All Forum Posts by: Jon Keeney

Hi Claudia,

Welcome to BiggerPockets from a fellow Lancastrian (not too many of us on here).  I'm not familiar with note investing myself, but you've definitely come to the right place to learn more. Good luck!

No meeting tomorrow.  Next one will be in January.

@Robert M. Will do.

Thanks @Cory Binsfield . I'm going to meet with the seller tomorrow and see if there's any way we can sweeten this one (either by price, owner-financing, etc.). If not, I may pass.

Also, I appreciate the input on when to raise rents. I don't have experience in buying properties with existing tenants.

Thanks for the input @Cory Binsfield ! It's in a smaller town close to the one I currently live in. It's a lower income, blue collar area, but not a place I wouldn't feel safe by any means.

I think that the rents are too low, and even the renovated units could be bumped $25-50 based on what I'm seeing from competing properties, but great thought on posing as a renter to get additional intel. Because the tenants are fairly long term I was wanting to see if the property worked "as-is" without trying to raise the rents immediately.

The goal wasn't to buy a 5 unit right off the bat, but if the numbers work i'm trying to "be bold" and go for it. Thanks!

Thanks @Mehran K. ! I did forget to add lawn/snow removal on this, good call. Based on the competition I've seen, there would be some room to move rents up $50-$100 per unit. This property has 3-1bd, 1-2bd, and 1,3bd. The one bedrooms have been updated, and two and three beds need work. That said, the two and three beds are renting for below the 1 beds at this point.

Thanks for taking a look @Michael Seeker Unfortunately taxes are very high in this area, so that's accurate. I'm also just estimating insurance based on the numbers from the seller, but I will need to confirm.

It's a decent rental area, but not steller.

Also, great point on the need for commercial financing. I don't have much experience with that, so I'm going to be calling around tomorrow. I used 30yr fixed at 5% in my model, so I'll need to adjust that based on your input to a shorter loan term. Thanks!

Hi All,

This is my first post on here, but I've been doing a lot of reading on BP. What an awesome resource!

Anyway, I have a potential deal for a 5 unit property. The numbers are as follows:

• Purchase Price: $155k
• Gross Monthly Rent: $2,300
• Taxes (annual): $5,270
• Insurance(annual): $1,500
• Water/Sewer/Trash (annual): $2,100

I'm also budgeting the following:

• 10% Monthly Rent for Property Mgmt
• 10% Monthly Rent for Maint.
• 10% Monthly Rent for Vacancy

A few questions if you would be so kind to weigh in. First, am I missing anything here? Secondly, do my budgetary numbers look right based on the experience of others?

Based on the numbers I'm using, it's not cash flowing the $100 per unit that I was shooting for, but I've tried to be conservative in my estimates (and at least in the beginning I'll be managing it myself). The property is fully occupied by "long-term" tenants, but obviously that can change. Three of the units have been fully renovated, but two will need some work when they're turned over next. I'm budgeting $3-5k for each, mostly cosmetic. I'll also be raising rents on those units once renovated, prob. $100 each raising the gross total rents to $2,500.

Any input would be appreciated!

Jon