All Forum Posts by: Joe Rodriguez

My first duplex

Vernon Terrace, Poughkeepsie, NY 12601

Monthly Income: Monthly Expenses: Monthly Cash Flow: Pro Forma Cap Rate:

 $2,350.00                  $1,573.88            $776.12                  19.08%

NOI Total Cash Needed Cash on Cash ROI Purchase Cap Rate

$15,649.00    $2,000.00           465.67%            19.56%

Property Information

Purchase Price: $80,000.00

Purchase Closing Costs: $0.00

Estimated Repair Costs: $2,000.00

Total Cost of Project: $82,000.00

After Repair Value $110,600.00

2 Family duplex. Each unit 2 Beds/1 Bath, 750 SF. Detached single

garage with shared driveway. Unfinished basement. In ground pool.

Separate Gas & electric. 5 year old roof, boiler, oil tank and hot

water heater. Analysis based on current market rental rates. ***See

other notes.

Down Payment: $0.00

Loan Amount: $80,000.00

Loan Points: $0.00

Loan Fees:

Amortized Over: 20 years

Loan Interest Rate: 5.000%

Monthly P&I: $527.96

Income

1 Unit $1,400.00    2 Unit $950.00

Other $0.00

Total $2,350.00

Expenses

Vacancy $70.50 Repairs $47.00

CapEx $117.50 Electricity $200.00

Water $25.00 Sewage $25.00

Garbage $51.00 Insurance $82.00

P&I $527.96 Property Taxes $152.92

Misc: Fuel oil $275.00

Total $1,573.88

Buy & Hold Analysis - 08/27/15 04:43:50

Financial Projections

Total Initial Equity: $30,600.00

Gross Rent Multiplier: 2.84

Income-Expense Ratio (2% Rule): 2.87%

Typical Cap Rate: 5.00% Debt Coverage Ratio: 2.47%

ARV based on Cap Rate: $312,980.00

50% Rule Cash Flow Estimates

Total Monthly Income: $2,350.00

x50% for Expenses: $1,175.00

Monthly Payment/Interest Payment: $527.96

Total Monthly Cash flow using 50% Rule: $647.04

House Size (sq. ft) 1500

Year Built 1941

Year Renovated 2001

Units 2

Stories 2

Property Type Small Multifamily (2-4 Units)

County Appraised Value 110600

Pool Yes

Heating Yes

Garage 1

Construction Wood

Roofing Shingle

Flooring Types Hardwood & Carpet

Wiring Condition Good

Plumbing Condition Good

Siding Material Wood

Other Info: Owner/ buyer will occupy 1 floor unit for 24 months. Refinance at after 24 months to pay off remaining balance on seller's note and then rent to tenant. This

house is 5 minutes from my job, so I'm looking at this deal as a means to

stop paying my current landlord 1,100 a month and put that money in my

investment instead. Not to mention the elimination of my 1 hour commute to

work.

Hey, what's up guys? I am very excited about my first 100% seller financing deal. 

Is there any way that I can attach a BP deal analysis PDF to this forum for some feedback? 

If attaching it is not possible, what data criteria should I post? There's a lot of data on those reports and I'm only beginning to get a clue about what I'm doing. 

Thanks 

Hey, what's up guys? I am very excited about my first 100% seller financing deal. 

Is there any way that I can attach a BP deal analysis PDF to this forum for some feedback? 

If attaching it is not possible, what data criteria should I post? There's a lot of data on those reports and I'm only beginning to get a clue about what I'm doing. 

Thanks 

Hello BP. 

I am so grateful for the collective knowledge that all of you folks bring to BP. Being a PRO member is absolutely worth every penny. A co-worker is selling her duplex and I have expressed interest in purchasing it. She is absolutely in favor of a lease with purchase option. However, the home is owned free and clear and I would like to propose seller financing instead as an alternative. Like I said, I'm a newbie here and this happens to be my first opportunity at a zero, or low money down deal but I am not sure how to present the deal for your opinions. What pertinent details should I provide here in order to analyze the deal? 

