All Forum Posts by: Jared Larry

Thanks Luke, that's the plan.

I wouldn't think that 40 year old heaters would be able to meet code standards.  A few new window/wall units would probably do the job for less than $2000

http://www.nashville.gov/mc/ordinances/term_1999_2...

16.24.470 Heating facilities.
B. Residential occupancies. Dwellings shall be provided with heating facilities capable of maintaining a room temperature of sixty-five degrees (65°) Fahrenheit in all habitable rooms, bathrooms, and toilet rooms based on a winter outdoor design temperature of fourteen degrees (14°) Fahrenheit, in accordance with Appendix D of the 2000 Edition of the Standard Plumbing Code. Cooking appliances shall not be used to provide space heating to meet the requirements of this section.

@Luke G. 

I put 3.5% down on a FHA renovation loan. The sales price was $100,000, and my total loan, including repairs is about $122k. In addition, I estimate spending about $1000 on cosmetic updates for each unit.

P&I = 621    Property taxes, insurance, and mortgage insurance bring my monthly payment to 980.

Current rents are $850.  I inherited two month-to-month renters who haven't had rent increased since 2011.  I am allowing them to stay for another 2 months while renovations are being completed and I don't have to pay the mortgage.  I expect to be able to rent each unit for somewhere between $600 (my estimate) and $750 (my realtor's estimate).

Using $100/month for Capex, 10% for management (self-managed), 8% vacancy, and 6% repairs (everything will be new), I expect to be break-even by June and cashflow between $400-$600 when I move out in year.

You are right about there not being a lot out there.  I began searching for a duplex to owner-occupy in April and finally closed on a property a few weeks ago.  During that time, I saw very few properties worth taking the time to analyze.  Most were overpriced or in terrible shape.  If you haven't already, I would strongly recommend working with a realtor who can send you multi-unit listings as soon as they hit the market.

I'm not sure about "ideal", but here is the triplex I purchased.

http://www.zillow.com/homedetails/134-Dellway-Dr-N...

It has three 1-bedroom units (one of which will be converted to 2 bedrooms) on a single floor, is on a quiet street, and is on the edge of the East Nashville gentrification.

Best of luck in your search!