giving the month to month tenant a 30 day notice to vacate. The home was built in 1940 but I have checked it out and looks pretty decent. Roof was replaced 5 years ago and looks nice. 3 of the 4 water heaters are under 2 years old. It's definitely not the taj mahal but is very livable. After negotiations, the seller just submitted his final over. Heres the deal: $154,900 purchase price and seller agreed to cover all closing costs. Monthly expenses Mortgage: $840 Taxes: $50 Insurance: $225 Flood insurance: $60 Vacancy of 5%: $107 Cap Ex: $172 Total monthly expenses: $1454 All 4 units generate $2150 3 units rented out with me in the 4th generate $1625 1st year cashflow: $171/month After I move out and can rent out the 4th unit cashflow: $696/month What do you guys think? Have I missed anything?