@Brandon Ingegneri - Nice! I appreciate your very good points. Thank you 

My fiance and I are discussing marriage within the next year or so. We're also discussing beginning investing in real estate with a focus on single family flips, or multi-family buy and holds for the first few purchases. In essence we're planning on establishing retirement via real estate. 

My spider senses tell me that the majority of your opinions would reject any premarital joint venture. However, I believe, as with virtually any subject matter, some of you may have valid reasons to disagree. With so many investors articulating their partnership terms of agreements to suit their unique goals and needs, is it unreasonable to think that we may be able to structure our agreement so that it would address many of the inherent concerns our unmarried status brings to the table? Please comment. Thanks. 

I want to express my appreciation for all of your comments and insight. A few of you asked some questions I'd like to respond to. I'll begin with Lynn. Grace is absolutely very hands on. In fact, her tenacious DIY demeanor is just one of the many things I admire about her. When she sets her sights on a project, she works. She is also phenomenal at landscaping and building awesome gardens, stone walls and rock water features. With the exception of her amazing rockscaping, I would say that we're both at similar skill levels in departments such as renovating and repairing kitchens, bathrooms, cabinets, doors, floors, windows, wood stoves, etc.

Steve: I agree with you 100%. Fortunately we will definitely be putting in sweat equity side by side, so there'll be no resentments on that note. With regards to your last comment, I'm with you on that point as well. 

Neil and Matthew, what can I say? You guys make irrefutably valid points,which I happen to agree with wholeheartedly. Once again, thank you all so much for your help. 

Hello BP. As you can very well see by my profile and the discussion topic I've posted here, I am a spanking new member. The discussion I'm going to attempt to induce is one that I'm certain comes as no surprise to many of you. In fact, I suspect that it may very well already be an existing topic somewhere here in BP world and I just haven't searched well enough for it. In any event, I will state my claim and if anyone should feel like participating with some feedback, or refer me to an existing forum or post, I'd greatly appreciate either. 

I'll begin by first establishing that my fiance and I have a very healthy relationship. Although we have had many our fair share of occasions where we simply had to agree to disagree on various issues, we always find some middle ground. Secondly, after 2+ years of "talking about flipping houses"we have finally decided to purchase a property in the next few months. 

The issue regarding harmony, or the seeming (and hopefully temporary) lack thereof, came about when we began to define our criteria for our first deal. I became aware that she has some pretty romantic ideas about our joint venture and seems to be somewhat more emotionally invested. I, on the other hand believe my perspective is much more strategically calculated and financially analytical. What prompts me to believe we have somewhat different concepts is that she recently stated, "I feel like this whole thing is just about the money to you. You seem to want to contract everything out and get in and out as quickly as possible. What about us working together with our hands?" 

Apparently she was under the impression that our first purchase would be this beautiful single family Victorian we were going to hold and restore to historical grandeur. Meanwhile I was thinking all along to kick things off with a 2-4 family unit with enough cash flow to help keep the wheels in the machine turning. I'll spare you the rest of the details because I've written more than I intended already, so I'll spare you. 

My point was meant to provide a little background or context for this question: What are some business tips or advisories you could offer a couple that assume the inherent differences between us and a strictly professional partnership?  

Hello folks. I'm new to BP and I'm currently researching the purchase and rehab of my first multy-family property. I was discussing offsetting utility expenses with a friend tonight, and he suggested that I consider installing electric baseboard heating in each of my rental units in addition to individual meter service and electric tankless heat on demand hot water service. My opinion is that while putting the tenant on the hook for their own utilities (above the tradition gas & electric) relieves me of this category expense, the baseboard heating and hot water service will scare off prospects and create longer vacancy periods. I belive would essentially have to offer rent below market rent rates to compensate for the more expensive utilities. Lastly, I live in Orange County NY where this is not customary to renters. What are your opinions? 

Hello - my name is Joe Rodriguez and I live in the Hudson Valley area of New York, namely New Windsor/ Newburgh. I am a retired police detective that is in the research and education phase of small multi-family investing. I work full-time at a local private college and still have plenty of time for my fiance and I to build our business. I am looking for mentor relationships/ partnerships with local investors, realtors, contractors, etc.