All Forum Posts by: Jonathan Barreneche

It’s a multifamily. A house with a 3/2 bath with a modified section being turned into a 1/1 economy unit. And then a duplex in the back. So it’s a triplex that was modified into a quadplex. 

Wanted to give an update, and I guess patience is important! Got a property that's pulling me $615 a month cash-flow ( not including a 10% management expense ) since I will be managing it myself.

Hey Richard, when doing my cash flow analysis I have ran the number at the current rent, and at market rent. And at $220k < I’ve  found two properties that are triplexes. There are no quadplexes. All the rest were duplexs. 

Hello,

So I am looking for a multifamily home in the Tampa/St. Pete area that is under $220k. I am doing a VA loan, so I have to live in the property. The goal is to house hack the home. My parent will also be living with me as I need to keep care of her, and she has told me that she will cover the rent cost of the unit that we are living in. So I will be able to run numbers with full possible rental income as all units will be producing cash, even the one im living in.

I have looked at all 75 listing in the past month and a half that fit my aforementioned criteria, but there is no luck. I can rarely get a monthly cashflow of $0.00 dollars. The average home has a cashflow of -$150.00 after I run my numbers with the BiggerPockets rental property calculator. I have even ran hypothetical numbers, where I buy the house for dramatically less than asking price. Or even increasing the rent price by a dramatic amount. Still no luck.

These numbers not working are really starting to bring down my morale, and Im just stuck on what to do. I will be forced to move by middle of January, and I want to find a house to own rather than rent from someone. Is it just a bad time to be buying a house? It seems to be a strong seller market in this area.

Is it a sound idea to go rent out a $500 room until houses come down in price? Or do houses follow the same idea of time in the market, beats timing the market.

Open to any and all advice/opinions

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*This link comes directly from our calculators, based on information input by the member who posted.

Im looking to buy this property. Current rents are $710 for each unit. That comes out to a total rent income of $2130. The property is not profitable at this price. Craigslist and Rentometer show me that the average comp for a property like this are $900. I knew it felt too cheap, but what im worried about is why has the property management team that currently run the property not increased the rent to match the rest of the neighborhood/area?

Im stuck on if i should go through with the deal as im so hesitant on if $900 a unit is possible. The current tenants would be inherited and are on annual leases. They end on 28th of February 2019. Is my $10,000 set aside for repairs, painting, seeding lawn, fixing doors, etc a good reason for me increasing the rent? Do you or should you explain your reason for increasing the rent? Or should my actions of fixing up the property be a good enough reason? Is it even a good enough reason?

This is a triplex, and the only one available in the area for anywhere near its asking price. This is why im pushing for a way or a reason to go through on the deal. Please let me know your opinions and what I can do. Thank you

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*This link comes directly from our calculators, based on information input by the member who posted.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Hello folks. So I am interested in the following deal. At these numbers the property would be about neutral in cashflow and COCROI. What could I do to make these worth it? Each unit is renting for  $710, but according to all the multi-units of the same type ive found on Craigslist, they are all renting for $850-$950. What is the correct process of increasing rent when you are inheriting rentals? The renters have all been there for over 3 years. One of the renters is section 8. Any numbers that I should mess with? I also plan to spend a couple grand in pressure washing and painting the house. ?There are also 3 doors inside that need to be replaced. Other than that everything looks decent. I want this deal to work due to it being a triplex, but I need some more clarification on the best route to take here. Thank you! 

PS: It is a VA loan on 0% down. Will be living in one of the units when the lease ends in February. Dad will be living in it with me and has agreed for the sake of helping me out, will cover the cost of rent that I would charge a normal perspective tenant.

Awesome works and the property looks great. Could you possibly give me a breakdown of the costs? Specifically the exterior and interior paint? Whats your cash flow looking like? How much are you saving for vacancy, capex, repairs, mangement fee, etc? Did you put down new floors? As for the HELOC, if you find a property that makes sense on the cash flow, then i don't see why you shouldn't go for it. Try to hit $200 cash flow and 12% cash on cash return. Cap rates are getting squeezed tighter and tighter but anything above 5% is acceptable. Anyways, property looks good!

Not a broker or agent but the “lesser” areas of Tampa are going to be Sulphur Springs, Temple Terrace, Temple Crest area. its interesting to know though that the appreciation rates on this area are going up at over 6.5% a year on average since 2001. Maybe it’s gentrification, maybe it’s people realizing that an area is what you make it. 

Hey guys and girls,

So when using rental property calculators what % do use for the expenses and growth monthly?

I’ve been using

5% vacancy 

10% repair costs 

5% CapEx

10% management fees

I assume all utilities will be handled by the tenants. I use the following for yearly expenses and budgeting

3% annual Rent increase 

3.5% annual home appreciation 

2% annual repair cost increase

And I close it out with a final 9% sale/closing cost for when that time comes.

So any numbers exaggerated or understated here? Any help or advice is greatly appreciated!