All Forum Posts by: Jon Peterson

I am looking to flip a duplex that currently has no garage. If it were a SFH, I would add the garage in a heartbeat, knowing that it would be tough to sell without one. However, the person who ends up buying this duplex will almost certainly be an investor. This investor will mostly care about how much rent he/she can charge, and to what class of tenant. This property is in a B+/A- neighborhood and finding renters will never be a problem. Of course renters would prefer to have a garage, but I don't think the price garnered for a duplex with no garage will be drastically lower than one with a garage...meaning the potential buyer might not be overly concerned with the lack of garage? I could be totally wrong, and I'd love to hear some opinions. Will prospective investors looking to purchase a duplex value it enough to justify the cost of the addition? The overall numbers on this one will (hopefully!) shake out pretty good either way, I'm just trying to maximize if possible.

It will likely be a 25-30k cost to add, but will not increase our ARV nearly that much. We may need to end up putting in a parking pad for 8K, meaning our garage would then only cost 17k-22k. Thanks in advance!!

Hey guys-

I am flipping a house this spring, and am looking for a reliable handyman looking for some work. I have 6 rental units and have done some minor rehabs, but this will be my first gut and my roster of workers could use some help! I have solid connections in electrical and plumbing, but looking for someone who has basic carpentry skills (install trim, take down walls and re-frame walls, etc), installs floors (hardwood and vinyl), minor painting, basic tile work, things like that. Any suggestions are much appreciated!

Hey Guys-

I am looking for a tax professional to help me prepare my taxes in 2017. I am looking for someone who has experience working with people with rental properties. Any advice is greatly appreciated. Thanks!

Hey Guys-

I am looking for a tax professional to help me prepare my taxes. I am looking for someone who has experience working with people with rental properties. Any advice is greatly appreciated. Thanks!

I just bought a rental in a C+ neighborhood in Saint Paul, MN. I am getting it ready for rent, and it needs a new stove, washer, and dryer. Anyone have any places they recommend in general for these types of things? Do people have decent luck with craigslist? Not looking for anything too high end...just functional and reliable!! Thanks!

Hi all-

I recently purchased a duplex from a unique seller, and was able to buy it at a good price that gives me some options. I am thinking about buying and holding and also thinking about flipping. I know I am supposed to have a game plan and exit strategy going into the purchase...I was planning on buying and holding, but the thought of potentially flipping is looking better and better!! I am wondering if there are formulas or calculators people use to guide them here? (i.e. minimum cash on cash ROI to keep as buy and hold,etc) Here are some numbers:

Purchase price: 70,000

25% downpayment, 4.25% interest, 30 yr mortgage, PITI comes to about 475$,

Total cash invested upfront: $21.5K

BUY AND HOLD NUMBERS:

The property is in what I would call a C to C+ neighborhood. We have already had tenants who we have background checked and seem like very solid tenants come through who want to sign a lease. Rents would be 850$ and 800$.

1650$/month in total rent

100$/month in water/sewer/trash

8% vacancy=132$ (VERY strong rental market here, vacancy will likely be lower. Had 50 inquiries in 48 hours of posting the ad)

10% maintenance and capex (should this be higher? building in pretty good shape overall)=$165

Monthly net cash flow= 1650-100-132-165-475=778$

*Note: I will be managing myself, so no management fees yet.

FLIP OPTION:

House would likely need about 10K in rehab, putting my total cost at 31.5K

I would list it for 135K, would be happy selling for 130K.

I am a real estate agent, so no 3.3% commission to sell, so figure cost of selling will be 3.5% total. 3.5% of 130k=4,550

So, total proceeds from sale would be 130K-4.55K=~ 125K.

paying off the 54K mortgage, and factoring in the 31.5k out of pocket, leaves a profit of roughly $40,000

Am I calculating this right? Hold time would likely be 30-60 days, so factor in another 1,000$ in holding costs. One other factor is that there is a retaining wall that will need to be replaced in the next 5-7 years. This will likely be a $15,000 job.

