All Forum Posts by: Leo Maldonado

I agree with you @Roman M.

Hi All!

So I have been diligently working with Kate Tyler Hayes on finding the right 4 plex for me to start my real estate investing career. 

After a few maybes, a few No's, we FINALLY found a YES. 

Now remember that Miami is a high priced environment that moves quickly, so I want to make sure this is the right move for me. 

Purchase Price: $445,000

Loan Amt: $436,939

Interest Rate: 4%

Monthly PITI (including taxes+ Mortgage Insurance for FHA + Insurance): $2,928

Current Rents: $3700

Goal: $4600

Vacancy: 5% Allowance

Repairs: 5% Allowance

Monthly Cashflow: $1,063.36

BIGGER POCKETS CALCULATOR

Monthly Income:$4,600.00 (projected after raising rents)

Monthly Expenses:$3,536.64

Monthly Cashflow:$1,063.36

Pro Forma Cap Rate: 8.12%

NOI:$37,362.00

Total Cash Needed:$28,575.00

Cash on Cash ROI:44.66%

Purchase Cap Rate:8.40%

Any input? Looks like a turnkey property to me as its newer built in 1968, and has a new roof + some updated interiors. 

OK, so I just came back from meeting with the contractors and it looks like they estimate a 55k rehab to fix up the structure. 

Honestly, It has damage, but it is not necessary to fix at the moment. However, when it comes time to sell the property...that is the issue. 

This 4plex appears to be a REAL CASH COW, and I am still wondering if investing in it is a good choice or not. 

It can stay the way it is, but there is Mold on the inside near the a/c units. And it also has stucco and metal wiring in the walls. 

I am not sure what to do. I want it for the cash flow it produces, but the property does need work...

Someone want to chime in ? 

The total cash in I calculated accounts with a 30k rehab. However since I am using an FHA 3.5% Down then I might need to search for a 203k loan if I go down the rehab route.

Also, I dont think the rehab NEEDS to be done right away, but eventually it will need to be repaired. 

I am stuck wondering if its worth the hassle or not. 

@Sherman Ragland Thank you for taking a look. I am getting an estimate with a contractor this Wednesday to figure out the numbers for the rehab. 

The seller is not really cooperating with me on the necessary repairs, he only offered 5k credit at closing. My EMD is 5k and will be locked in on Friday 4/7 ( I extended the inspection period.)

Hi All,

I have a deal on the east coast of FL just a few hours up from Miami.

After many weeks of trying to get the offer accepted, I finally did. After doing a through home inspection report I came to realize that there are some issues with the property.

It is important to note that the 4 plex is actually a 3/1 1920's SFR , and a 1960's 3-unit in the back. Two seperate stuctures with each having their own issues.

On the main house it appears that there is structural damage due to termites (which the seller stated that happened before he was the owner, and its clear now of any termites). I have a full home inspection report that I can gladly share to anyone that wants to help me :)

Basically, the units interiors are pretty easy fixes, but there is also mold inside some of the units.

The MAJOR issues are that the WOOD Framing needs to be repaired under the home, and the Plumbing needs to be updated since there is leakage. (sewer leakage).

While I am sure that this over $1k CASH flowing deal is great for now, these issues will need to be rehabed in the future.

What do you guys think I should do?

Here are the numbers:

Purchase Price: $419,900

Hi All,

I have a deal on the east coast of FL just a few hours up from Miami. 

After many weeks of trying to get the offer accepted, I finally did. After doing a through home inspection report I came to realize that there are some issues with the property. 

It is important to note that the 4 plex is actually a 3/1 1920's SFR , and a 1960's 3-unit in the back. Two seperate stuctures with each having their own issues.

On the main house it appears that there is structural damage due to termites (which the seller stated that happened before he was the owner, and its clear now of any termites). I have a full home inspection report that I can gladly share to anyone that wants to help me :)

Basically, the units interiors are pretty easy fixes, but there is also mold inside some of the units. 

The MAJOR issues are that the WOOD Framing needs to be repaired under the home, and the Plumbing needs to be updated since there is leakage. (sewer leakage).

While I am sure that this over $1k CASH flowing deal is great for now, these issues will need to be rehabed in the future. 

What do you guys think I should do? 

Here are the numbers:

Purchase Price: $419,900

However, just goes to show that you CAN get the deal, if you remain persistent. 

I wanted to update everyone on the status of where I am at with this!

So in part of really wanting this deal to begin. I let my fantastic realtor  (Kate Tyler Hayes) know that I wasn't going to give up so easily on this deal. 

We remained persistent on the seller and submitted multiple offers during this time of his rejection. After slightly giving up on it... I waited a few weeks and asked if it was still available. She said yes and that he actually dropped the listing price 10K. Now he was asking for $419,900. I let her know to SUBMIT ANOTHER OFFER. (Keep in mind that this property was listed by the same seller last year for $450,000 and didn't sell)

This time he bit and we got the OFFER ACCEPTED!

All was great for a bit...... until we did the inspection. 

I will be posting another discussion about how to move forward with this after realizing that there are some issues with the property. Mainly..termite damage, and old plumbing/mold. 

See you all there! Can't wait