A little background on me. I have 2 duplexes that I manage, so I have a little experience in Buy and Hold. I have never done a flip before, so I'm not sure if i'm analyzing properly. Part of me wants to take the money and run as I'm not 10000000% confident in this neighborhood. My long term goal is to have enough income producing properties to be able to live off the cash flow. Any help is much appreciated! Feel free to let me know if I left something out or if you have questions. Thanks!!

Hi all-

I recently purchased a duplex from a unique seller, and was able to buy it at a good price that gives me some options. I am thinking about buying and holding and also thinking about flipping. I know I am supposed to have a game plan and exit strategy going into the purchase...I was planning on buying and holding, but the thought of potentially flipping is looking better and better!! I am wondering if there are formulas or calculators people use to guide them here? (i.e. minimum cash on cash ROI to keep as buy and hold,etc) Here are some numbers:

Purchase price: 70,000

25% downpayment, 4.25% interest, 30 yr mortgage, PITI comes to about 475$,

Total cash invested upfront: $21.5K

BUY AND HOLD NUMBERS:

The property is in what I would call a C to C+ neighborhood. We have already had tenants who we have background checked and seem like very solid tenants come through who want to sign a lease. Rents would be 850$ and 800$. 

1650$/month in total rent 

100$/month in water/sewer/trash

8% vacancy=132$ (VERY strong rental market here, vacancy will likely be lower. Had 50 inquiries in 48 hours of posting the ad)

10% maintenance and capex (should this be higher? building in pretty good shape overall)=$165

Monthly net cash flow= 1650-100-132-165-475=778$

*Note: I will be managing myself, so no management fees yet.

FLIP OPTION:

House would likely need about 10K in rehab, putting my total cost at 31.5K

I would list it for 135K, would be happy selling for 130K. 

I am a real estate agent, so no 3.3% commission to sell, so figure cost of selling will be 3.5% total. 3.5% of 130k=4,550

So, total proceeds from sale would be 130K-4.55K=~ 125K. 

paying off the 54K mortgage, and factoring in the 31.5k out of pocket, leaves a profit of roughly $40,000

Am I calculating this right? Hold time would likely be 30-60 days, so factor in another 1,000$ in holding costs. One other factor is that there is a retaining wall that will need to be replaced in the next 5-7 years. This will likely be a $15,000 job.

A little background on me. I have 2 duplexes that I manage, so I have a little experience in Buy and Hold. I have never done a flip before, so I'm not sure if i'm analyzing properly. Part of me wants to take the money and run as I'm not 10000000% confident in this neighborhood. My long term goal is to have enough income producing properties to be able to live off the cash flow. Any help is much appreciated! Feel free to let me know if I left something out or if you have questions. Thanks!!

Hey all-

I am looking at purchasing a SFH as a rental property. The current owner leases the property to a corrections company that works with early-release criminals and helps integrates them back into society. It is basically a halfway house. all tenant management is handled via the corrections company. Management company also pays the rent each month. Looks like there would be some decent cash flow, and at a relatively passive basis. The house is also in an up-and-coming neighborhood, and is likely priced too low simply because of the nature of the house and due to the fact that its not in great shape cosmetically.

Numbers:

Purchase Price: $150k

Monthly rent is $1700 per month

Owner Pays roughly $150/month in Utilities

Repairs are probably slightly less than the average SFH rental, as tenants are only there for a few months at a time, and are closely monitored. Very little furniture, pretty bare bones place on the inside.

Does anyone have any experience with a deal like this? Any thoughts/suggestions/questions? Seems like an intriguing idea to me...any help is greatly appreciated!!

(sorry for the double post...I fear that I posted into the wrong forum the first time)

Sorry. Roughly 1700$ per month in rent on a 150k$ property. Hoping I can get it for a little less than the 150k$

** Meant to say "rent is roughly 1.2% of the purchase price"